How pet insurance works in New Zealand and what it really covers

Whether you’ve brought home a furry companion or your pet found you (the cat distribution system is real), having a pet can make your family feel complete. In addition to love and affection, there are a few things that all animals need to ensure that they are well cared for. While your home may already be filled with toys and treats to make your cat or dog settle into their home, don’t forget about investing in pet insurance.

A trip to the vet is often unexpected and expensive. Pet insurance isn’t just a nice-to-have. It can be a financial lifeline when your pet needs surgery, has an allergic reaction or ingests something they shouldn’t have.

Although pet insurance is becoming more popular in New Zealand, there are only a handful of providers to choose from. Our guide will help you determine whether pet insurance is right for you and how each provider differs.

• Why you should get pet insurance in New Zealand
• What types of pet insurance you can get in New Zealand
• What to look out for when taking out pet insurance in New Zealand
• Pet insurance providers in New Zealand
• Paying for peace of mind

Why get pet insurance in New Zealand?

We all know that vet bills are expensive. Yet very few Kiwis have the savings needed to cover a big bill. According to The Spinoff, around 30% of us wouldn’t have enough savings to cover a NZ$500 bill.

Pet insurance is similar to other types of insurance. You pay an insurer weekly, fortnightly, or monthly for a policy that accounts for the age, species, breed, and any pre-existing conditions of your pet. Your insurer then pays for eligible vet bills when you make a claim.

What types of pet insurance can I get?

Before you start comparing pet insurance policies, it’s a good idea to determine what you are looking for. Like health insurance, there are differences in inclusions. In other words, the breadth of what you are covered for. These are usually separated into three types of policies.

Accident-only pet insurance

What is it?

This type of coverage will pay for your pet’s vet appointment and expenses if they're in an accident that causes them injury.

An accident is usually defined as something sudden and unexpected. This type of insurance would cover a pet breaking a bone or injury from being hit by a car, but not for an injury caused by an illness over time.

If eligible, you’ll be paid out up to your claim limit, so you’ll need to know what this is. Coverage usually includes:

• Medical procedures

• Consultation fees

• Blood tests

• X-rays

• Medicines

• Surgery

What to know?

Accident-only pet insurance is usually the cheapest cover to get in New Zealand. But, it has the lowest annual defined benefit limit. This means that the policy will reimburse you the least amount of money per year compared to other policies. If you have a lot of medical expenses, this plan will stop covering costs once you hit the annual limit.

Accident and illness coverage

This plan not only covers your expenses related to accidents. You’re also covered if your pet gets sick.

While these policies have higher premiums, your annual defined benefit limit—the maximum amount your insurer will pay out in a year—is higher.

What to know?

Accident and illness coverage is a great option as you’re covered for the unexpected and the less scary but still expensive stuff that can affect your pet. You may not be covered for dental work and regular vet visits for things like vaccinations. You may want to weigh up whether comprehensive coverage is worth it or if you want to pay for annual checkups and visits yourself.

Comprehensive cover

This is the most extensive coverage you can get for your pet. This policy includes coverage for accidents, illnesses and other treatments.

The ‘other treatments’ will differ depending on your provider, but may cover dental treatments, general vet visits and vaccinations.

What to know?

While this plan has the highest premiums, it also comes with the highest annual defined benefit limit and covers the widest range of treatments.

It’s the plan type with the highest premium, providing the highest benefit limit per year with the widest range of benefits.

Third-party cover

Third-party coverage helps you pay for other people’s vet bills or property damage caused by your pet.

Under New Zealand law, pet owners are liable for any damages they cause to other people’s pets or property. This means that you could be liable if your dog destroys your neighbour's fence, or your cat gets into a fight, injuring your neighbour's cat.

What to know?

Coverage is generally quite affordable as you’re not covered for accidents, illnesses or other health problems. You’re also not covered for property damage or injury to your own pet—just the third party. This type of coverage is sometimes included in other plan types.

What to look out for when taking out pet insurance in New Zealand

According to the SPCA, the average cost of treating a dog in New Zealand is NZ$499, while the average cost of treating a cat is NZ$199.

82% of dogs require one or more vet visits a year. Therefore, policy add-ons and excess payments can quickly add up. Here’s what you need to know before you take out a policy.

Wellness benefits

A common add-on in pet insurance is ‘wellness care.’ This is an additional bolt-on to your insurance policy and pays for things like desexing, worming products and vaccinations. These benefits usually only cost a few dollars more each month, but over a year may not be worth it.

