Pet insurance can be an absolute lifesaver when it comes to taking care of our pets in Australia. But let’s be honest: understanding pet insurance terms can be confusing. With all the jargon, it’s no wonder many pet parents feel overwhelmed about what they’re signing up for!
Understanding pet insurance terms isn’t just about crunching numbers. It’s about being empowered to make informed choices that could save you from hefty vet costs down the road.
By familiarising yourself with these common pet insurance terms, you can find a plan that ensures your pet gets the care they need without breaking the bank.
How does pet insurance work?
Pet insurance is a type of health insurance that helps cover the cost of veterinary care for your pets. It is designed to cover unexpected costs due to accidents and illnesses. Optional extras can also provide coverage for certain conditions, but routine care like vaccinations is generally not included.
So, how does pet insurance work? After signing up for a policy, you’ll typically pay a monthly premium.
If your pet needs veterinary care, you’ll pay for the services upfront, and then submit a claim to your insurance provider for reimbursement. The amount you get back depends on your chosen coverage.
Understanding pet insurance terms is the first step to making smart choices about your pet’s coverage. Knowing the policy lingo will help you find a plan that fits your budget and your pet’s needs.
For example, being aware of pre-existing symptoms and conditions and waiting periods will help you know what to expect when filing claims. By learning these terms, you can read policy documents more easily and use your insurance effectively when you need to make a claim.
This structure allows you to make decisions based on your pet’s health needs rather than financial constraints. If you’re looking for a clearer understanding of how pet insurance works, check out our guide to pet insurance for beginners.
Pet insurance terms for first-time insurers
This guide aims to simplify and explain the most important pet insurance terms. Whether you’re a first-time pet parent just starting to explore your options or a seasoned pawrent considering a switch, knowing these essential terms will help you choose the right policy.
Accident
- An accident is any incident that is unexpected and unintentional, resulting in an injury. This includes the following:
- Fractured bones
- Lacerations and cuts
- Burns
- Sprains and strains
- Ingestion of foreign objects
- Electrocution
- Poisoning
- Getting stuck or entangled
- Heatstroke
Alternative therapies
- Alternative therapies are referred to as specialised therapies in the policy and are not typically part of standard veterinary medicine:
- Therapeutic Exercise
- Thermotherapy
- Therapeutic Laser
- Therapeutic Ultrasound
- Therapeutic Massage
- Manual Therapy/Joint Mobilisation/Passive Range of Motion
- Hydrotherapy
- Land Treadmill
- Neuromuscular Electrical Stimulation
- Extracorporeal Shock Wave Therapy
- Acupuncture
- Veterinary Spinal Manipulative Therapy (similar to chiropractic)
- Pulsed Magnetic Therapy
- Pulsed Signal Therapy
- Bioelectrical Whirlpool
- Trigger Point Therapy
- Hyperbaric Oxygen
- Kinesiology Taping
- Transcutaneous Electrical Nerve Stimulation
Annual excess
- Annual excess is the total amount you must pay for all approved claims during each insurance period, as noted in your Certificate of Insurance. This amount will be subtracted from approved vet costs before we calculate any benefits you receive. The annual excess is a one-time payment per insurance period, deducted from your total approved vet costs before calculating the benefit.
Example:
Let’s say your pet insurance policy states that the Annual Excess is $200. During the Period of Insurance, you make three claims for your pet’s veterinary expenses, totaling $1,500.
Before the insurance company pays for any benefits, they subtract the Annual Excess from the total accepted vet costs: $1,500 (total accepted claims) – $200 (Annual Excess) = $1,300
Now, if the policy has a Benefit Percentage of 80%, the insurance will cover 80% of the remaining costs after the Excess:
Benefit Paid by Insurance: $1,300 × 80% = $1,040
So, you would pay the Annual Excess of $200, and the insurance would pay you $1,040 for the claims you made.
Annual limit
- Annual limit is the highest total amount we will pay for all claims related to your pet during the insurance period, as stated in your Certificate of Insurance.
