Pet Insurance Excess Explained
Last updated: June 11, 2026
Your excess is the amount you pay before the insurer pays anything. Choosing the right excess level is the easiest way to control your premium. Most people pick $0 because it feels safer. That is usually a mistake.
How Excess Affects Your Premium
The Two Types of Excess
Fixed Excess
You pay a set dollar amount per claim. RSPCA, Petsy, and most Australian insurers use this model. A $500 excess means you pay the first $500 of every claim.
Percentage Excess
You pay a percentage of each claim. Less common in Australia. Some senior pet policies add a 20-35% co-payment on top of the fixed excess.
The Smart Excess Strategy
Pet insurance is for big, unexpected costs. Not for $200 vet visits. If you can afford a $500 excess, take it. You save $228/year on premiums (using the Golden Retriever example above). Over 10 years, that is $2,280 saved.
You only lose out if you make multiple small claims per year. But most pet insurance claims are either under $500 (where excess eats the benefit) or over $3,000 (where the $500 excess is a rounding error).
The exception: if your pet is a breed with chronic, medium-cost issues (like skin allergies requiring $200-400 visits every 2 months), a $0 excess might actually pay off. Run the numbers on your specific situation.
