Is Pet Insurance Worth It?

Many pet owners deliberate whether it is worth getting pet insurance. Over the past decade, pet insurance has grown hugely in popularity, but even so, many dog and cat owners find it difficult to decide if they should take out pet insurance for their pet.

When your pet is happy and healthy, it is hard to foresee a time in the future when things might go awry. But speak to any pet owner who has dealt with a serious accident or illness experienced by their pet and they will usually complain about the huge financial expense required to get their pet back to good health.




The fact is that vet treatment is getting more and more expensive and that accidents and illnesses occur frequently, especially in the puppy years and the senior years. We know that most pet owners visit the vet at least a couple of times a year, and that vet bills for major surgery or illnesses often add up to thousands of dollars.


The cost of vet care

To calculate if pet insurance is worthwhile, it is important to be aware just how much treatment for health conditions can cost. Statistics provided by the Australian Veterinary Association show that the amount spent on our pets has ballooned over the last decade as better vet treatment options become available, and there are no signs of this slowing.

The 2019 Pet Survey Report indicates that Australians spent more than $13 billion on pet products and services in 2019. Veterinary services accounted for 20% of this spend, equating to more than $2.6 billion annually – up 19% since the previous survey in 2016. This places veterinary services as the second largest category of on-going expenditure, with pet food in first position, according to the survey participants.

According to the survey, the proportion of dogs visiting the vet increased from 79% to 84%, with the annual vet bill also increasing from an average of $479 to $546. Around 68% of cats pay a visit to the vet each year, with an annual spend of around $371.

Dog and cat owners who visit the vet are going multiple times a year – averaging 2.1 visits per dog and 1.7 per cat. The most common reasons tended to be check-ups and vaccinations, followed by general illness or injury, de-sexing and dentistry.

So, how do you assess if pet insurance is worth it for you? The first thing that can help is to get an understanding of the costs you could be up for if your pet becomes ill or injured. Below are tables that illustrate typical veterinary costs for some of the most common health conditions for dogs and cats. These are broken down into the average claim and the highest claim that we have received for each condition (data from 1 July 2017 to 30 June 2018).


Average vet costs (claims) per health condition for dogs

Diagnosis Group Average Claim per Pet Maximum Claim
Vaccinations / Health checks $98.58 $968.00
Heartworm Control $93.78 $3,608.68
Otitis Externa (Ear Inflammation) $161.69 $3,873.35
Flea/Tick/Worm control $46.12 $535.00
Arthritis $113.52 $3,704.10
Ear Infection $164.54 $4,875.41
Cruciate Ligament Rupture $1,017.72 $8,986.81
Mass Lesion $424.39 $6,480.65
Dermatitis $176.42 $3,374.40
Diabetes Mellitus $165.15 $8,054.25


Average vet costs (claims) per health condition for cats

Diagnosis Group Average Claim per Pet Maximum Claim
Vaccinations / Health checks $95.70 $490.70
Flea/Tick/Worm control $26.03 $314.74
Heartworm Control $23.75 $241.60
Prescription Diets $43.95 $286.80
Vomiting – Other – Presenting complaint $349.80 $3,318.20
Diabetes Mellitus $180.30 $4,236.31
Abscess – Cat bite abscess $305.69 $1,989.82
Hyperthroidism $227.65 $2,072.94
Renal (Kidney) disorder $324.51 $4,055.90
Urinary Tract Infection (UTI) $260.55 $2,521.63

Average pet insurance costs

When calculating if pet insurance is worth it for a cat or dog it is important to understand what the cost of pet insurance will be over time as your pet ages. Pet insurance premiums are risk graded against many factors, including the age and breed of the pet. Factors such as the location and the age of the pet’s owners also typically play a role.

As at May 2020, the average cost of pet insurance from Bow Wow Meow was $668 per annum for a dog and $423 per annum for a cat (based in all active Bow Wow Meow policies as at 07/05/2020).

The table below illustrates a further break down of average pet insurance premiums for cats and dogs in different age brackets. This will help you to better understand if pet insurance for your cat or dog is worth it.

However, to get a truly accurate idea, we recommend that you take a minute to get a pet insurance quote.


