Pet owners spend about $1 billion annually on pet insurance. (Pexels: Harry Tucker)
Pets are like family and when they get sick or injured, you can be faced with vet bills in the thousands.
That's a difficult position to be in when you don't have the funds to treat them, which is why pet insurance can be an attractive option.
"With no pet equivalent of Medicare subsidies, the full cost of treatment falls on the pet owner," says financial educator Lacey Filipich.
"Insurance can help take the stress out of life, as well as help pet owners avoid going into debt if the worst happens."
But pet insurance is a "complex financial product", explains Daniel Graham, insurance analyst at consumer advocacy group Choice, making it difficult to know if it's worthwhile.
And insurance isn't your only option when it comes to planning for pet expenses.
A 2025 survey from Animal Medicines Australia shows Australian pet owners spent about $1 billion annually on pet insurance, but most don't have it.
Eighty-six per of cat owners and 76 per cent of dog owners aren't covered. Responses to the survey include "it's too expensive", "I don't see the value" and "haven't looked into it".
Recent Canstar data shows for accident and illness cover, the average annual premium for a cat is $807, and $1,374 for a medium-sized dog.
Add in routine care cover and the premium typically increases by a couple of hundred dollars.
Costs will also depend on the age and breed of your pet.
Peace of mind is the biggest benefit of pet insurance, says Ms Filipich.
"Spending a few hundred to a couple of thousand dollars a year might be worth it for the certainty, especially when you know you'd pursue expensive treatments for your pet if they fell ill or were injured.
"Gone are the days when the majority of people simply put down their pet when something went drastically wrong."