How to Compare Pet Insurance in Australia

By Jay Fan · Pet Insurance Analyst · Updated July 5, 2026 · About the author

Annual limit vs per-condition limit

The headline number every insurer advertises is the annual limit. $12,000, $15,000, $20,000, $30,000. It sounds simple. But some insurers use an annual limit across all conditions while others use a per-condition limit combined with a lower total annual limit.

Here is the difference: An annual limit of $20,000 means the insurer will pay up to $20,000 total across all claims in a policy year. A per-condition limit of $5,000 means the insurer caps each specific condition at $5,000, even if you have a $20,000 annual limit.

If your cat needs kidney disease management and hyperthyroidism treatment in the same year, a per-condition limit could leave you paying thousands out of pocket. Always check whether the limit is per-condition or across all conditions. Bow Wow Meow uses an overall annual limit with no per-condition sub-limit for most conditions, which is the most straightforward and beneficial structure.

Reimbursement percentage and excess

Standard reimbursement levels are 70%, 80%, or 90% of eligible vet bills after the excess. A higher reimbursement percentage means a higher premium, but the gap matters more as bills get bigger.

On a $10,000 claim: 70% reimbursement leaves you paying $3,000 out of pocket. 80% leaves you paying $2,000. 90% leaves you paying $1,000. The 10% difference between 80% and 90% on that one claim is worth an extra $15-$25 per month in premium.

The excess is the amount you pay before insurance kicks in. Standard excesses range from $50 to $200 per claim. Some insurers have an annual excess, others charge per condition or per visit. An annual excess is better than a per-condition excess because once you hit it for the year, all subsequent claims in that year have no excess.

Waiting periods — the hidden trap

Waiting periods are the time between taking out a policy and being able to claim. The standard waiting periods in Australia are: Accidents: 24 to 72 hours. Illnesses: 14 to 30 days. Hereditary conditions: 30 days to 6 months. Cruciate ligaments: 6 to 12 months (some insurers).

The waiting period trap is that many people buy insurance when their pet is already sick, expecting coverage immediately. It does not work that way. If your dog develops a limp on day 10 and you bought insurance on day 1, the 30-day illness waiting period means that limp is not covered.

Some insurers impose symptom-based waiting periods, meaning even the symptoms cannot appear during the waiting period, not just the diagnosis.

Sub-limits — the fine print that costs you

Sub-limits are caps on specific items within a policy. They are the most deceptive feature in pet insurance. A policy advertises a $20,000 annual limit but has a $500 sub-limit on dental, $1,000 sub-limit on cruciate ligament surgery, and $200 sub-limit on consultation fees. You buy the policy thinking you have $20,000 of cover, but you actually have much less.

Common sub-limits to watch for: Consultation fees ($150-$300 per consult). Diagnostic testing ($500-$1,000 per condition). Hospitalisation ($1,000-$2,000 per condition). Dental illness ($200-$1,000 per year). Cruciate ligament surgery ($1,000-$2,500). Prescription medication ($200-$500 per year).

The only way to find sub-limits is to read the Product Disclosure Statement (PDS). The marketing page will not show them. A $20,000 policy with no sub-limits is better than a $30,000 policy with $1,000 sub-limits on everything that matters.

Exclusions — what is not covered

Every policy has exclusions. The standard exclusions are: Pre-existing conditions (anything noted before the policy started). Routine care (vaccinations, worming, desexing, dental cleaning). Grooming and boarding fees. Behavioural training.

Some policies have additional exclusions: Breed-specific conditions (some budget insurers exclude hip dysplasia for large breeds). Bilateral conditions (if one knee has cruciate disease, the other knee may be excluded). Hereditary conditions (budget policies exclude these entirely). Hip dysplasia (some policies have a specific 6-month waiting period for hip dysplasia claims).

The exclusions section of the PDS is short but dense. Read it twice. If you cannot find the exclusions section easily, that is a red flag.

Premium structure and renewal terms

Pet insurance premiums are not fixed. They increase every year as your pet ages. Some insurers increase by 10-20% per year, others by 5-10%. The difference compounds significantly over your pet's lifetime.

A policy that costs $30/month at age 1 might cost $80/month at age 10 with one insurer but only $60/month with another. Factors that affect premium increases: Your pet's age band (most insurers increase at each birthday). Your claims history (some insurers apply no-claims discounts, others increase premiums after a claim). Your postcode (some insurers adjust premiums based on regional claims data). Your chosen excess and reimbursement level.

The renewal terms are also important. Can the insurer change your policy terms at renewal? Most can. Can they remove coverage for specific conditions at renewal? Some can, especially if you filed a claim. Can they refuse renewal? Most do not, but some do. Read the renewal guarantee in the PDS.

Why the cheapest policy is rarely the best

The cheapest pet insurance on the market costs about $12-$15 per month for a cat. It likely has: A low annual limit ($5,000-$8,000). Per-condition sub-limits on everything. Exclusions for hereditary conditions. A 6-month waiting period for cruciate ligament issues. Increasing premiums that start low but jump sharply at each renewal. Limited coverage for diagnostic testing.

Compare that to a mid-range policy at $25-$30 per month for a cat with: A $15,000-$20,000 annual limit. No per-condition sub-limits. Hereditary condition coverage included. Standard 30-day waiting periods. Dental illness coverage. More stable premium increases.

The $12/month policy saves you $156 per year. But if your cat needs one $5,000 surgery that is not fully covered because of sub-limits, you lose thousands. Insurance is not a subscription you want to minimise cost on. It is risk transfer. The cheapest policy transfers the least risk.