Australian pet owners are increasingly opting out of insuring their pets due to the rising cost of living, which may result in higher veterinary and medical expenses in the long term.
A Budget Direct survey revealed that over 60% of Australians do not have pet insurance, even though the cost of acquiring a pet has surged by 196% since 2020. Many pet owners are prioritizing other expenses over pet insurance.
Among those with insurance, nearly 10% could not claim any vet bill reimbursements, while almost 20% of 18-27-year-olds claimed up to 20% of their bills. In Western Australia, close to 12% of respondents successfully claimed up to 80% of their vet expenses.
Jonathan Kerr, Chief Growth Officer at Budget Direct, highlighted the significant risks associated with leaving pets uninsured. The survey showed that nearly a quarter of Australians have spent up to AU$5,000 ($3,250) out of pocket for veterinary care. Food remains the largest ongoing expense for pet owners, accounting for 69% of costs, with vet bills making up 18%.
Approximately 70% of Australians reported that most of their pet-related expenses went to food, a 10% increase since 2021. In Western Australia, 80% of respondents cited pet food as their primary expense.
Before pet insurance reimbursements, over a third of Australians faced vet bills up to AU$500 ($325), nearly a third paid up to AU$1,000 ($650), and a quarter incurred costs as high as AU$5,000 ($3,250). These figures are consistent with the 2021 survey findings.
When asked about spending to save a pet’s life, more than 50% of respondents said they would not be prepared to spend AU$10,000 ($6,500) on medical treatment. In contrast, 50.43% of female respondents and over 60% of 18-27-year-olds indicated they would be willing to spend that amount.
Kerr pointed out the absence of public health systems for pets, which leaves owners with two options: paying vet bills out of pocket or using private pet insurance to manage the costs of unexpected illnesses or accidents. “Pet insurance is a way for dog and cat owners to manage the cost of unexpected vet visits due to illness or accidents,” he said.
Related Topics:
