Choosing the right pet insurance plan can be a challenging task, given the numerous and varied options available and the jargon that so often makes it difficult to understand and compare different plans. To make an informed choice, it’s crucial to understand the various aspects of these plans and find out which plan best suits both your pet’s needs and your budget. Let this guide help you navigate the key factors when you compare pet insurance plans.
1. Standard and Additional Coverage Options
Pet insurance is designed to help offset the cost of unexpected veterinary bills. When comparing pet insurance plans, it’s crucial to carefully evaluate the coverage they offer. This means confirming if the policy includes both accident and illness coverage for your pet. Many plans in Australia also cover hereditary and congenital conditions, provided there were no signs or symptoms of the condition before the policy was purchased and during any applicable exclusion period1.
For those seeking comprehensive plans, some policies offer additional coverage options. These may include protection for dental diseases, specialised therapies, behavioural issues, and prescription medications. Additionally, many plans provide benefits for euthanasia if it is recommended by a vet, and a few even offer a small death benefit if your pet passes away. A limited number of policies also include third-party liability insurance, which may be valuable if your pet causes injury or damage to others.
Routine care add-ons are another consideration for pet owners. These add-ons are often marketed as providing, say, up to $145 per year for routine care items. However, in practice, they typically offer small reimbursements across several categories, such as up to $50 per year for one of 10 listed items, or a set amount for specific services like, up to $10 for heartworm tests or blood screens.
| Among 15 different pet insurance plans in Australia analysed*: |
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| • 11 offer comprehensive accident and illness coverage with benefit percentages typically ranging from 70% to 90% • 7 provide coverage for hereditary and congenital conditions • 5 include specialised options like dental and behavioural therapies |
| The Knose Approach |
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| Knose offers an extensive coverage for accidents, illnesses, hereditary and congenital conditions to help you ensure your pet’s health and well-being. Knose’s core product includes prescription medications, if the treated condition is covered. Knose also provides extensive extras coverage for dental diseases, specialised therapies and behavioural issues. |
2. Exclusions and Limitations
When you compare pet insurance plans, understanding what is excluded is just as important as knowing what is covered. The following are typical exclusions and limitations.
- Pre-existing Conditions: Pet insurance does not normally pay for claims relating to conditions that arose before a policy was bought or during an applicable exclusion period. Insurance is designed to manage the financial impact of uncertain future events. The reason for this is best explained by analogy. You cannot buy insurance for a house after it has burned down or insure your car after it has been stolen. So, you should find out what pre-existing conditions and symptoms of any such conditions your pet has or shown, and how different insurers would handle these in their plans. If you are unsure about pre-existing conditions, your regular vet may be able to help you understand what pre-existing conditions your pet might have.
Over the last few years, pet insurance policies in Australia have seen improvements, with many providers (including Knose) now offering to remove exclusions for certain pre-existing conditions, if they have been successfully treated or resolved after a specified period. Removing of these exclusions are not always automatic and may require you to take certain steps to get cover for those conditions reinstated. Sadly, many conditions are not curable and if a pre-existing condition is not curable, then the cover for that condition cannot be reinstated. Diabetes is an example of a non-curable condition.
- Bilateral Conditions: some conditions, such as Cruciate Ligament Disease or elbow dysplasia are likely to occur on both sides of the body if it is present on one side. Many policies will, therefore, exclude cover for bilateral conditions, so that if signs or symptoms are pre-existing in one side of the body, the same condition occurring on the other side in the future will not be covered.
- Age Limits: While it may sound simple, checking the maximum and minimum age requirements for coverage is important too. Pet insurance in Australia typically limits the maximum age at which a pet can join an insurance plan for the first time. Once they have validly joined, most offer renewals, regardless of the pet’s age.
- Breed-specific Exclusions: Some dog and cat insurance plans may exclude certain pet breeds due to their genetic predispositions. These exclusions were once very popular with insurers. However, most policies in Australia do not have breed-specific exclusions any more. Please read the Product Disclosure Statement (PDS) for the pet insurance plan, to confirm this.