Average Bow Wow Meow pet insurance premiums
(as at May 2020)

Age of Dog Accident Plus plan Peace of Mind plan
(Accident + Illness)
Under 2 yrs $381 per annum $674 per annum
2-5 yrs $320 per annum $735 per annum
6+ yrs $289 per annum $821 per annum
Age of Cat Accident Plus plan Peace of Mind plan
(Accident + Illness)
Under 2 yrs $229 per annum $482 per annum
2-5 yrs $227 per annum $404 per annum
6+ yrs $265 per annum $427 per annum

Note: Excludes Ultimate Care plan

Pros and cons of pet insurance


Team of veterinarians


As you can see from the average claims data provided in the tables above, pet insurance claims can vary quite substantially depending on the type of accident or illness and its severity.

A starting point when considering whether pet insurance is worth it would be to ask yourself if you could afford bills like these at the time they arise, and if not, what would you do? Would it be worth compromising the standard of care your pet will receive due to financial constraints? We have heard many stories of pet owners going into debt to finance their pet’s medical bills, or even worse, having to choose between money and the life of their pet.

Pet insurance provides a mechanism to level out your vet expenditure over your pet’s lifetime and mitigates the risk of having to pay a huge vet bill in one lump sum.

As with most things in life, there are trade-offs, and pet insurance is no different. To help you weigh up whether pet insurance is worth it for your cat or your dog – and for you as their owner – we have put together a list of the pros and cons of pet insurance to help you make an informed decision. It is important to understand all the relevant factors, and to consider which Pet Insurance Policy is right for your circumstances by reading the Product Disclosure Statement. We hope this information helps you answer the question, “Should I get pet insurance?”

Pros of pet insurance

  • Save money: A serious injury or illness can leave you many thousands of dollars out of pocket, but having pet insurance could save you from having to fund this. With pet insurance, large vet bills that ordinarily wouldn’t be in your budget can now be contemplated.
  • It is a form of budgeting: It is often difficult to discipline yourself to put aside money for pet emergencies. Pet insurance premiums are a way to force yourself to do this so that most of the risk is transferred to the insurer.
  • Give them the treatment they need and deserve: When you are insured, you no longer need to choose the least expensive treatment instead of the treatment they need. Rather, you can have the comfort knowing you will be covered for eligible vet treatment which addresses their real needs.
  • Peace of mind: It is highly stressful when something happens to your beloved pet. Wondering how much the vet bill will be or how you are going to afford it does not help, but with pet insurance, you can rest easy knowing that your large eligible vet bills will be taken care of. Pet insurance alleviates that stress so you can focus on what matters and how to best deal with the issue at hand and help your sick or injured pet get through it.

Simply put, having pet insurance helps you to be the best pet parent when your pet needs you most!

Cons of pet insurance

  • Pet Insurance does not cover everything: It is simply not feasible for insurers to cover every potential situation that could happen to your dog or cat – this would cause pet insurance premiums to sky rocket and make it inaccessible to the majority of pet owners. Therefore, all insurance policies have exclusions so that risk can be better managed. For example, most pet insurance policies in Australia do not cover dental work. There are also exclusions relating to declared pandemic diseases which cause widespread illness, voluntary euthanasia, vet costs relating to pregnancy, elective or cosmetic procedures and pre-existing conditions.
  • You may be required to pay up front: Pet owners may need to pay the vet up front for the vet bill and then wait until that money is reimbursed by their pet insurance company. However, Bow Wow Meow pays out more than 85%-95% of eligible claims within 5-10 working days from receipt of all supporting documentation, which means the money will be back in your account soon. We provide Gap Only cover at participating vet clinics, meaning you only have to pay your portion and not the full amount up front.
  • There is a usually a co-payment and sometimes an excess: For all our policies, Bow Wow Meow covers 60%, 70% or 80% of veterinary expenses, depending on which percentage you elect when taking out your policy. This means that the policy holder will need to cover the remaining 20 to 40%. Note that there is no excess to pay on Bow Wow Meow’s policies, so you can safely claim for even the smallest vet bills.
  • Some conditions have sub-limits: Besides the overall annual policy benefit limit (Bow Wow Meow has a choice of $5,000, $10,000, $15,000 and $20,000 annual limits. See Product Disclosure Statements for details of each plan), policies also have sub-limits for certain items. For example, there is an annual sub limit $2,600 or $3,200 (depending on plan) for cruciate ligament claims.
  • No Illness Cover for pets or Indoor Cat Cover for cats if they do not have a policy before they turn 9 years old: Once a pet is over 9 years of age, if you want to take out a new policy, you will only be able to get Accident cover. If you would like to ensure that your dogs or cats have full health cover in their senior years (over the age of 9 years), simply take out a policy before they reach their 9th birthday and continue to renew your policy in accordance with the applicable terms and conditions.
  • Pre-existing conditions are excluded from cover: If your pet has had or currently has a condition that requires treatment and you decide to take out pet insurance, that condition will be excluded from cover. In addition, if your pet develops or shows any symptoms or signs of a condition that required treatment prior to you taking out Pet Insurance or within the applicable waiting period of your policy, it is also classified as a pre-existing condition.  It is therefore important to understand the waiting period implications. However, if you insure pets from a young age, certain conditions may not be excluded as pre-existing conditions. Additionally, Bow Wow Meow does have an option in our policies which allows a policy holder to apply for a pre-existing condition review to remove the pre-existing condition, provided they have had continuous cover for 18 months and no signs of that condition have appeared during the 18-month period.


