Is pet insurance worth it? Insurance vs savings calculator
This calculator does not tell you which path to choose. It shows what each path leaves you with: pay the premium to an insurer, or put the same money in a savings account.
Assumptions
Result
Insurance
After a bill for Hip surgery in year 2
Money left: -$2,014
Out of pocket: $2,014
With no claim after 5 years
Money left: $0
Premiums set aside by then: $3,023
Savings account
After a bill for Hip surgery in year 2
Money left: -$6,031
Savings shortfall on the day: $6,031
With no claim after 5 years
Money left: $11,597
Premiums set aside by then: $3,023
Break-even claim in year 2: $4,246
Policy caveats to check
- Waiting periods can delay illness or specified-condition cover.
- Pre-existing exclusions can apply to signs or conditions that appeared before cover starts.
- If you switch insurers after a diagnosis, the new insurer will usually treat that condition as pre-existing and exclude it.
- Sub-limits may cap specific conditions even when the annual limit is higher.
- Premium growth is an assumption; your renewal notices may move differently.
Year-by-year projection
| Year | Premium | Cumulative premiums | Savings balance |
|---|---|---|---|
| 1 | $1,374 | $1,374 | $1,440 |
| 2 | $1,649 | $3,023 | $3,237 |
| 3 | $1,979 | $5,001 | $5,466 |
| 4 | $2,374 | $7,376 | $8,217 |
| 5 | $2,849 | $10,225 | $11,597 |
How does the insurance vs savings maths work?
Each year deposits the same amount as that year's premium into savings, then adds interest at year end. For a claim, insurance pays the benefit percentage after one excess and any annual limit; savings subtracts the bill from the balance available in that claim year.
What default annual premiums does the calculator use?
| Pet type | Annual premium | Checked |
|---|---|---|
| Cat | $807 | Checked 2026-09-28 |
| Small dog | $1,358 | Checked 2026-09-28 |
| Medium dog | $1,374 | Checked 2026-09-28 |
| Large dog | $1,461 | Checked 2026-09-28 |
What sourced claim costs can you test?
| Condition | Species | Average claimed | Year |
|---|---|---|---|
| Hip surgery | Dog | $9,268 | 2025 |
| Lymphoma | Dog | $6,056 | 2025 |
| Gastric dilatation volvulus (GDV, bloat) | Dog | $5,223 | 2025 |
| Intervertebral disc disease (IVDD) | Dog | $4,924 | 2025 |
| Fracture repair | Dog | $4,356 | 2025 |
| Fracture repair | Cat | $4,471 | 2025 |
| Lymphoma | Cat | $4,327 | 2025 |
| Malignant cancer | Cat | $3,677 | 2025 |
| Snake bite | Cat | $3,508 | 2025 |
| Ingestion of toxin or foreign body | Cat | $3,042 | 2025 |
Questions about pet insurance and savings
Does pet insurance get more expensive every year?
Premiums can rise with age, claims experience and insurer pricing changes. This calculator starts with a 20% yearly premium-growth assumption from PetSure, as cited by Finder, and lets you edit the percentage.
What happens to pre-existing conditions if I switch?
A new insurer will usually treat a diagnosed condition, or signs that appeared before cover starts, as pre-existing. That condition may be excluded under the new PDS.
Can I insure a 10-year-old dog?
New cover may be limited once a pet is near 9 years old. The entry-age note on this page is derived from the current PawCompass insurance directory, so check the insurer's PDS before applying.
How does a savings account compare with pet insurance?
A savings account keeps the money available when there is no claim, but the balance can be short in the early years. Insurance can reduce the bill after excess, benefit percentage and annual limits are applied.
What does the break-even claim number mean?
The break-even number is the claim size where the insurance payout equals the savings balance in the selected claim year. If the annual limit is below that balance, the calculator shows that no break-even point exists inside the limit.
Related pet insurance guides
- Compare pet insurance policies
- Pet insurance costs in Australia
- IVDD, cruciate and hip dysplasia insurance guide
- Emergency vet costs in Australia
Sources checked
- https://www.canstar.com.au/pet-insurance/cost-of-pet-insurance/ — Checked 2026-09-28
- https://www.finder.com.au/pet-insurance/pet-insurance-cost — Checked 2026-09-28
- https://www.rba.gov.au/statistics/tables/csv/f4-data.csv — Checked 2026-09-28
- https://petsure.com.au/knowledge-hub/most-expensive-pet-health-conditions/ — Checked 2026-09-28
General information only, not financial advice. Product terms, exclusions, waiting periods, excess types and annual limits vary by insurer, so read the PDS before buying or changing cover.