- Annual and Lifetime Limits: The vast majority of polices have a maximum benefit limit that will be paid out. The annual limit is the maximum that will be paid out during a policy year and the amount resets on renewal. Some policies have a lifetime limit in addition to the annual limit. That means that if your pet has had a lot of medical bills and you made claims over the years, they would accumulate over the life of the policy, and you may reach a pay-out cap even if you have not reached the annual limit for the policy period. Choosing the most suitable payout caps per year or over your pet’s lifetime requires you to weigh up your ability to pay premiums with your ability and appetite to pay for veterinary bills, should your pet’s vet costs exceed the limits.
- Sub-limits: In addition to annual and lifetime limits, many policies have pay-out limits for certain conditions or types of bills. Some policies even have lifetime limits per condition. That means even if you have not reached your overall annual or lifetime limit, the policy will not pay towards bills once the sub-limit for a particular condition or treatment type is reached. Sub-limits are set at a lower dollar value than overall annual limits. For instance, a policy with a $11,000 annual limit might restrict benefits for consultations to $300 per
| Among 15 different pet insurance plans in Australia analysed*: |
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| • 13 exclude pre-existing conditions • 8 have specific exclusions for bilateral conditions like cruciate ligament disease • Age and breed-specific exclusions vary significantly among providers |
| The Knose Approach |
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| Knose Pet Insurance, like most pet insurance policies, has an exclusion for Pre-existing Conditions. However, when you insure with Knose, there are no sub-limits. You get the advantage of ”lifetime” cover, which means there are no age limits when it comes to renewals, once your pet has been insured with Knose. However, there are specific age criteria for starting the pet insurance policy. When purchasing a new policy, the minimum age is 6 weeks old, and the maximum age is 8 years and 364 days old. Check if your pet is eligible here. |
3. Financial Considerations
There are several financial considerations beyond the basic monthly premium, when comparing pet insurance plans. As you consider your finances, keep these in mind:
- Premiums: Premiums vary based on factors such as your pet’s species, age, breed, gender, and your location. Some providers even consider other factors, such as your age (the owner), where you got your pet from (breeder vs rescue), if your pet has been de-sexed and how old they were when they were desexed.
- Benefit Percentage: Most policies do not pay 100% of eligible vet bills. Instead, you get the benefit percentage, and the difference between 100% and the benefit percentage is your co-payment amount. Benefit percentages typically range from 70% to 90% of eligible vet bills. Some plans do offer 100% benefit percentage, but they often have a mandatory excess. See below.
- Excess: Most policies offer an optional excess, while others have that as a required element. Excess is the amount you pay towards a covered veterinary bill, before the insurance policy starts paying a benefit. Excess is primarily designed to lower the cost of a policy. You know how much of covered vet bills you will need to pay before the insurance steps in. This amount should be set at a level you can comfortably afford to pay, as there is typically also a co-payment amount (based on the benefit percentage), you need to pay too. All excesses are not equal. Carefully consider the types of excess a provider offers. Knose offers an optional annual excess. You choose your excess level, you pay that portion of eligible vet bills during the policy period (1 year for most, including Knose). Once you have met your annual excess, all eligible vet costs after that are reimbursed at the benefit percentage level (see below). Simple. Other iterations of excess include:
- Per Condition per Year: You must meet the excess for each condition each year before there are benefits payable.
- Per Claim / Per Incident: Each and every time you take your pet to the vet you must meet the excess. Only claims that exceed the excess will have a benefit paid. The average vet bill is ~$300. If you have a mandatory $100 per claim excess, that means that only ~$200 of a typical claim is subject to reimbursement at the benefit percentage level. Some will even apply the benefit percentage rate before the excess, so if the policy has a $100 excess, 80% benefit percentage rate and $100 per condition excess, for $300 eligible veterinary bill, you will only get back $140 (i.e. ($300 x 80%) = $240, less $100 per claim excess = $140).
