Aussie Vet Breaks Down Pet Insurance Options and Budget-Friendly Alternatives
As a veterinarian, one of the most common questions I’m asked is whether pet insurance is worth it. The answer is: it depends! (annoying I know, but hear me out 😊) While pet insurance can provide peace of mind, it’s a personal decision – you have to choose what’s right for you and your furry family.
In today’s economic climate, with rising costs of living, it’s super important to evaluate all your options when it comes to managing the health and well-being of your beloved four-legged family members, the same way you do for your two-legged family.
At VetChat, we’re here to help you make informed decisions about pet care, including whether pet insurance or more affordable alternatives like VetChat Plus might be right for you (more about that below 😉)
The Rising Costs of Veterinary Care in Australia
Veterinary care costs can vary widely depending on the type of care and the situation however it’s important to be realistic about Vet costs and plan ahead.
According to a report from CHOICE, vet visits for standard check-ups, vaccinations and dental cleaning can range from $200 to $600. However, for more serious incidents, costs can escalate quickly. For example:
| Treatment | Possible cost |
|---|---|
| Treating a broken leg | $2,000 – $5,000 |
| Surgery for torn ligament | $3,000 – $10,000 |
| Cancer treatment e.g. surgery, chemotherapy | $5,000 – $15,000 +++ |
These costs reflect the complexity of modern veterinary medicine, which is on par with human healthcare in terms of expertise and equipment.
Don’t forget – there is no Medicare for pets 😲 (yet! Hopefully one day!) and veterinary practices must cover all expenses for diagnostics, surgeries, and treatments, which drives up costs.
Inflation and Veterinary Costs
In recent years, the cost of veterinary care has increased, in part due to inflation and the rising cost of medical supplies, equipment, and technology. Vets also face increasing business overheads, from rent to staff wages, all of which impact the fees you pay.
According to ASIC’s Moneysmart website, Pet owners can expect to pay $3,218+ a year to care for a dog and $1,715+ a year to care for a cat. This doesn’t include possible vet bills from unexpected accidents or illness 🤑!
A surprise car accident or retrieving a swallowed food wrapper can be expensive so you want to plan ahead to make sure your furry family member will have the care they need when they need it most. (Ps – this is why we created VetChat Plus – so you have some financial cover in your back pocket when you need – more on that here).
For many Aussies facing significant cost of living pressures, these escalating costs can be stressful and some people sadly have had to sacrifice their pets. With rising housing prices, food bills, and utilities, unexpected vet bills can feel overwhelming – which is why you need a plan.
As Vets, we know that affordability prevents many people from speaking to a Vet – which is why we created VetChat, so more Australians can access a real Aussie vet online to get expert advice when they need it.
“We created VetChat so more Australians can access a real Aussie vet online to get expert advice when they need it”
– Dr Claire Jenkins
Pros and Cons of getting Pet Insurance
Pet insurance can serve as a financial safety net for unexpected vet bills, but like any investment, it comes with pros and cons:
Pros of Pet Insurance:
- Helps cover large, unexpected vet bills (e.g., emergency surgeries or treatments, which can easily cost between $2,000 and $10,000).
- Can cover ongoing treatments for chronic conditions like diabetes or arthritis, which can cost several thousand dollars a year.
- Flexibility to choose your preferred vet or specialist without worrying about the upfront cost.
Cons of Pet Insurance:
- Premiums can be expensive🤑😲, starting from $20 to $60 a month, but potentially rising to over $100 per month as your pet ages.
- Pre-existing conditions are often excluded, which can leave you covering large expenses out of pocket.
- Most policies don’t cover routine care – this will be an out-of-pocket expense, or you may have to pay extra to add it to your policy
Policies often have sublimits or annual limits on common items such as tick paralysis, meaning even if you’re insured, you may still face significant out-of-pocket costs.
How to know if Pet Insurance is right for you?
Whether you get pet insurance is a decision that needs to be right for you. Make sure you consider some of the common aspects of insurance when you are comparing policies:
- Does the policy you are considering have sublimits? Many policies have sublimits on specific treatments or conditions, meaning even if your overall claim is within your policy limit, you could be out-of-pocket if a specific treatment is capped. For instance, an insurance policy may only cover $1,000 for dental work, even if you have a $10,000 overall limit.
- How old is your pet? Insurance premiums often increase as your pet ages. A younger pet might have a lower premium, but the cost can rise significantly, sometimes doubling or tripling as your pet becomes a senior. Many policies don’t cover pets after 10 or even 8 years old!
- Does your pet have pre-existing Conditions? If your pet has any existing health issues, it’s important to know that these likely won’t be covered. For example, a pet that has been previously diagnosed with arthritis might need long-term care, which you would need to fund yourself.
- Do You Have Multiple Pets?: Pet insurance policies generally only cover one pet per policy, meaning if you have multiple pets, the costs can add up. Some companies may offer discounts for multiple pets, or check out VetChat Plus (discussed more below) which includes up to 5 pets.
Alternatives to Pet Insurance
If the rising cost of premiums or the limitations of pet insurance don’t seem right for your situation, there are other alternatives to consider to make sure you are financial prepared for possible vet costs:
1) Savings Plans for Vet Bills
One option is to create a savings plan specifically for vet bills. By putting away a set amount each month into a specific account, you can build a financial cushion to cover routine care and unexpected emergencies.
Considerations for Savings Plans:
- How Much to Save: Given that vet emergencies can cost between $2,000 and $15,000, aim to save at least $100 per month. Over time, this can accumulate to provide a robust fund for unforeseen events.
- Discipline Required: To make this plan work, it requires regular, disciplined contributions, even when your pet is healthy. Unexpected accidents can happen at any time, so building that fund early is important. Consider whether saving the amount of money that may actually be required is actually feasible for you.
- No Premium Increases: Saving your own fund means you avoid increasing premiums which happen as your pet ages if you have traditional pet insurance. You also have complete control over how the money is spent, without exclusions for pre-existing conditions.
2) VetChat Plus – An Affordable Alternative to Pet Insurance
For pet owners looking for an affordable, flexible option, VetChat Plus might be right for you. With our first-of-it’s-kind membership, you get unlimited access to Aussie Vets via video at an affordable price – just $259 per year or $25 per month. Plus, as a free benefit of being a member, you get $10k per year basic financial cover for vet costs for 5 common incidents for when the unexpected happens. Designed by Aussie Vets to give more Australians access to simple care for their furry family members.
Benefits of VetChat Plus 😊
- ✔️Basic financial cover: Easy to understand – you get up to $9,500 back on Vet costs if any of the 5 covered incidents happen. Up to 3 claims per year, simple excess of $500 per claim.
- ✔️One affordable price, no increases: VetChat Plus is one affordable price- just $259 per year. Traditional pet insurance is often at least 50% more expensive, with premiums going up as your pet ages.
- ✔️Covers 5 common events: Claim for vet expenses at the clinic for Car accidents 🚗, Swallowed objects (like socks! 🧦), Poisoning (e.g. choccie 🍫 or rat baits), Snake bites 🐍 and Tick Paralysis🕷️.
- ✔️Includes up to 5 pets: One membership includes your whole pet family, making it an affordable option for multi-pet families. Pet Insurance generally must be purchased per pet.
- ✔️Claim at any clinic: unlike some Pet Insurance options, you can claim for expenses at any clinic – including your local family Vet who knows your Pet best
- ✔️No Sublimits, no pre-existing conditions: VetChat Plus covers 5 common incidents with no sublimits, and no pre-existing conditions – so you can get the maximum value out of your membership and know your pet is covered even if they have had incidents or health issues before.
- ✔️No pet age limits: a great option for senior pets – we welcome pets of all ages and the price won’t increase in cost as your pet gets older, unlike many pet insurance options.
Proactive care will save you $ in the long term🤑 VetChat Plus gives you access to expert veterinary advice affordably. By consulting with a VetChat vet online regularly, you can prevent more serious health issues down the road and avoid the hefty costs that come with major emergencies – plus get savings from exclusive discounts.
Which Option is Right for You?
In today’s economic climate, managing pet care costs is more important than ever – you don’t want to be left unable to afford care when your beloved pet is unwell. Whether you opt for pet insurance, a savings plan, or VetChat Plus depends on your financial situation, your pet’s health, and your lifestyle.
- If you’re worried about major emergencies, want a comprehensive option and can afford the premiums, pet insurance might be worthwhile.
- Alternatively, a savings plan can provide flexibility and control over your pet’s healthcare, but requires discipline and planning.
- For 24/7 vet advice and benefits including simple financial cover, VetChat Plus is an excellent, affordable alternative at just $259 per year
Don’t hesitate to video call one of our caring Aussie vets whenever you need expert advice on your pet!
– Dr. Claire,
Founder and CEO of VetChat
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