There’s a new pet insurer disrupting the market, offering no-frills affordable cover plans for more budget conscious pet owners as new data shows one in seven Australian pet owners are being hit with annual vet bills in excess of $1,000.
The average cost of pet insurance in Australia is $134 a month, however with the launch of CoverMy Pet, insurance can now be accessed for as little as $22 a month, covering 85% of usual vet bills for illness, accident and injury for the lifetime of their pet with a cap on premiums.
Australia has one of the highest rates of pet ownership in the world with seven in 10 households owning a pet, however it has one of the lowest rates of pet insurance cover.
CoverMy Pet General Manager Grant Pugh said they are hoping to change that with a new low-cost option for families who need cover without the hefty premiums.
“We saw a real need to offer a low cost cover option as Australians are looking for ways to reduce monthly premiums. Why pay for extra that you don’t need,” Mr Pugh questioned.
“That's why we are shaking up the market to offer reliable and affordable cover so that pet owners can have peace of mind when it comes to their animal’s health.”
Industry research also reveals pet owners often start to cancel their policies after a few years because the premiums become too expensive and owners have not seen a return on their investment.
The problem, Pugh warned, is that it’s then expensive to get cover again and pets are then more likely to be classed as having a pre-existing condition.
“With the current cost of living, combined with interest rate rises and strain on fuel and grocery prices, it’s easy to see why families make the tough decision to ditch their pet’s insurance but then regret it later,” said Mr Pugh.
“What we see across the industry is that pet owners start to cancel their policies after three or four years because the premiums have increased dramatically since they signed up.
“Unfortunately shortly after they make this decision their pet is injured or becomes ill and they find themselves grossly out of pocket.”
Mr Pugh said shopping around is important to get the best deal saving families upwards of $30,000 over a pet’s life.