What is pet insurance? A super quick Mozo guide

How does pet insurance work?

Just like car or home and contents insurance, pet insurance can help cover the costs of vet bills if your pet gets sick or injured. It does this by reimbursing the eligible costs of veterinary bills you've already paid. Here’s how it works:

Choose your policy and pay your premium. Once you compare pet insurance policies and have picked your desired level of cover (including any optional extras you might want), you sign up and pay either a monthly or yearly premium.
Make your claim. From there, if your pet needs veterinary care, you'll need to pay for the cost of the treatment up-front and submit a claim for reimbursement from your pet insurance provider later.
Get reimbursed. Based on recent numbers from several popular providers, you may get back as much as 85% of the total cost of your vert bills (or up to $20,000 per year).

Pet insurance coverage can vary depending on the policy and provider. That's why it's important to compare pet insurance, to ensure you're getting what you want from a policy.

For the most accurate understanding of a specific pet insurance policy, it’s essential to read the product disclosure statement (PDS) carefully. This document outlines all the inclusions, exclusions, limits, and excesses that may apply to your policy.

What animals are covered under pet insurance?

Most people want insurance for their dog or cat, but you probably know someone with a bird, ferret, or something a little less common. These days, there’s insurance for all sorts of animals—you just need to know where to look.

Here’s a quick rundown of what you might find in Australia:

Dogs and cats. Dog insurance and cat insurance are what most people need, and it’s what we focus on in this guide and throughout the site. Some of these policies may also extend to guide dogs, show animals, and emotional support pets, depending on the provider.
Exotic pets. Got a bird, lizard or ferret? You’ll likely need a specialised insurer. Exotic pet insurance policies aren’t as common, but they are out there.
Working animals. If your pet is used for farming, breeding, or security, you’ll likely need a policy designed for specifically for working animals.
Horses. Horse insurance is separate from regular pet insurance, with cover for injuries, illness, and liability related to riding or competition.

So whatever kind of pet you have, make sure you talk to your prospective insurer and read the PDS in detail to ensure you’re covered.

What types of pet insurance are there?

Infographic showing the levels of pet insurance cover

Pet insurance generally comes in three main types, but insurers have a lot of flexibility in how they structure their policies. This means coverage can exist on a spectrum, with different versions of the same category offering more (or less) than what’s described in general terms below. But in general, most policies fall into one of these categories:

Accident-Only Cover. Covers injuries from accidents—like broken bones, bites, or cuts—but won’t cover illnesses, long-term conditions, routine care or general visits/consultations.
Accident & Illness Cover (A&I). Covers both injuries and illnesses, from infections to serious conditions like cancer, and will usually cover general visits/consultations. However, routine care—such as vaccinations or dental cleanings—usually isn’t included unless added on.
Comprehensive Cover. Covers accidents and illnesses like an Accident & Illness policy but also includes some level of routine care, such as annual check-ups, flea treatments, or dental work. Some policies bundle in additional benefits, while others offer them as optional extras.

But as we mentioned, insurers don’t always stick to these exact categories.

For example, one provider offers four different levels of Accident & Illness cover, all with different claim limits, and some allowing routine care as an optional extra. Another insurer structures its policies as Essentials, Comprehensive, and Major Medical—where Essentials is similar to Accident & Illness but excludes cancer treatment, Comprehensive aligns with a standard Accident & Illness policy, and Major Medical offers additional benefits typically associated with Comprehensive cover, such as routine care.

So while the three categories we provided offer a general framework, it’s up to you to review your offerings in detail and choose the one that offers the coverage you need.

What does pet insurance cover?

As we mentioned earlier, pet insurance policies vary in what they cover, but most include a combination of the following:

Category	What it can cover
Accidents	- Broken bones, cuts, wounds, burns, and poison ingestion - Emergency surgery - Accident-related hospitalization
Illnesses & Chronic Conditions	- Infections, cancer, diabetes, arthritis, and organ disease - Gastro issues, skin conditions, ear/eye infections - Hereditary and congenital conditions - Prescription medications and ongoing treatment
Specific Illness Categories	- Cruciate ligament conditions - Tick paralysis - Breed-specific or hereditary conditions (varies by policy)
Routine & Preventive Care	- Vaccinations and parasite prevention (flea, tick, heartworm) - Annual health check-ups - Dental cleanings (if included) - Desexing - Microchipping
Visits & Diagnostics	- General vet consultations - Specialist care - Lab tests and diagnostics (bloodwork, biopsies) - Radiology (X-rays, MRIs, ultrasounds)
Specialised Treatments & Therapies	- Alternative treatments (acupuncture, physiotherapy, hydrotherapy) - Behavioral therapy - Dental procedures (beyond routine cleanings)
End-of-Life & Emergency Boarding	- Euthanasia and cremation/burial - Emergency boarding if you're hospitalized
Other	- Overseas vet care - Liability in case your pet damages someone’s property or injures another person or pet

As we mentioned, every policy is structured differently, so if you’re looking for something specific from the table above, it’s always worth checking the product disclosure statement of any policy you’re considering before signing up.

What doesn’t pet insurance cover?

