1300 489 873
When you’ve just brought home a wriggly bundle of fur, it’s tempting to skip ahead to the fun bits: toys, treats and that perfect Instagram name. But there’s one more adult decision you’ll face almost immediately: *do I need pet insurance, and how cheap can I go?* As a new puppy owner, budget‑stretching is real, yet we also know vet bills for broken bones, gastric upsets or skin infections quickly run into the hundreds or even thousands.
Many insurers dangle “accident‑only” or budget policies at low weekly costs. On paper they look like a great way to keep costs down. But as breeders and vets will tell you, a cheap policy can cost you more in the long run. Below we unpack the hidden factors behind those low premiums – and why the right insurance isn’t always the cheapest.
The limitations of budget policies
1. Low benefit limits & multiple sub‑limits
Cheap pet insurance policies often sit inside a home and contents policy. Their premiums are low because their payout caps are low too; you may only be able to claim around $750–$1,000 per claim after paying your per‑condition excess. These caps might cover minor injuries but will leave you paying out of pocket for major treatments such as surgery, cancer care or chronic conditions.
2. High excesses and per‑condition charges
An excess is the amount you pay before your insurer reimburses you. Many budget policies attach high excesses – sometimes between $100 and $500 – for each new condition every year. If your puppy develops allergies and then later suffers an ear infection, you’ll pay that excess twice. Paying a little more in premiums can often save much larger amounts at claim time.
3. Illness exclusions
Some of the cheapest policies only cover accidents and exclude illnesses altogether. This is risky because the majority of veterinary claims are illness‑related. Common claims include gastrointestinal upsets, skin allergies and urinary tract disorders. Accident‑only policies won’t reimburse you for these issues. Finder’s guide on accident‑only pet insurance notes that while it covers some accident‑related treatments, the trade‑off is you’re not covered for illnesses and annual limits are usually lower.
4. Routine care and dental often excluded
Even accident‑only policies that do pay for injuries typically exclude elective treatments, dental procedures, behavioural problems and everyday costs like grooming or bedding. If your dog fractures a tooth or develops anxiety‑related injuries, you may end up footing the entire bill.
5. Low annual limits and sub‑limits
Cheap policies might reimburse only 60–80 % of your vet bill and cap the total annual payout. Finder’s comparison explains that when comparing policies, you need to look closely at how much you will be reimbursed per treatment and the total amount you can claim each year. Low sub‑limits mean that even if your overall annual limit seems reasonable, individual conditions could still exceed the maximum payout.
Why premiums vary
Australian premiums are set by actuaries who look at more than just the cost of claims. Breed and location matter: some breeds have inherent health risks and may be more expensive or harder to insure. Where you live also affects premiums because vet fees and disease prevalence differ by region. Age plays a role too; it’s cheapest to insure your pet when it’s young and keep cover for life. Insurers often charge higher premiums as pets age due to increasing health needs.
Many new owners worry that a claim will make their premium skyrocket. At Petsonme we don’t penalise individual claims – instead, we use internal breed‑ and location‑based data to fairly price premiums for all pets. Your personal claim history does not affect your renewal rate, and we don’t adjust premiums based on whether your pet is desexed. Our focus is on accurate risk assessment rather than one‑size‑fits‑all increases.
Value vs cost: what to look for
Comprehensive accident & illness cover
Government site MoneySmart recommends considering whether accident‑only cover is appropriate for your pet and warns that add‑on policies from home and contents insurers may not be as comprehensive as stand‑alone pet policies. Comprehensive plans cover accidents, illnesses and often preventative care (such as vaccinations and worming). They may seem more expensive upfront but often provide better value because they protect against the illnesses most likely to occur.
Appropriate benefit caps & reimbursement levels
When comparing policies, check the annual benefit cap and reimbursement percentage. Higher caps mean more protection if something serious happens, and a generous reimbursement (up to 80 % or 100 %) ensures you’re not left with a large bill. MoneySmart advises checking annual limits and sub‑limits and understanding waiting periods and policy exclusions.
Transparent policy wording
Look for insurers that are upfront about exclusions and waiting periods. Many exclusions are standard – bilateral conditions, elective treatments, illnesses during waiting periods and diseases with existing vaccines – but some policies exclude common skin conditions or tick paralysis. Read the Product Disclosure Statement (PDS) carefully and choose a policy that offers clarity rather than surprises.
Insure early and stay covered
Because premiums increase with age and some breeds have higher risk factors, the best time to insure your pet is now. Once your puppy has a pre‑existing condition it may be excluded from new policies, and waiting periods mean you could be unprotected if you delay.
Why Petsonme isn’t the cheapest – and why our customers stay
Cheap insurance can leave you fighting fine print when your pet needs care most. At Petsonme we believe peace of mind is worth a few extra dollars per week. Our policies are designed for new puppy owners referred by breeders who trust us to provide human support and fast claims. Here’s why our customers see value beyond price:
- Breed‑ and location‑based pricing: We analyse breed health data and your postcode to offer fair premiums without penalising you for making claims.
- Broad cover: Our policies include accidents, illnesses, hereditary conditions and optional routine care, giving you confidence that the most common issues are covered.
- Fast, fair claims: Our claims team is staffed by pet lovers who aim to process claims quickly and reimburse you promptly. We don’t attach large per‑condition excesses or hidden sub‑limits, so there are no nasty surprises.
- Genuine discounts: We offer a 5 % discount when you pay annually and another 5 % multi‑pet discount when you add more than one pet to your policy. If your pup is under one year old, you’ll get two months free; older pets still receive one month free when you start a new policy.
- Human touch: Our customer service is focused on empathy and problem‑solving. When you call, you’ll speak to a person who loves pets and understands how stressful an emergency can be.
The verdict: it’s not just about the cheapest premium
Opting for cheap pet insurance may seem like savvy budgeting, but low premiums often come with strings attached: low claim limits, high excesses and, most importantly, exclusions for illnesses and routine care. Since illnesses make up the bulk of claims, an accident‑only or budget policy might leave you paying the full cost when your pup needs help the most.
A comprehensive policy from Petsonme is designed to be simple to understand and quick to deliver support when you need it. We price fairly based on breed and location, not claim history, and we offer meaningful discounts that help offset your premium without compromising cover. For first‑time puppy parents who value peace of mind, breeder‑endorsed quality and human service, that’s a bargain worth considering.
Want to explore how a Petsonme policy could fit your puppy? Visit petsonme.com.au for a no‑obligation quote and discover why our community of responsible pet owners choose value over “cheap”.
