Pet Insurance Went Up Again? Keep, Switch or Save (2026)
PawCompass AU · Last updated: 25 Oct 2026
On this page
This guide is general information, not personal financial product advice, and does not consider your objectives, financial situation or needs. Check the current Product Disclosure Statement (PDS) and Target Market Determination (TMD) for any policy before making a decision.
A renewal increase does not by itself tell you whether to keep cover, change its settings, switch or self-fund future bills. First compare the old and new policy terms on the renewal notice, then weigh any savings against what could become excluded or what you can pay from savings today.
How much do pet insurance premiums usually rise each year?
Canstar's 2024-to-2025 sample averages rose between 7.3% and 9.9%, but those category changes do not predict an individual renewal. Canstar compared accident-and-illness products in its 2025 Awards: small dogs rose from $1,226 to $1,316 a year, medium dogs from $1,204 to $1,323, large dogs from $1,301 to $1,423 and cats from $714 to $776. The changes were +7.3%, +9.9%, +9.4% and +8.7%, respectively (Canstar, 18 July 2025).
Those percentages describe Canstar's category sample, not every policyholder's renewal. Individual renewals reported by Australian owners on Reddit have been far larger:
| Owner report | Reported change | Increase |
|---|---|---|
| 5-year-old dog, "no specific health concerns" (r/AusFinance, August 2026) | $110 → $165 a month | +50% |
| Dog aged 9¾, "no major claims or health concerns" in 5+ years (r/AusFinance, November 2024) | $936 → $1,222 a year | +30.6% |
| Policy in its second year (r/australia, December 2023) | Renewal letter | +42.76% |
These are single owner posts, not market averages, but they show why a renewal notice should be checked line by line rather than compared with an average. Calculate your own change: (new annual premium − previous annual premium) ÷ previous annual premium × 100.
Canstar's age table, prepared on 17 March 2026 from products rated in its 2025 Awards, shows how premiums vary across age bands. These are annual accident-and-illness averages, not quotes for an individual pet (Canstar older pets).
| Pet | Under 1 year | 2–3 years | 4–5 years | 6–7 years |
|---|---|---|---|---|
| Cat | $630 | $724 | $843 | $1,030 |
| Small dog | $894 | $1,153 | $1,496 | $1,890 |
| Medium dog | $962 | $1,198 | $1,449 | $1,886 |
| Large dog | $1,015 | $1,274 | $1,540 | $2,017 |
Canstar's page also has conflicting narrative figures for 6–7-year-old dogs: $1,619 for small, $1,602 for medium and $1,660 for large, versus the itemised table values above. The small-dog group excludes French Bulldogs. Separately, Canstar's 2026 Awards report averages of about $986 for cats and $1,693 for medium dogs; that cohort is not combined with the 2025 age table (Canstar, 24 October 2026).
Why did my premium go up this year?
A renewal can rise for several reasons at once, so ask the insurer what changed instead of assuming one claim caused the whole increase. For example, Petinsurance.com.au's Best in Show SPDS dated 18 November 2025 says renewals can consider pet claim history, average care costs for similar pets, claims experience across insured pets, changes in risk profile, prior premiums and discounts (SPDS and PDS documents). The clause explains that claim history may be one factor; it does not prove a particular claim alone caused a specific increase.
| Possible factor | What to check on your renewal |
|---|---|
| Your pet is older | Compare the age used for renewal pricing and the same policy's current cover terms. Canstar's 2025 sample shows average prices increasing across age bands. |
| Broader veterinary and claims costs | Canstar reported Australian veterinary-services CPI was up 5.8% over the year in its 18 July 2025 report. This is context for sector costs, not a calculation of your insurer's price change. |
| Your pet's claims or risk history | Read the renewal explanation and ask which factors were applied. The Petinsurance.com.au SPDS lists claim history among several factors. |
| A first-year discount ended | Compare the original quote, discount period and renewal schedule. A 2022 AFCA dispute reported by Insurance News concerned a rise over 40% where the insurer cited an expired first-year discount alongside claims-cost changes; it was one case, not a typical increase. (Insurance News, 16 August 2022) |
| The cover itself changed | Compare benefit percentage, annual limit, excess, sub-limits and exclusions line by line. A lower premium may accompany less cover or a higher amount payable by you. |
Before comparing prices, record any changes to benefit percentage, annual limit, excess and sub-limits alongside the total yearly premium. The pet insurance cost guide has treatment examples; the policy terms guide explains limits.
Can you keep the policy but pay less?
You may be able to ask about a higher excess or a lower cover tier while keeping the policy, but compare what you save with what you would pay at claim time. Ask the insurer for revised renewal terms in writing and make sure you compare the same pet and the same policy period.
| Change to ask about | Potential effect | Check before accepting |
|---|---|---|
| Increase the excess | The insurer may quote a lower premium; you take on more of an eligible bill. | Whether excess applies per claim, condition or policy year, and what you can afford immediately. |
| Reduce the annual limit | The policy may cost less, but the maximum benefit falls. | Whether the limit is shared across treatment types and whether condition sub-limits also apply. |
| Move to accident-only cover | The policy would no longer cover illness treatment under that tier. | Whether illness cover is important given your pet's history and your ability to fund illness costs. |
| Remove an optional benefit | The premium may reduce if an add-on is removed. | Which services or treatment categories the add-on covered, and whether it can be restored later. |
Compare the excess and benefit percentage together, then check waiting periods and exclusions in the current PDS. The insurance vs savings calculator uses your own premium and settings.
What do you lose if you switch insurers?