Even the most comprehensive pet insurance policies have exclusions. While details vary between providers, most policies won’t cover:

Category	What’s usually excluded
Pre-Existing Conditions	- Any illness, injury, or condition your pet had before the policy started - Conditions that appeared during the waiting period
Elective & Cosmetic Procedures	- Ear cropping, tail docking, and declawing - Non-essential surgeries and cosmetic treatments
Preventable & Behavioral Issues	- Illnesses caused by lack of vaccinations or parasite prevention - Behavioral issues like aggression or anxiety - Training and obedience classes
Breeding & Working Animals	- Pregnancy, birth complications, and breeding-related care - Injuries or illnesses in pets used for security, racing, or farming
Banned Breeds	- Some insurers won’t cover specific dog breeds that are restricted under local laws
Non-Vet & Miscellaneous Costs	- Pet food, vitamins, and supplements - Grooming and nail clipping - General boarding and transport

A note on pre-existing conditions

Some policies may cover a pre-existing condition if it’s considered temporary and your pet has been symptom-free for a certain period. However, chronic conditions that existed before your policy started are usually always excluded.

Since exclusions vary, it’s always best to check the Product Disclosure Statement (PDS) to understand exactly what’s not covered.

How much does pet insurance cost?

Many factors go into determining the cost of pet insurance. These can include the type of pet you own, where you live, your level of cover, any optional extras you add, and your pet’s size, age, and lifestyle.

According to Mozo's 2024 Pet Insurance Report, here is the average monthly cost for cats and dogs of various ages:

Pet	1-year-old	5-year-old
Dog	$113	$137
Cat	$59	$68

Did you know your pet's breed also plays a part in the price of your insurance premium? Our report mentioned above also details the different insurance costs of dog breeds, showing Rottweilers as the most costly and terriers as more affordable dogs to insure.

Read about cheap pet insurance for more information on pet insurance quote pricing.

How to find the best pet insurance

No one policy will be the best for everyone because so many factors go into deciding both your premium and level of coverage. However, if you’re comparing policies, you can start by checking out some of the best pet insurance award winners, as decided by our research experts, for the 2024 Mozo Experts Choice Pet Insurance Awards.

Brad Buzzard

RG146

Senior Money Writer

Brad is a senior writer at Mozo, leading insurance and superannuation coverage. With a background in marketing analytics, he brings a research-driven approach to his work, ensuring content is clear, accurate and genuinely useful. Brad dives deep into topics, using the writing process to refine his understanding and deliver well-researched, polished content.

Pet insurance FAQs

Is pet insurance worth it?

Like most insurance policies, it can be hard to see their value when everything has gone smoothly.

But if you can foresee a situation where you need to choose between your bank balance or treatment for your furry friend, then you might find it's better to be safe than sorry.

Getting good value pet insurance is about balancing your monthly budget with your level of coverage. A cheap or expensive policy isn’t worth the money if your pet isn’t adequately protected.

When considering your policy options, read through the relevant product disclosure statements (PDS) to understand the benefits, exclusions, and other conditions and whether the policy is suitable for you and your pet's needs.

How do I compare pet insurance policies?

Before choosing a pet insurance policy, it's vital to read the PDS to fully understand inclusions, exclusions, costs, and other terms and conditions. This way, you'll be better placed to pick the best option for you and your pet. Here are some things to keep in mind:

Budget: When selecting a policy, assess your income and budget to determine how much you can afford. This will give you insight into which type of cover you should go for and show you whether a monthly or annual premium will suit you better.
Waiting periods: There's usually a set period between your visit to the vet and when you can make a claim. Waiting periods can vary for treatments, so read up on this in the PDS – it could help decide which policy may work best for you.
Pre-existing conditions: Disclose any pre-existing conditions to your insurance provider before you take out a new policy. This way, you can confirm whether your pet’s illness is covered. Remember to carefully read the PDS to check whether the provider will also cover your pet's pre-existing condition.
Benefit caps: Check the PDS on your pet insurance policy to determine the annual limit on claims.
Pet breed: Certain illnesses, health risks, and character traits are more common among particular breeds. This means that depending on your pet's breed, insurance might be more expensive or unavailable to them.
Pet age: Most pet insurance providers won't newly cover pets over eight or nine years old, so you'll want to get your furry friend insured while they're young. Some insurance companies will increase your premium as your pet gets older and as they become more of a health risk. So remember to check this before signing up.

Can I cover my pet if they have a pre-existing condition?

Pets with pre-existing conditions can still be covered by pet insurance – but you might find that your coverage isn't extended to any claims relating to said condition.

One option would be to purchase an accident-only policy, which gives you coverage for accidental injuries not caused by diseases.

Alternatively, you might choose not to get pet insurance and open a savings account dedicated to emergency pet expenses and vet bills. Just be sure to regularly deposit money into the account or set up an automatic monthly or fortnightly debit (depending on when you get paid), so there's always money there if you need to cover some vet bills.

How do I make a pet insurance claim?

How you claim your pet insurance policy will depend on your insurance company. Nowadays though, most insurance claims are made online. This will usually involve uploading receipts, invoices, vet statements, or other relevant documents online for your insurance provider to assess. Remember that if this is your first claim, you may be required to provide additional documentation, so check with your insurance provider first.

How do I renew my pet insurance policy?

When you sign up for a pet insurance policy, the policy usually renews each year automatically unless you cancel your policy.

Can you get pet insurance for multiple pets at once?

You sure can! If you've got more than one furry friend running around at home, you'll be happy to know that many insurance providers allow cover for multiple pets. You might even score a multi-policy discount with some insurance providers.