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Bringing a new puppy or kitten home is a whirlwind of joy, responsibility and, inevitably, paperwork. Among the documents your breeder or insurer hands you is the Product Disclosure Statement, or PDS. It’s easy to skip over this booklet when you’re busy toilet training and researching the best chew toys, but the PDS is your roadmap to what your pet insurance will (and won’t) do when you need it most. Taking the time to read and understand it can save you thousands down the track, and it gives you the peace of mind you were looking for when you first decided to insure your pet. In this guide we’ll walk you through the key sections of a PDS, explain why each matters and show how reading the fine print empowers you to choose cover that suits your family and budget.
What is a PDS and why should you read it?
A PDS is the legal document that sets out the terms, conditions and features of your insurance policy. According to consumer advice site Choosi, a PDS explains what’s covered, what isn’t, your duty of disclosure, cooling‑off rights and the claims process. It also contains a glossary so you understand the jargon. In short, it’s a contract between you and the insurer. If you’ve never bought pet insurance before, think of the PDS as your user manual: the more familiar you are with it, the less likely you are to be caught off‑guard when your dog swallows a sock or your kitten fractures a leg.
When reading a PDS, don’t worry if you don’t understand every clause on the first pass. Focus on the high‑level concepts—coverage, exclusions, limits, waiting periods, and claims—and then go back to the details that matter most to your situation. Many people never look at their PDS until they’re making a claim; by then it’s too late to discover that a specific condition or treatment isn’t covered. As a new pet parent, you have the advantage of time—use it to your benefit.
Coverage inclusions and exclusions
Every pet insurance policy has its own list of inclusions (what’s covered) and exclusions (what isn’t). The PDS spells these out in detail so you know exactly which accidents and illnesses are eligible for reimbursement and which are not. MoneySmart, an Australian Government resource, points out that policies may exclude hereditary conditions, breed‑specific issues, behavioural problems, pregnancy and grooming. Some policies also exclude dental illness or only cover it as an optional extra. If you’re a Labrador parent, for example, you need to know whether hip dysplasia is covered; if you’re adopting a French Bulldog, breathing issues may be a concern. Checking the exclusions allows you to plan ahead or shop around for a policy that includes the conditions you’re most likely to claim on.
PetsOnMe’s Deluxe Plan includes cover for dental illness and hereditary conditions, which many basic plans do not. It also has no sub‑limits on consultation fees, meaning your vet’s bill for exams and consultations is reimbursed up to your annual limit. When comparing policies, look for these differences in the PDS and weigh their importance relative to your pet’s breed, age and lifestyle. An exclusion might seem minor until you’re faced with a $3,000 dental extraction or a chronic skin condition.
Pre‑existing conditions and your duty of disclosure
Insurers use the PDS to explain their definition of pre‑existing conditions and your duty to disclose them. MoneySmart notes that pet owners must tell their insurer about any past or present health issues; failing to do so may lead to rejected claims. The RSPCA Pet Insurance FAQ defines a pre‑existing condition as anything that first occurred before your policy started or during the waiting period, including related or bilateral conditions. Temporary conditions, such as a skin rash or ear infection, may be reviewed after 18 months if your vet certifies they’ve been symptom‑free.
As a responsible pet owner, it’s tempting to gloss over a minor issue to secure coverage quickly. Resist that urge. Disclosing existing conditions doesn’t always mean they’ll be permanently excluded. Some insurers, like PetsOnMe, will consider covering pre‑existing conditions after they’ve been treated and symptom‑free for a period. Even if a condition remains excluded, you’re better off knowing so you can budget accordingly rather than being blindsided during a claim.
Waiting periods
Most policies include waiting periods, a window of time between when you purchase the policy and when certain benefits begin. MoneySmart explains that accident cover may start immediately, but illness cover often has a 30‑day waiting period; some conditions, like cruciate ligament injuries, have longer waiting periods of up to six months. The PDS will list the exact waiting periods for each benefit so you know when cover kicks in.
Waiting periods protect insurers from fraudulent claims, but they also protect you from paying premiums on cover you can’t use yet. When you’re bringing home a puppy that’s bouncing off the walls, you want to know exactly when you can claim for its antics. If your breeder provides eight weeks of free pet insurance through PetsOnMe’s breeder programme, the timing can bridge the gap between purchase and the end of waiting periods on your new policy. By reading the PDS, you’ll understand how these periods align and avoid paying out of pocket unexpectedly.
Benefit caps and sub‑limits
Your PDS will state your annual benefit limit—the maximum amount the insurer will pay in a policy year—and any sub‑limits on specific conditions or treatments. Vets Choice explains that sub‑limits are ceilings for certain conditions, such as $2,000 for tick paralysis or $1,000 for dental work. If your claim exceeds a sub‑limit, you must pay the difference yourself. These caps can leave you thousands out of pocket if your dog needs an expensive surgery like a cruciate ligament repair, which can cost $3,000 to $4,000, or a hip replacement, which can exceed $5,000.