Switching can mean a condition already claimed for is treated as pre-existing by the new insurer, and a new policy can have fresh waiting periods. Moneysmart's current pet insurance guidance warns that anything previously claimed for would be considered pre-existing to the new insurer and tells consumers to check waiting periods and exclusions (Moneysmart, updated 20 October 2026). This is a warning to check the specific decision and policy wording, not a statement that every insurer applies identical terms to every condition. The same Moneysmart page notes that insurance "is most effective if you insure your pet while they're young and keep the cover throughout the life of your pet".
Entry ages vary by product. The PD Australia PDS version 6.6, dated 21 October 2025, gives an entry age of 6 weeks to 12 years for Accident Plan and 6 weeks to 9 years for Classic and Deluxe; pets over 9 can only qualify for its Accident Plan. Medibank lists entry from older than 8 weeks to younger than 9 years for its three products (PD PDS; Medibank entry ages). These are product examples, not an industry-wide rule.
Ask the new insurer to assess your pet's history and confirm in writing exclusions, waiting periods and the cover start date. Do not cancel existing cover until you have that confirmation and understand the terms. See the pre-existing conditions guide and waiting-period explainer.
Can you cancel and save the money instead?
Self-funding avoids future premiums, but the balance grows gradually while an unexpected bill can arrive before savings have built up. The table below is arithmetic using Canstar's 2025 average small-dog accident-and-illness premium of $1,316 a year, divided by 12 and saved monthly; it assumes no interest, fees or withdrawals. It is a scenario, not a forecast of vet bills or investment return.
| Time saving the equivalent | Contributions at $1,316/year | Published treatment-cost example |
|---|---|---|
| 3 months | $329 | — |
| 12 months | $1,316 | CHOICE lists cruciate ligament surgery at $5,500. |
| 36 months | $3,948 | Still below the $5,500 CHOICE example. |
CHOICE's $5,500 cruciate figure is an example, not a guaranteed price (CHOICE, updated 29 August 2024). Your premium may differ; the arithmetic excludes routine care, interest, excesses and claim payments.
An existing emergency balance can make self-funding more workable than starting from zero. Moneysmart says premiums can "amount to thousands of dollars" over a pet's life and suggests setting money aside in a savings account each pay, but gives no fixed reserve target. Compare your situation with the insurance vs savings calculator, IVDD and cruciate guide and emergency vet cost guide.
Keep, switch or save: which fits your situation?
The right next step depends on your pet's health history, current policy and available cash, so use this table to identify what to verify before deciding.
| Situation | Option to examine first | Main risk | Check before acting |
|---|---|---|---|
| Young pet with no known condition | Compare renewal and like-for-like alternatives. | A new policy may introduce waiting periods or exclusions. | Entry age, waiting periods, limits and excess in each current PDS. |
| Pet with a condition already claimed for | Ask about adjusting the existing policy before considering a switch. | The new insurer may treat the claimed condition as pre-existing. | Get a written assessment of the pet's history before cancelling existing cover. |
| Breed with a known health concern, such as a French Bulldog or Dachshund | Compare condition wording and limits as well as price. | Relevant conditions may be excluded, limited or subject to waiting periods. | Hereditary, congenital and condition-specific terms in the PDS. |
| Older pet near or beyond an entry-age limit | Ask the current insurer about renewal options and check product-specific new-entry limits. | Fewer new-policy options may be available; terms differ by product. | Current PDS entry ages and whether the existing policy can continue. |
| Household already has an emergency reserve | Compare keeping cover with self-funding, using likely bills and policy limits. | Savings may not yet cover a large bill, or an insured bill may exceed a policy limit. | Cash available now, annual premium, excess, benefit percentage and sub-limits. |
No row guarantees that one option will cost less or pay a claim. Moneysmart advises checking policy caps, waiting periods, pre-existing conditions, age and breed restrictions; Canstar's published premiums are sample averages. Use current documents and a written quote for your pet rather than assuming a category figure will match your renewal.
What is the practical conclusion?
Start by checking whether the renewal increase reflects a premium change, a cover change or both. If you consider switching, get a written assessment of your pet's history and new waiting periods before cancelling current cover. If you consider self-funding, compare the cash you have today with realistic treatment examples, not only the balance you might build over time.
This guide is general information and is current as of October 2026. Product terms and prices change; check the current PDS and TMD and seek advice suited to your circumstances if needed.
FAQ
How much does pet insurance go up each year in Australia?›
Canstar's 2024-to-2025 accident-and-illness sample averages rose 7.3% for small dogs, 9.9% for medium dogs, 9.4% for large dogs and 8.7% for cats. Individual owners have reported much larger renewals on Reddit, such as +30.6% and +50%. Category averages are not an individual renewal forecast; compare your own renewal documents and cover settings.
Why did my pet insurance go up if I didn't claim?›
Premiums can change with age, pet risk and broader claims and care costs, as well as discounts and prior premium settings. Petinsurance.com.au's November 2025 SPDS lists several renewal factors, including the pet's claim history and claims experience across insured pets.
Will my pet's conditions be covered if I switch insurers?›
Moneysmart warns that anything previously claimed for would be considered pre-existing by the new insurer. Check the new insurer's written assessment, PDS and waiting periods before cancelling existing cover.
Is it better to save for vet bills instead of pet insurance?›
Saving avoids premiums but takes time to build a balance. For illustration, saving $1,316 a year accumulates $329 after 3 months and $3,948 after 36 months, before interest; CHOICE lists cruciate ligament surgery at $5,500. Your own bills and cover terms will differ.
Can I insure an older dog or cat in Australia?›
Entry limits vary by product. For example, the PD Australia PDS gives different age limits for Accident and Classic or Deluxe plans, while Medibank lists new-policy entry from older than 8 weeks to younger than 9 years. Check the current PDS for the specific product.