Pet insurance vs. self-funding

We sometimes hear people say that it would make more sense to put a fixed amount away each month as part of a savings plan to pay for unexpected vet bills should they arise. This does seem like a viable way to avoid paying pet insurance premiums, so why not take on the risk oneself? Although well intentioned, this savings account option does not mitigate the risk the same way that pet insurance does. Let’s run through a few scenarios.

Let’s assume you decide you are disciplined enough to put away $60 per month in case something happens to your dog ‘Max’. After five months, your fund is worth $300. However, while taking Max out for a walk, he tears his cruciate ligament and the vet advises that the repair will cost $3,800. Now what?* (*This is an example only. Not all conditions and treatment will be covered. Refer to the Product Disclosure Statement for details of Bow Wow Meow Pet Insurance cover.)

veterinarian with clients and french bulldog


Ok, I hear you say, the chances of this happening within the first five months are slim. But, from our claims statistics, we know that if your dog is a puppy, the risk of health issues and particularly accidents, is higher than that of more mature dogs. Puppies are curious and accidents happen frequently.

Let’s look at another scenario. Max has been perfectly happy and nothing has happened over the first three years of his life. You have saved $2,160 over this period plus a little in interest. You are outside chatting to the neighbour and Max is sniffing around outside. Suddenly there is a yelp and Max has sustained two bite wounds; one to the neck and one to his back leg. The vet’s bill totals $1,700 …you think that’s okay, I have over $2,000 in my fund so this is covered! However, the leg wound becomes infected and there is another $500 to pay the following month. Your fund is suddenly back down to zero.(*This is an example only. Not all conditions and treatment will be covered. Refer to the Product Disclosure Statement for details of Bow Wow Meow Pet Insurance cover.)

By this stage you may be feeling a little anxious as there is now little or nothing left in your fund. However, although there are interest charges to consider, you may still be able to borrow money to pay for an operation or a large vet bill if the need arises. The problem is that this still doesn’t mitigate the risk of anything else happening in the near future and it doesn’t exactly offer you peace of mind.

To illustrate further, we have put together the table below which looks at your options when paying for vet care with pet insurance (using the example of a $3,000 cruciate ligament procedure) compared to borrowing to fund the procedure.

Example based on a $3,000 cruciate ligament procedure as at June 2018

Self funded Requires easy instant access to cash reserves, which is typically not an option for many people. Total cost = $3,000
Credit (loan, credit card, Vet Pay) Many pet owners use this option if they do not have pet insurance. However, it does have a number of implications:

  1. You need to repay the loan;
  2. You are usually charged a high interest rate
  3. There may be loan approval processes; involved and application fees/entry costs.
  1. Repayment of $3,000
  2. $900 interest payment over 2 years (at an interest rate of 15%)
  3. Vet Pay charge a $35 application fee

Total cost = $3,935

Pet Insurance

Pet Insurance, similar to other forms of insurance, is about a large number of pet owners paying a relatively low premium into a pool and essentially spreading the risk. This pool provides each insured member a high level of cover from which at the time of need they are able to “claim” to pay for the unexpected costs depending on what they are insured for.

Benefits of insurance:

  1. Low premium paid in instalments;
  2. Ability to choose your cover and excess/co-payment (how much you want to share in the claim);
  3. Allows multiple claims up to annual limit;
  4. Limit resets on anniversary providing financial peace of mind.
Average cost of policy per year = $500

Annual level of cover = $8,000

Cruciate cost = $3,000

Co-payment of 20% = ($600)

Benefit = $2,400

Total cost to owner = $1,100 (annual premium plus excess), a benefit of $1,900

*This is an example only. Not all conditions and treatment will be covered. Refer to the Product Disclosure Statement for details of Bow Wow Meow Pet Insurance cover.

The difficulties of budgeting for chronic conditions

Chronic, or ongoing conditions, are very common for cats and dogs. The good news is that, with advances in vet care, there are many more treatment options available nowadays. However, many forms of treatment are very expensive and require regular ongoing medication.

If your pet develops a chronic condition, whether cancer, diabetes or even a skin condition requiring ongoing treatments, your pet insurance will cover the cost up to the annual limit (excluding sub-limits – see Product Disclosure Statement for details) every year for the life of the pet, provided you continue to renew your policy each year and subject to the terms and conditions.

When it comes to managing chronic conditions, there is no doubt that pet insurance is worth it.  However, if you use a self-funding option, there is simply no way to prepare your fund for an eventuality like this, and any chronic condition can end up being a significant expense over many years. If your pet is over nine years of age, the risk of falling ill also increases and budgeting for an older pet becomes extremely challenging.

In summary                                      

So, is pet insurance worth it? There have been several surveys conducted amongst pet owners asking how much they would spend to save their pet, if they were ill or injured. The majority answer that they would be willing to spend any amount needed. However, vets tell us that when some pet owners are faced with the treatment options at varying costs, they may choose the least expensive or most affordable treatment, with compromised outcomes. For example, in the case of a cruciate ligament issue, the owner may choose to not go ahead with surgery and select a cheaper form of treatment, leaving the dog with a limp. Clearly this is not ideal for either the pet or the owner.


For those pet owners who would be happy with an outcome such as this, or would be prepared to euthanise their pet if it got seriously ill, pet insurance might not be necessary. However, for most us, who love our pets as part of the family and want to give them the best treatment available always, pet insurance can provide peace of mind for relatively little cost. Many pet owners look back after an accident or illness has occurred and say that pet insurance would have been great to have. However, by this stage, it is too late to cover that bill.

Nowadays, pets are considered part of the family. Unfortunately, it is common for our furry family members to land up at an emergency clinic or speciality hospital at least once in their lifetime. Only ten to twenty years ago, many of the current veterinary procedures and treatments were not available and many pets were euthanised. With the pace of technology and the resultant advances in veterinary care that we see today, pet owners are now able to provide their pets with highly specialised, quality vet care.

However, the costs of delivering better healthcare to our pets are continuously increasing. The specialisation of veterinary care in the future will provide us with even more options and even better outcomes…. and greater costs. A good question to ask yourself is this, “Would you be willing to spend upwards of $4,000 to treat your furry family member?”. If you have answered yes, but at the same time, you are concerned about affordability, it is highly likely that pet insurance is a worthwhile and viable option for you.

Pet insurance provides the ability to budget for any unforeseen risks and bridges the gap between increasing vet costs and the provision of good healthcare… whilst creating peace of mind at the same time. Premiums can be adjusted depending on the policy, annual benefits, co-payments and per condition excess that you choose. Many pet owners are now saying yes to pet insurance, your pets are worth it!

Get a pet insurance quote!

Please note, any advice provided is general only. Refer to the applicable Product Disclosure Statement for details of Bow Wow Meow Pet Insurance cover.

*Please note, any pet insurance advice provided is general only. Refer to the applicable Product Disclosure Statement for details of Bow Wow Meow Pet Insurance cover.