Commbank’s pet insurance PDS, for example, limits consultation fees to $400 per policy period and cruciate ligament conditions to $4,000 per leg. Tick paralysis treatment is capped at $4,000 per policy period and hip joint surgery is capped at $4,000 per hip. When comparing policies, check both the overall annual limit and sub‑limits relevant to your breed. PetsOnMe’s policies have a generous annual limit (up to $20,000), no sub‑limits on vet consultations, and coverage up to the annual limit for major surgeries, giving you more certainty about how much you’ll be reimbursed.
Benefit percentage, excess and co‑payment
A policy’s benefit percentage refers to how much of an eligible vet bill the insurer will reimburse, after subtracting any excess. Most Australian pet insurance policies refund 70–90% of eligible costs. A higher reimbursement percentage means you pay less out of pocket at claim time, but it typically comes with a higher premium. The excess is the amount you pay toward each claim before the insurer starts reimbursing. Some policies have a fixed dollar excess (e.g., $200), while others may have a co‑payment that requires you to pay a percentage of the total bill.
Your PDS will explain how excesses and co‑payments apply to different claim types. Consider choosing an excess that matches your budget and your risk tolerance. For example, if you have savings to cover small vet bills, a higher excess can reduce your premiums. But if you’d struggle to pay a sudden $1,000 surgery, selecting a lower excess and a higher reimbursement percentage may be worth the extra premium.
Age, breed and location factors
Premiums aren’t one‑size‑fits‑all. Some insurers price premiums based on age, breed and location, as well as the cover you choose. Certain breeds are more prone to hereditary conditions or accidents, and some regions have higher vet costs. Older pets generally have higher premiums because they’re more likely to need costly treatment. Understanding these factors helps you set realistic expectations when shopping for a policy.
At PetsOnMe, premiums are calculated using data for each breed and location, not your personal claims history. That means your policy won’t get more expensive just because you made a claim last year. We also offer discounts to reward responsible owners: pay annually and you’ll receive 5% off your premium, and add a second pet to your policy for another 5% discount. Puppies and kittens under one year receive two months’ free cover when you take out a new policy, while pets over one year receive one month free. You can also choose to pay fortnightly, monthly or annually, depending on what suits your cash flow.
Claims process and customer service
The PDS should explain how to make a claim, what documents you need (such as itemised vet invoices and clinical notes) and how long the insurer typically takes to process claims. MoneySmart suggests looking at whether the insurer offers a simple online or app‑based claims system and whether you can claim gap‑only at participating vets. Some insurers require you to pay the full bill up front and wait for reimbursement; others, like PetsOnMe, are partnering with vets to provide gap‑only claims so you only pay your share at the counter.
Also consider the quality of customer service. When your pet is unwell, you want a friendly human on the line, not a robot. PetsOnMe prides itself on fast claims and genuine human support, so you can talk to someone who understands your worry and resolves your query quickly. Reading reviews and speaking with current policyholders can help you gauge service quality. In your PDS, look for details about dispute resolution and how to contact the insurer if you’re unhappy with a claim outcome.
Cooling‑off period and policy changes
Almost every pet insurance policy includes a cooling‑off period, usually 21 days, during which you can cancel the policy and receive a full refund if you change your mind. The PDS will outline how to cancel and whether any waiting periods still apply if you reinstate later. Understanding the cooling‑off period is helpful if you’re still deciding which policy suits you best.
The PDS also explains how to upgrade or downgrade cover, add optional benefits, or increase your annual limit. PetsOnMe allows you to change your plan or cancel any time without penalty, giving you flexibility as your pet’s needs evolve. If you adopt a second pet or your dog develops a chronic condition, adjusting your cover is straightforward and transparent.
Optional extras and special benefits
Some insurers offer optional extras such as dental cover, complementary therapies, routine care or overseas cover. Commbank’s pet insurance offers an optional Booster Care package covering dental, behavioural therapy and alternative treatments. While routine care extras can provide peace of mind, the cost may outweigh the benefits if you’re not using the services regularly. With PetsOnMe, dental illness is included in the Deluxe Plan, and we no longer offer a routine wellness package to new customers. When reading the PDS, decide which extras you’ll realistically use and whether they justify the additional premium.
Bringing it all together
Reading a PDS might sound dull, but it’s the best way to ensure you’re buying the security you think you are. Start by skimming the summary section; then focus on inclusions, exclusions, pre‑existing conditions, waiting periods, benefit caps and the claims process. Use a highlighter or take notes. Ask your breeder or vet for guidance if something isn’t clear; they’ve likely seen a range of policies and can point out pitfalls.
Remember, pet insurance isn’t a one‑size‑fits‑all product. Your policy should reflect your pet’s breed, age and lifestyle, and your own financial comfort level. Look for transparency, fair coverage and customer service that makes you feel valued. PetsOnMe strives to tick those boxes: our policies have no consultation sub‑limits, include dental and hereditary cover, offer flexible payments and multi‑pet discounts, and base premiums on breed and location rather than claim history. We process claims quickly and provide real human support when you need it most. Take a moment to explore our pet insurance plans and common complaints & solutions pages to see how we differ.
Ultimately, understanding your PDS gives you the confidence to make informed decisions and ensures that when life throws a curveball—whether it’s a broken paw or a swallowed sock—you can focus on your pet’s recovery rather than your bank balance. Investing a little time now will pay off in peace of mind for years to come.