- Additional Fees: Since these may not be frequently mentioned, ask about any additional fees, such as joining fees, transaction fees, or other costs. While these are more prevalent in the US and UK markets, ask if the premium you are offered is the total price you will pay. All applicable fees should be clearly disclosed in the product’s PDS.
| Among 15 different pet insurance plans in Australia analysed*: |
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| Some pet insurance providers offer varied pricing based on coverage level, with some policies being more expensive due to extensive coverage options. • 11 offer benefit percentages of 70-90% • Premium variations depend on multiple factors, including pet species, age, and breed • 9 require an excess payment as part of their policy structure |
| The Knose Approach |
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| Knose offers competitive premiums that deliver value for extensive coverage. They provide flexible excess options to suit your financial preferences, ensuring you can choose a plan that aligns with your budget. Knose does not have sub-limits nor hidden costs. This advantage allows customers to get up to 90% of an eligible veterinary bill, and they are transparent about any additional fees, ensuring no hidden costs. |
4. Comparing Prices/Premiums
Most premiums are payable monthly and renewed annually. A handful of policies are renewed on a monthly basis, rather than annually.
- Fortnightly premiums: Many providers offer fortnightly premium payment option, in addition to monthly and annual options. It is important to note that fortnightly payments may appear cheaper than they are. This is because we often think about it as two fortnights equaling a month but, in reality, it is 2.17 fortnights in a month. So, a fortnightly premium may appear to be 8% cheaper than the same premium paid monthly.
- Annual premium: Some providers offer annual premium payment option. Confirm if you would receive a discount for paying annual premium upfront. Often the annual premium amount is simply 12 x the monthly premium amount. If you are not receiving a discount for the upfront payment, it is likely that you would be better off having the cash in your bank account, rather than in the insurance provider’s bank account.
- Introductory Offers: Many providers will offer a special introductory offer for joining them, like two months premium free for the first year. Often, this is provided as a 17% (2/12) discount for each monthly premium, rather than actually getting a premium free period of two months. The potential pitfall here is that when comparing different plans, the one that spreads out the free period may appear to be cheaper as the future monthly premiums would be lower than the one with 10 monthly premiums.
Remember that pet insurance is likely to be a long-term commitment as your pet may live upward of 12 years, and because of pre-existing conditions, it may be difficult to switch providers. So, be careful of not selecting a provider simply because they have a strong introductory offer, if they are not likely to be the best provider for you and your pet over the long term.
| Among 15 different pet insurance plans in Australia analysed*: |
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| • 11 provide multiple premium payment options, including fortnightly and annual options • 8 offer discounts for upfront annual payments, though the discount amount varies • 5 have notable introductory offers that reduce the initial premium, but these offers may not represent the best long-term value |
| The Knose Approach |
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| Knose offers flexible payment options including fortnightly, monthly, and annual. They ensure transparency in pricing, with no hidden costs, making it easier for you to budget over the long term. Knose also occasionally offers introductory discounts. |
5. Claim Process
When comparing pet insurance plans, it is important to check not only the benefits, but also how you can make a claim to get the benefit. A smooth and efficient claims process is an important factor for your peace of mind, when you compare pet insurance plans.
- Ease of Lodging Claims: Check if the pet insurance provider offers a straightforward online claim process or if you will have to undergo paper-based claims process. Also, consider if the provider offers for your vet to initiate the claim on your behalf and the other channels you can use to submit claims. For instance, with Knose, you can submit claims online via the customer portal (desktop and mobile). You or your vet can also email Knose to initiate a claim process.
- Claim Turnaround Time: Understand the typical time frames for claim processing and reimbursement. You only want what’s best for your pet, and that means avoiding delays in claim process, during pet emergencies.
- Direct Pay vs. Reimbursement: Some plans offer direct payment to veterinarians, while others require you to pay upfront and get reimbursed later. When a plan states that they offer you to only pay the gap, investigate further to understand how this works in practice and if the promised experience lives up to the hype (e.g. by reading online reviews).
| Among 15 different pet insurance plans in Australia analysed*: |
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| • 10 offer an online claim process • 12 provide direct payment options to veterinarians, simplifying the claim process for pet owners |
| The Knose Approach |
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| Knose has a user-friendly online claim process that makes submitting claims quick and easy. Knose has prompt claim processing and quick reimbursements, to help you get your money back as soon as possible. Knose provides both direct pay and reimbursement options, giving you the flexibility to choose the method that works best for you. |
5. Customer Support and Reviews
When you compare pet insurance plans, remember to consider customer experience. Reliable customer support can make a significant difference in your overall experience.
