Australia has one of the highest rates of pet ownership in the world, with 63 percent of households home to one or more fluffy, furry or feathered friends.

And to most of us, they’re more than just pets – they’re members of our family and we want to be able to provide them with the best possible care, particularly if they become sick or injured.

But the reality is that vet bills can add up, particularly if your pet needs more care than can be provided in a routine visit.

One way to reduce some of the worry around veterinary costs is to take out pet insurance – but with some premiums setting you back hundreds of dollars every year, is it really worth it?

Usually only offered to dogs and cats, pet insurance can cut down the cost of vet bills by around 80 percent, depending on your coverage and what inclusions and extras you’d like. Factors to consider when selecting an insurer include the age and breed of your pet, whether it has any pre-existing conditions, waiting periods and the level of excess you’re willing to pay. 

Coverage comes in many forms.

Most pet insurers in Australia offer different levels of coverage:

● Accident – only covers those expenses that result from your pet being injured accidentally and can allow you to claim up to 80 percent of your vet bills;

● Accident and illness – covers expenses from an injury and/or unexpected illness, usually up to a yearly maximum;

● Accident, illness and preventative care – covers all of the above, including regular veterinary services like worming and vaccinations.

Some policies also include specialist care options, such as dental care, radiology, prescription medications, surgery and after hours emergency treatment as well as emergency boarding allowances. Just like health insurance for humans, pet insurance can also allow you to add on other services you think your pet may benefit from including herbal medicine, osteopathy and acupuncture.

What can affect your premium?

Age: If your pet is older and has never been insured, it doesn’t mean you can’t get coverage. It’s likely you’ll pay more though, or face more restrictions on the types of treatments you can claim. Some companies will only offer accident and injury cover for older pets, but others will offer lifetime coverage if your pet has been continuously insured from a young age. 

Breeds: For dogs, some breeds have congenital conditions and hereditary defects that may not be covered. Those policies with a higher price tag can help you out in certain circumstances, but make sure you check before signing up. 

Excess: Similar to car insurers, pet insurance companies offer discounted coverage if you’re willing to pay an excess if your pet needs treatment. This can vary dramatically. And also be aware that a lot of insurers won’t cover the full cost of treatment, it’s usually closer to 80 percent.

Waiting period: Most insurers have at least a 30-day waiting period for illness treatment, and up to six months for significant procedures. Accident treatment is usually covered immediately.

Pre-existing conditions: Unfortunately, no insurance company will cover a pet that has a known illness or injury. If your pet falls into this category, you can still take out a policy but any treatment required for that particular condition won’t be covered. 

Do your research.

Before you commit to any kind of pet insurance policy, make sure you read the fine print. Thoroughly researching the policy before you sign and ensuring it meets your needs is the best way to avoid heartache down the track when you realise your pet is not covered for certain treatments. And if you can’t find the answers you need on the insurer’s website, email or phone them. 

There’s no doubt that pet insurance can save you thousands if your little mate meets all of the insurer’s criteria, and you select the right level of coverage for your needs.