REVEALED – THE MOST AND LEAST EXPENSIVE DOG BREEDS TO INSURE IN AUSTRALIA
Source: Insurance Business Australia (Extract)
Posted: April 9, 2022
The pandemic has triggered a surge in pet ownership in Australia, with 69% of all households saying they have taken in a pet amid the coronavirus outbreak, a 2021 study conducted by Animal Medicines Australia (AMA) found. The figure represented an 8% rise in two years and translated to a record-high 30.4 million pets across the country.
The boom was led by an increase in dog ownership, with more than a million additional canines brought to Australian homes since 2019. Overall, about a fifth of all pet dogs in the country have been procured during the pandemic, split equally between new and experienced owners, according to the triennial report.
However, contrary to popular belief that COVID-19 was the main reason for rising pet ownership, the study has found most owners had long been thinking of getting a pet even before the outbreak and the restrictions imposed during the pandemic had simply gave them an opportunity to do so.
“Our research indicates that the COVID-19 pandemic restrictions may have created an opportunity for Australians to introduce a previously desired pet into the family, rather than the pandemic being the reason itself for acquiring a pet,” said AMA president Lance Williams. “For instance, working from home arrangements have provided the opportunity to spend time with a young pet.”
The research also highlighted the positive impact pet ownership had on people’s lives. 70% of those who participated in the study said that being a pet owner has improved their lives during the pandemic.
“While the participants in both the focus groups and the survey struggled to pinpoint specific changes to behaviours in their pets or themselves, they were able to readily name overall benefits, including companionship, comfort, positive mental and physical health, and unconditional love,” the report noted.
The study also found that pet owners are spending $3,200 per dog each year, primarily on food, veterinary services, and healthcare products. Extrapolated across the country, dog owners have spent $20.5 billion in the past year.
Considering these figures, money-saving website Mozo said it would be wise for owners to treat their pets more of an “overall investment,” rather than just “best furry friends.”
“While you can’t put a price on a pet’s affection, most good investments do call for some level of insurance,” the website explained. “That’s where pet insurance comes in. The question is, how much exactly should you be paying to protect little Spot?”
How does pet insurance work?
Pet insurance plans are designed to protect pet owners from the financial impact of unexpected veterinary expenses. Most policies follow a reimbursement-based model, allowing policyholders to consult or get treatment from a specialist of their choosing, but there are also a few providers that offer the option to pay the veterinarian directly.
Policies vary between insurers but each outlines which conditions and expenses are covered, reimbursement rate, deductible, and maximum payout or annual limit. Each plan also has a waiting period before coverage kicks in. The time varies depending on the insurance company, but most require a waiting period of 14 days.
What factors impact the cost of dog insurance?
Mozo’s 2021 pet insurance report identified three major factors that affect the cost of pet insurance for dogs. These are:
- The dog’s size
According to the report, bigger dogs tend to have shorter lifespans, meaning they are more prone to health issues associated with ageing, including canine cancer, development disorders, and tumours, which experts say may be linked to their accelerated growth.
The research has found that larger breeds such as mastiffs, French bulldogs, British bulldogs, and Bernese mountain dogs are among the most expensive to insure, while smaller breeds, including terriers, schnauzers and Pomeranians typically have lower pet insurance premiums.
- The type of breed
The average cost to insure a purebred dog is $1,375, almost a third more expensive than it is for crossbreeds at $1,030, according to Mozo’s study. The reason is that the purer the breed, the greater risk the dog has of developing hereditary disorders.
“Bulldogs, for example, tend to suffer from brachycephalic airway syndrome due to their short muzzles,” the report explained. “Even the best breeder can’t prevent the risks of this type of issue, so this dog is known for its numerous annual trips to the vet.”
- The pet’s location
Mozo also found that where a dog lives has a significant impact on pet insurance rates. In Western Australia, pet owners are paying 15% more on insurance than their counterparts in New South Wales. The group’s analysis was based on insuring a three-year-old border collie for accident and illness coverage. All other states had minor differences in average price when compared to NSW, according to the report.
“The reason for different policy prices in WA is hard to pinpoint,” the report noted. “However, it may be due to the potential dangers of a different habitat and how those risks are assessed: these include a variety of snakes, scorpions and even many more large animals such as kangaroos.”
The most and least expensive dog breeds to insure in Australia
To find out how much pet insurance costs for different dog breeds, the financial comparison website Finder compared and averaged the prices of accident and illness coverage, with $0 excess, from six different providers. The hypothetical pet was a 1-year-old male and desexed dog, with a 24-year-old owner residing in the 2010 postcode. These breeds came out with the most and least expensive annual rates. The figures are up to date as of November 2021: https://bit.ly/3rEsYcD
