✓ Veterinarian Reviewed
Reviewed by Dr Gloria Ebeyer (BAVBS, DVM, Grad Cert SAECC, MANZCVS [Veterinary Practice])
Last reviewed: June 2026
Being a pet parent is incredibly rewarding, but one thing that can sting a little is unexpected vet bills. Routine visits often become part of the budget, but an injury or sudden illness can still come as a shock.
Whether you're still considering a pet or have just brought one home, it is worth weighing up your options early. Keep reading to learn about the different types of pet insurance available and the questions to ask when deciding whether pet insurance is right for you.
What is pet insurance?
Pet insurance operates similarly to your own health insurance. You pay a set amount each month or year to an insurer, which may cover part of your eligible vet bills. The vet costs covered can vary significantly between policies.
Policies will generally fall into three categories:
- Accident coverage: Designed to cover eligible accidental injuries, but not illnesses.
- Accident and illness: Covers eligible illnesses as well as accidental injuries
- Comprehensive coverage: May include accident and illness cover, along with extras such as dental care.
When comparing policies, you’ll notice differences in inclusions, exclusions and reimbursement amounts. Caps and limitations are common. Most insurers won’t reimburse the full cost of a vet visit. Depending on the policy, the benefit percentage may be around 70–80%.
Another factor you might notice in the fine print is that pre-existing conditions are excluded. For example, a heart condition diagnosed before you apply may be excluded from cover. This is why pet parents who choose insurance often take out a policy while their pet is young and healthy.
Keep a record of your pet’s medical history, including previous treatments, test results and medications. Having this information on hand can make it easier to compare policies and understand what may or may not be covered.
What happens as your pet gets older?
One of the things to consider when choosing pet insurance is what it’ll look like long term. As your little buddy ages, the cost to keep them insured will go up as they’re more likely to need vet care when they’re getting older. By their senior years, premiums may become a significant household expense.
In addition to rising premiums, changes to exclusions, limits or benefit percentages may reduce the value of your cover over time. This can look like a reduction in the benefit percentage for senior pets, or mean you have a lower annual limit of how much you can claim back.
Saving for unexpected vet bills
The other common plan for pet parents is simply putting aside a set amount each month (or payday). It can go towards anything from flea and parasite treatments for your dog to special hairball food for your cat. Then, if the situation arises, you already have a lump sum for the vet.
Starting early gives your emergency fund more time to grow before you need it. This method also means you can save as much as you like, without the obligation to pay in a set amount like you would with insurance.
It does take time to build, though, so if you’ve adopted a pet who’s more likely to develop certain health concerns, you may be left out of pocket for those more significant vet appointments.
Questions worth asking before you decide
- How old is your pet at the moment (and do they have any existing health conditions)?
- If you had a sudden vet trip tomorrow, how much could you comfortably pay out of pocket (and do you need to add a little extra to your savings each month as a result)?
- If you’re considering a pet, have you done your research into the common health concerns of the breed you’re interested in?
- When you are considering insurance, have you compared policies (not just premiums, but benefit percentages, exclusions, and sub-limits)?
Some pet parents use a combination of insurance and personal savings to help manage both insured and uninsured costs. Then, as they get older, save for anything major.
The bottom line
There’s no definitive right answer, especially when every pet and household is different. For some, having pet insurance can offer extra peace of mind, particularly for younger pets (or breeds prone to health issues). Meanwhile, a personal savings fund provides greater flexibility and remains available as your pet ages.
For some pet parents, a combination of both makes sense. Ultimately, planning and budgeting is a great idea no matter where you are on your journey.
When you visit a Petstock vet, you’ll gain access to a range of payment options, making it easier for you to focus on what matters most – looking after your pet.
Not sure where to start with your pet's health needs? Head to our Vet Chat at any time to speak to a trusted New Zealand vet.