Example:
Knose pet insurance has a high Annual Limit of $25,000. Over the Period of Insurance, the total amount of claims you submitted is $25,500. Since the Annual Limit is $25,000, the insurance will only pay up to that amount. In this case, you would have to pay for the remaining $500.
Behavioural problem
- Behavioural problems are unusual or disruptive behaviours in your pet caused by their actions, temperament, or social conditions. Behavioural problems, such as excessive chewing or anxiety, may be covered if you have selected the optional extra benefits for behavioural conditions. Without this optional cover, behavioural conditions are generally excluded.
To learn more, check out Why Pet Behaviours Matter and How to Respond.
Benefit percentage
- Benefit percentage is the portion of eligible vet costs that we will pay you back, as shown on your Certificate of Insurance, after considering any limits or deductibles. Knose Pet Insurance allows you to select a benefit percentage, usually 70%, 80%, or 90%.
Example:
Your pet insurance states a Benefit Percentage of 80% and you have a veterinary bill of $1,000.
Reimbursement calculation: $1,000 x 80% = $800
So, you would receive $800 back from the pet insurance company after paying your vet bill. If there are other limits or deductibles, they would be deducted from this amount.
Bilateral condition
- Bilateral condition is any health issue that affects both sides of the body, such as ears, eyes, knees, ligaments, or hips. If one side is affected, the other side is also considered part of the same condition. Under Knose Pet Insurance, bilateral conditions are treated as one condition, meaning coverage limits apply to both sides of the body collectively rather than separately.
Example:
If your dog has a cruciate ligament disease in one knee and later develops the same issue in the other knee, both problems will be treated as one single condition for insurance purposes. This means that coverage limits might apply to the combined issue rather than each knee separately.
Certificate of Insurance
- Certificate of Insurance is the document that outlines the details of your pet insurance coverage. It is part of your policy and may be updated if needed.
Consultation
- Consultation is an assessment by a veterinarian, whether in person or via phone/video, to evaluate your pet’s injury or illness. This includes various types of visits, such as regular check-ups, emergency visits, and specialist referrals. Consultations related to an illness or injury are covered, but routine health check-ups and other non-treatment consultations are generally excluded unless you have not opted out of this cover.
To help you save on veterinary expenses, we provide Knose members with a 24/7 pet health hotline! Our registered vet nurses are always available to address any urgent concerns about your cat or dog.
Dental illness
- Dental illness is any disease or sickness affecting your pet’s teeth or gums that is not caused by an injury. The following are examples of dental illnesses:
- Gingivitis
- Periodontitis
- Tooth Abscess
- Tooth Decay (Cavities)
- Stomatitis
- Dental Calculus (Tartar)
Dental illness may be covered under Knose Pet Insurance if you choose the optional dental cover during the application process.
Exclusion period (or waiting period)
- Also known as the waiting period, the exclusion period is the time between when you purchase your pet insurance and when coverage starts for specific conditions. During this time, if your pet experiences an issue, it may not be covered. Understanding them will help you know when your coverage truly starts and which conditions may be temporarily excluded. Knose Pet Insurance has different waiting periods depending on the type of condition, such as 1 day for accidents and 14 days for illnesses.
Example: Suppose you purchase a pet insurance policy for your dog, Bella, on January 1st. The policy has a 14-day Exclusion Period for any illnesses. This means that if Bella gets sick during the first 14 days of your policy (from January 1st to January 14th), any vet costs related to that sickness will not be covered by your insurance.
If Bella develops symptoms of an illness after January 14th, and you take her to the vet, the costs for her treatment would be covered, assuming the illness is included in your policy.
If you later decide to upgrade your coverage on March 1st, a new Exclusion Period may apply, and any conditions that arise during that new period would also not be covered until the Waiting Period ends.
You would see all these details outlined on your Certificate of Insurance.
Illness
- Illness is when your pet is sick or has a disease affecting its body or limbs, excluding any injuries or problems with teeth and gums.
Example: If your senior cat has a respiratory infection, that would be considered an illness. However, if your cat broke a leg, that would be an injury, not an illness.