- Availability of Support: You can never predict emergencies. Look for providers that offer 24/7 customer service, online chat, and email support to address your concerns promptly.
- Customer Reviews and Ratings: Check reviews on platforms like Product Review, Trustpilot, Google, and others to gain first-hand insights into the provider’s reliability and service quality.
| Among 15 different pet insurance plans in Australia analysed*: |
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| • 14 offer 24/7 customer support, ensuring help is available when you need it most • Customer satisfaction ratings vary, with an average rating of 4.2 across platforms |
| The Knose Approach |
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| Knose has earned a 4.6 rating from customers on Product Review as of July 2024, reflecting a strong customer satisfaction and service quality. Knose also has an Australian customer care team who is committed to delivering the highest level of service. As a Knose customer, you also get access and support from a team of registered nurses when you call Knose Pet Health Hotline. |
6. Additional Benefits
Some pet insurance plans offer extra benefits that can add value that is important when you are comparing different pet insurance plans.
- Wellness Programs: Some providers offer benefits like dental care, behavioural therapy, and wellness exams that can greatly contribute to your pet’s overall well-being.
- Pet Insurance Promos and Discounts: Discounts can really help you make the most out of pet insurance plans. Providers with promos would be a great choice over those who don’t offer any discounts.
- Travel Coverage: If you love travelling with your pets, consider whether the plan provides coverage for your fur babies when travelling domestically or internationally.
| Among 15 different pet insurance plans in Australia analysed*: |
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| • 8 offer comprehensive wellness programs that can contribute to overall pet well-being • 6 provide travel coverage for pets, offering peace of mind during trips |
| The Knose Approach |
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| Knose wellness programs are designed to keep your pet healthy and happy, offering benefits such as Pet Care Plans, which is separate from Knose Pet Insurance Plan. Knose also provides attractive pet insurance promos and discounts, making it more affordable to insure all your pets. Additionally, Knose Pet Insurance includes travel coverage for vet costs during overseas travel to New Zealand and Norfolk Island for trips of not more than 60 days |
Where to compare pet insurance plans
When you compare pet insurance plans, use reliable comparison sites to make the process easier and more efficient. You can find Knose, along with other providers, in platforms like Product Review, Finder, Canstar, Mozo, and WeMoney which offer detailed comparisons of various pet insurance plans. You can research different options based on coverage, cost, customer reviews, and additional benefits. These sites can help you make an informed decision by comparing the strengths and weaknesses of each plan.
Your Best Choice for a Pet Insurance Plan
When you compare pet insurance plans, it’s essential to look beyond the surface and deeply understand what each plan offers. By considering all the factors mentioned above, you can choose a plan that best fits your pet’s specific needs and your budget.
Remember, looking for the best pet insurance plan may take some time, but it could be worth investing your time doing the homework.
Sources:
- CHOICE: Compare Pet Insurance Products
- Finder: Pet Insurance Comparison
- Product Review: Pet Insurance
- Mozo1: Best Pet Insurance 2024
- Mozo2: Press Release – Australia’s Best Value Pet Insurance 2024
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Post by Knose Pet Insurance in collaboration with Yvette Balita
Yvette Balita is a fur parent to Shinx, a 6-year old Jack Russel, along with multiple cats, and even chickens! Growing up with all kinds of farm animals in her neighbourhood, she takes pride in coming up with unique pet names. The animals around her also give her a grounded perspective on the natural cycle of pet life and pets’ needs. Drawing from her personal journey and hands-on experience as a pet owner, Yvette contributes insights for pet owners seeking to care and protect their furry family members.
*15 different pet insurance plans compared are as follows:
| Knose Pet Insurance | Medibank Pet Insurance | Coles Pet Insurance |
| Petplan | Bupa Pet Insurance | HCF Pet Insurance |
| Bow Wow Meow | Woolworths Pet Insurance | Australian Seniors Pet Insurance |
| RSPCA Pet Insurance | Real Pet Insurance | Guardian Insurance |
| Pet Insurance Australia | Petsy Pet Insurance | Petcurean Pet Insurance |
- Some policies will use the term, waiting period, instead of exclusion period. This should not be confused with how waiting periods operate in private health insurance for humans. They are usually different. This is subject to policy terms and conditions. ↩︎
