Pet insurance shouldn’t be confusing. And while our pets may keep us guessing (seriously, what are 1am zoomies about?), the basics are pretty straightforward.
Still, plenty of myths stop pet parents from seeing the potential benefit that pet insurance can offer. From what’s covered to when you can claim, misinformation (or lack of information) can confuse the most clued-on pet parent.
So, grab a comfy spot next to your feline or canine best bud – we’re busting pet insurance myths and breaking down the benefits, Buddy-style.
Why pet insurance misconceptions are so common
Even though many people understand what pet insurance is, it’s still not all that common.
According to Animal Medicines Australia’s latest Pets in Australia report, most Aussie pet owners remain uninsured, with 76% of dog owners and 86% of cat owners reporting they do not have pet insurance. That means a large portion of Aussie pet parents are going without cover.
This gap often comes down to misconceptions about how pet insurance works – and the value it can provide.
Let’s take a look at some of the most common pet insurance myths.
Misconception: Pet insurance isn’t worth the cost
Is pet insurance worth it? It’s a common question – and a common myth.
While many Australians are familiar with pet insurance, not everyone is convinced of its value. The same Pets in Australia report shows that a significant number of pet owners still choose to go without cover, often due to cost concerns or uncertainty about what they’ll get in return.
It’s easy to see why. Insurance means paying a regular premium for something you may not need right away – and you might not receive anything tangible back for some time.
But the reality is that vet costs can be unpredictable, and sometimes significant — which is where the value of pet insurance can really come into play.
For example, an ABC News report in 2025 highlighted how a beloved pet needed urgent, life‑saving treatment that resulted in veterinary fees running into thousands of dollars.
It’s good to know that there are different levels of pet insurance, so you can choose what’s best for your circumstances. For example, Buddy Pet Insurance offers different levels of cover to help meet different needs and budgets. One policy might cover a specific condition, and another may not, so it’s important to understand what exclusions exist in your policy.
Related: Pet insurance: 7 scenarios that prove it might be worth it
Misconception: Pet insurance is too expensive
This one is as common as toys ending up under the couch. Many pet owners assume insurance simply costs too much – but that’s not always the full picture.
According to the Pets in Australia report, the cost of caring for pets continues to rise, with vet care remaining one of the most significant ongoing expenses for Aussie households. In fact, some owners report needing financial assistance to cover unexpected vet bills.
It’s easy to focus on the upfront cost of a premium. But vet costs can vary widely depending on your pet’s age, breed and lifestyle – and more importantly, what happens if something goes wrong.
That means the annual cost of pet insurance may end up being higher or lower than what you spend at the vet in a typical year. But that’s not really the point. Pet insurance is there as a safety net – helping cover those larger, unexpected expenses that can be difficult to manage out of pocket.
If the cost of cover feels out of reach, it’s worth knowing there are different options available. Some policies cover accidents only, while others – like Buddy Pet Insurance – include both accidents and illnesses.
It can also help to have a chat with your vet about the kinds of health issues your pet might face based on their breed and age – and what treatment could cost. That way, you can choose a level of cover that suits both your pet and your budget.
Related: Why pet insurance matters: Protect your pet and your budget
Misconception: Healthy pets don’t need insurance
Even a healthy pet is only one misadventure – or one unexpected test result – away from costly or ongoing treatment.
As much as we want our pets to live forever in perfect health, the reality is that you don’t get pet insurance for your healthy pet today – you get it in case your pet gets sick or injured someday in the future.
What pet insurance actually covers
How pet insurance works – and what it covers – can vary significantly depending on the insurer and the level of cover you choose. That’s why it’s important to read the Product Disclosure Statement and understand exactly what’s included before you take out a policy.
Generally, pet insurance policies are designed to help cover the cost of unexpected veterinary treatment. Depending on the level of cover, this may include eligible expenses related to accidents, as well as illnesses. Some policies may also offer optional or additional benefits, such as routine or preventative care, for an extra premium.
It’s also important to be aware that most policies have specific conditions, exclusions, and waiting periods. For example, pre-existing conditions are typically not covered, and there may be limits on how much you can claim.
Taking the time to compare options – and understanding what is and isn’t included – can help you choose a policy that suits your pet’s needs and your budget.
The real benefits of pet insurance for pet owners
Here are some of the key benefits, at a glance:
- Pet insurance can help with the cost of eligible vet bills, depending on your level of cover
- It can make it easier to manage unexpected eligible vet bills so you can focus more on spending quality time with your furry friend
Ultimately, pet insurance is about being prepared, so you can feel safe in the knowledge that you’ve got a plan in place if something goes wrong.
When the unexpected strikes, being prepared can make all the difference. Learn how Buddy Pet Insurance can help support you and your cat or dog today.
21 Jul 2026