Pet insurance premiums top $1,374 a year as vet costs rise

Australian pet owners spent about $1 billion on pet insurance in 2025, but the majority of cat and dog owners remain uninsured. The annual premium for a medium-sized dog runs $1,374 for accident and illness cover alone, according to Canstar data. Cat owners face $807 a year for the same product.

Eighty-six percent of cat owners and 76 percent of dog owners do not carry insurance, a 2025 survey from Animal Medicines Australia found. Responses to the survey included "it's too expensive", "I don't see the value" and "haven't looked into it".

"With no pet equivalent of Medicare subsidies, the full cost of treatment falls on the pet owner," financial educator Lacey Filipich said. "Insurance can help take the stress out of life, as well as help pet owners avoid going into debt if the worst happens."

Veterinary costs are rising, driven by investment in technology, said Daniel Graham, insurance analyst at consumer advocacy group Choice. "Like with human health, the technology to treat different conditions is becoming more widely available, and vet practices are purchasing that technology – that costs money."

Pet insurance is a "complex financial product", Graham said, making it difficult to know if it is worthwhile.

Breed and Age Factors

Coverage tapers as pets age. A policy that covers 80 percent of vet bills when an animal is eight years old may drop to 65 percent at age 10. "This is the age your pet is most likely to need vet cover," Graham said.

Breed matters even more for dogs. Brachycephalic breeds such as French bulldogs, pugs and Boston terriers face unique health risks including breathing and heat challenges. "They require a lot of medical treatment throughout their life, which is very costly to insurers," Graham said. A monthly premium for a Cavoodle might run $60 to $100, while a French bulldog costs $230 to $375.