Do I need pet insurance?
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Pets have become a central part of life to many, and are often considered members of the family. Its difficult to imagine anything happening to our pets, but its important to remember that they have health needs just like us. Pet insurance assists with the burden of unexpected vet bills for illness or injury treatment by reimbursing you a percentage of your out of pocket expenses. It seems like a no brainer then. If vet bills worry you, you can pay to have that worry alleviated in the off chance you need it. If you’ve gotten this far, then it just becomes a question of how much you are willing to pay for that emotional freedom.
Now this is an almost impossible task to do without first having a look at those potential expenses, costs of treatment, and even health data for pets. Some breeds have some pretty nasty congenital conditions that deserve reading up on before even taking the plunge into ownership. By taking a look at the claims experience of existing policy holders, the likelihood of developing different conditions, and the cost, we can put the price of pet insurance in perspective.
Petsure Statistics
We’re going to be referring to data from Petsure’s Health Monitors as they provide invaluable insights into the average claims experience of most Pet Insurance customers in Australia. They are literally providing inside knowledge of the risk of your worst dreams coming true. As insurance works in principle by distributing a few large claims out among a larger population of low/non-claimers, they really are justifying their prices. So hey, you can be the judge!
How expensive can pets really be?
According to PetSure 2023 claims data, one in seven dogs & cats have had lifetime healthcare costs exceeding $50,000.*
The lifetime cost of owning a pet is around $30,000.** That’s a significant portion of large claimers and, at the same time, a significant risk that anyone could find themselves in that situation. So, we expect this to mean the insurance won’t be cheap, but there does appear to be a justifiable reason why when the claims payouts are so large and frequent.
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What if my pet never gets sick?
While we all wish this could be the case, the data doesn’t leave much chance of avoiding some form of vet visit in the future. “On average, pets have been taken to the vet twice since the onset of the pandemic (more frequently for dogs, at 2.5 times)—with vaccinations and general check-ups being the most common reasons for a visit to the vet.On average, pets have been taken to the vet twice since the onset of the pandemic (more frequently for dogs, at 2.5 times)—with vaccinations and general check-ups being the most common reasons for a visit to the vet.”***
Then there’s the statistics on chronic conditions later in life that can get quite upsetting.
- One in four dogs will get cancer during their lifetime.*
- By age 15, one third of Petsure customers claimed for arthritis.*
- Over 20% of insured dogs claimed for heart conditions by age 14.*
Most people don’t use their pet insurance. What if I pay all this money for nothing?
PetSure underwrites over 80% of the Australian market, helping to cover veterinary treatment costs for over 4,000 pets every day.* Now that’s a pretty fluffy marketing line, but the sheer volume of claims do indicate a need in the market that it is fulfilling actively and increasingly. In 2023, PetSure processed over 5,000 claims per day and reimbursed over $330 million to their customers.*
- The average pet insurance policy holder is 27% more likely to claim on pet insurance each year than any other general insurance.
- 45% of Petsure’s customers claim at least once a year with many claiming up to four times.**
I heard <brand> knocks back claims so it’s not worth it.
In 2022, <Petsure> reimbursed over $300 million to insured customers and approved 90% of claims.**
This all just not landing with you?
You may be in the “one in five pet owners (who) haven’t visited the vet in the last two years.”*** Look, they list reasons but at least do the checkup and vaccination each year. One visit. Predictable cost. Your vet isn’t a crooked mechanic looking to trick you into medical services, they just studied years learning how to tell if your dog has a bone stuck in their butt. Trust them, not yourself.
Otherwise, yeah maybe insurance isn’t for you.
Disclaimer: I, the author, work for a pet insurance company. This article reflects only my personal opinions and holds no affiliation with my workplace. I am not remunerated in any way for this article. I will never recommend nor advise you toward an insurer. The information provided here is factual in nature only.
*https://petsure.com.au/wp-content/uploads/2024/06/Pet-Health-Monitor-2024-spreads-v.pdf
**https://petsure.com.au/wp-content/uploads/2023/04/PetHealth-Monitor-2023-ONLINE-spreads-1.pdf