Injury
- Injury is any damage to your pet that happens suddenly due to an accident. It doesn’t include problems that develop slowly over time.
Example: If your dog sprains its ankle after jumping off a high surface, that’s an injury from an accident. But if your dog has arthritis that got worse over several months, that is considered an illness.
Lumps
- Lumps are bumps or swollen areas on your pet’s body, which can include things like tumours, warts, cysts, or abscesses.
Pet
- Pet refers to a cat or dog that you own and live with, as listed on your Certificate of Insurance. This includes companion animals, show pets, and trained assistance animals. However, it does not include dangerous or banned breeds in Australia, or pets used for work, fighting, racing, or law enforcement activities.
Policy
- Policy refers to the insurance contract between you (the Policyholder) and Knose (the insurance company) that outlines your coverage details.
The Policy includes:
- Your Certificate of Insurance
- Product Disclosure Statement (PDS)
- Any application you filled out
- Any documents or updates we provide that change or add to the above
These documents work together as your insurance contract.
Pre-existing condition
- A pre-existing condition is any injury, illness, dental issue, behavioural condition, or specific condition that:
a. First appeared or had symptoms,
b. Was diagnosed or checked by a vet, or
c. You were aware of or should reasonably have known about,
before your pet’s coverage started or before any waiting period ended. If you upgraded your coverage, this applies to any health condition before the change took effect.
Knose does not cover pre-existing symptoms and conditions unless an exception is approved after a pre-existing condition assessment.
Learn more about pre-existing symptoms and conditions.
Premium
- Premium is the amount you pay (not including the Policy fee) for the coverage provided under your Policy. It also includes any required government charges, taxes, and fees.
Renewal period
- Renewal period is the time frame for the coverage under the Renewal Policy.
Renewal policy
- Renewal policy is the pet insurance policy we provide that starts right after your current coverage ends.
Specified Conditions
- Here is the list of specified conditions under Knose Pet Insurance:
- Cruciate ligament damage
- Intervertebral disc disease
- Hip dysplasia
- Patella luxation
- Elbow dysplasia
- Osteochondritis Dissecans (OCD)
- Cherry eye
- Entropion
- Ectropion
- Brachycephalic Obstructive Airway Syndrome (BOAS)
- Lumps (unless your pet was under one year old when your coverage started)
These conditions often have a longer exclusion period. You can apply to reduce the exclusion period for specified conditions by submitting an additional application.
Treatment
- Treatment is the medical care your pet receives from a veterinarian to help heal an illness or injury. This can include hospital stays, surgery, x-rays, medication, tests, nursing, and other necessary care.
Vet
- Vet refers to a licensed veterinarian, veterinary specialist, animal hospital, clinic, or surgery located in Australia. If you travel with your pet, this definition also includes veterinary care received in New Zealand or Norfolk Island for trips lasting up to 60 days.
Tips for first-time pet insurers
Now that you’ve mastered pet insurance terms, we’ve got some valuable tips to share before choosing a pet insurance plan for your furry friend.
1. Insure your pet early
When it comes to pet insurance, the sooner you start, the better! Puppies and kittens are generally healthier and less prone to age-related conditions, allowing you to lock in lower premiums.
Additionally, policies typically exclude coverage for pre-existing symptoms and conditions. So, enrolling while your pet is still young and healthy ensures you won’t miss out on essential protection when it matters most.
2. Choose a trustworthy pet insurance
Choosing the right pet insurance can be daunting, especially for first-time pet insurers, but Knose simplifies the process.
- Easily navigate through coverage options tailored to meet your needs and those of your pets.
- We offer extensive protection to ensure that your pets receive the quality care they deserve.
- We’ve also designed our claims process to be a breeze, with straightforward steps that allow you to focus on what really matters—caring for your pet.
- Our exceptional customer support team is always ready to assist you every step of the way.
Starting early, knowing your policy inside and out, and choosing an award-winning pet insurance like Knose can make a world of difference when it comes to pet insurance. Ready to discover how Knose can help safeguard your pet’s health?
