Australians skip pet insurance amidst cost hikes

Yet, a quarter of Australians have spent up to $3,250 out of pocket vet care.

Australia’s pet parents have decided to not insure their pets thanks to rising cost of living, putting a higher risk of high vet and medical expenses in the long run.

Since 2020, the average cost of acquiring a pet has surged by 196%, but a new survey from Budget Direct revealed that many owners are prioritising other expenses over their pet's insurance.

More than 60% of Australian respondents do not have pet insurance. Among those who do, nearly 10% were unable to claim anything on their vet bills, whilst almost 20% of 18-27 year-olds claimed up to 20% of their bill. 

In Western Australia, nearly 12% of respondents were able to claim up to 80% of their vet bills through insurance.

Jonathan Kerr, Chief Growth Officer at Budget Direct, emphasised the long-term risks of leaving pets uninsured.

According to the survey, nearly a quarter of Australians have spent up to AU$5,000 ($3,250) out of pocket for veterinary care. The largest ongoing expense for pet owners is food (69%), followed by vet bills, which account for 18% of total costs.

Nearly 70% of Australians surveyed reported spending most of their pet-related expenses on food for their pets, a figure that has risen by almost 10% since a similar survey in 2021. In Western Australia, eight in 10 respondents reported that pet food was their largest expense. 

Before reimbursement from pet insurance, over a third of Australians surveyed faced vet bills up to AU$500 ($325), nearly a third paid up to AU$1,000 ($650), and a quarter had bills as high as AU$5,000 ($3,250)—consistent with findings from the 2021 survey. 

When asked about spending to save a pet's life, over 50% of respondents said they would not be prepared to spend AU$10,000 ($6,500) on medical treatment. 

In contrast, 50.43% of female respondents and more than 60% of 18-27 year-olds would be willing to spend that amount to keep their pets alive.

Kerr pointed out the lack of public health systems for pets, leaving owners with two options: paying vet bills out of pocket or recovering costs through private pet insurance. "Pet insurance is a way for dog and cat owners to manage the cost of unexpected vet visits due to illness or accidents," he noted.

($1.00 = AU$1.53)