Before you add wellness benefits to your policy, consider whether you can budget for these expenses. Your vet should be able to give you an idea of how often you’ll need to schedule visits for routine checkups, vaccinations and worming, making these expenses easy to account for.

Excess payments

Like health insurance, your excess is the amount of money you have to cover before your insurance coverage kicks in. Take a look at the excess on each policy. If you have comprehensive insurance but have hundreds of dollars in excess, this might not be the right plan for you. Remember, the excess is applicable each time you put in a claim.

Co-payments

On some policies, rather than being charged an excess, you’ll ‘share’ a percentage of each bill with your insurer. That means when you make a claim, you’ll often need to pay 20% or 30% of the cost yourself. On the one hand, co-payment plans typically have lower monthly premiums. However, if you’re making a large claim, there’s a risk that you might not have the money to cover the shortfall.

Contract terms

Read through your provider's contract terms, including how long you’ll need to sign up for their services. Some providers have 12-month terms and like a gym, you’re stuck paying or have to pay a cancellation fee to end your policy. Month-to-month coverage means you can cancel or change your policy fairly easily.

Claims process

While you’ll never really know what the claims process is like until you submit a claim, you can ask each provider for the average turnaround time. You can also find out whether they use an online portal or require you to submit claims via a form. The easier a claim is to make, the more likely you are to submit one. A good way to get unbiased feedback is to read each provider's Google reviews.

Exclusions

What your insurance provider doesn’t cover is just as important as what they do cover. These are exclusions, which are essentially the pre-existing or underlying medical conditions they won’t pay for. Some providers will, however, cover health conditions if your pet is symptom-free for a certain number of months—so it’s worth checking.

If your pet is a working dog or service animal, they may not be covered for injuries (or their premiums will be higher) if they engage in commercial activities.

Waiting periods

All policies have a stand-down period during which you won’t be eligible to make a claim. Waiting periods begin from the day you take out your policy. They are designed to prevent people from taking out pet insurance, making a claim and then cancelling their policy.

Waiting periods are a good reminder that you should get pet insurance when your animal is healthy (or ideally from the day they come home) or before they have a pre-existing condition or are too old to make paying the premiums worthwhile.

Who are the pet insurance providers in New Zealand?

AA Pet Insurance

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Benefits include

• AA Members are eligible for a discount of up to 5% on each policy.

• Once insured, coverage for your pet lasts for as long as the product is offered.

• Complimentary VetChat appointments via video call for help with your pet.

• Coverage for some pre-existing conditions if your pet is symptom-free for 18 months.

• Quick and simple online claims portal.

The cost of dog policies starts from

The cost of cat policies starts from

Cove pet insurance

Benefits include

• Get one month of insurance free, worth up to NZ$100 when you apply.

• If your pet is less than 6 months on, receive three months of savings.

• Bundle multiple policies together for additional discounts.

• Get an annual discount of 10% when you choose to pay annually.

The cost of dog policies starts from

The cost of cat policies starts from

PD Pet Insurance

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Benefits include

• Buy online and get one month free.

• Fast and easy online claims process.

• 5% Pet discount for every additional pet.

Cost of dog policies

Cost of cat policies

Pet Cover Group

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Benefits include

• Up to 100% of eligible vet bills are covered.

• Horse & exotic pet coverage.

• 93% Of claims paid out (Jun 2023 – Mar 2024).

• 9 out of 10 claims are paid within just 5 days.

Cost of dog policies

Cost of cat policies

Pet N Sur

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Benefits

• NZ$60M of pet medical bills paid.

• 99.3% of claim payments
are made within 14 days.

• 100% NZ-owned and managed.

Cost of dog policies

Cost of cat policies

Southern Cross Pet Insurance

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Benefits

• Puppies and kittens between 6 and 26 weeks get 6 weeks of free cover.

The cost of dog policies starts from

Please note payments vary depending on your choice of:

The cost of cat policies starts from

Please note payments vary depending on your choice of:

Tower

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Benefits

• Policies cover 80% of eligible vet fees.

• Immediate injury cover: Cover for injury as soon as you buy your policy.

The cost of dog policies starts from

The cost of cat policies starts from

Paying for peace of mind

Pet insurance offers peace of mind—knowing your furry friend is cared for, no matter what happens. If you have pets, relocating can be stressful. Like pet insurance, Wise Move’s pet moving service can put you at ease and make the process safer and smoother for all involved.

You can book trusted movers on the Wise Move platform who specialise in transporting your pets safely and carefully from A to B. This means you can focus on settling into your new home, knowing your companion is in good hands. Just like insurance, it’s one more way to protect what matters most.