When Did Pet Insurance Begin (Pssst, Lassie Was a 1st)

When and where did pet insurance start? Was it in Australia, Europe, the Americas or elsewhere? What’s for sure is that animal insurance is still relatively new. Many pet owners are still just discovering the benefits…

In this article, PD Insurance looks at key milestones in pet insurance origins and explores the potential benefits of having it for pets. After all, pets get ill and injured just like people so it’s worth understanding the what, when and why of pet insurance right from the start. Here goes!

How long has animal insurance been around?

Pet insurance started in the 1890s in Sweden. However, these weren’t exactly the type of pet plans we know today. They were designed for farm animals like horses and livestock rather than companion animals.

These early policies were generally created as animal accident insurance for working animals, unlike the type of pet insurance today that more closely resembles health insurance.

Fast forward about fifty odd years and the first U.K pet insurance policy was sold. Then some decades later, in 1982, the first U.S. pet insurance policy was sold.

Question. Guess who was the lucky recipient?

Answer. Lassie!

That’s right. Not only is Lassie one of the first dogs to have made it big on the silver screen, but also the first dog to ever be insured in the U.S. Pretty cool, huh?

When did pet insurance start in Australia?

When did pet insurance start in Australia? Despite animal insurance having kicked off more than a century ago in Scandinavia, pet insurance only recently got going in Australia in the noughts.

As you can see pet insurance is relatively new to the Aussie market which perhaps explains why many pet owners are still learning about the benefits. Sadly, it’s often once it’s too late that many pet owners learn about the potential safety net pet insurance offers.

Having a pet plan before accidents, illness and dental issues arise can help cover costs, making it easy to choose the treatment pets need, over only those one can afford.

Is pet insurance mandatory in Australia?

Not at all, pet insurance is entirely the choice of the pet owner. Pet insurance in Australia is sometimes compared to human health insurance, and even though it comes with similar benefits, it’s also a little different.

According to the law, pets are possessions – they belong to you and are your property. Effectively, that means pet insurance is sort of like car insurance on paper, for example, but gives some similar safeguards to those provided by health insurance. For instance, by helping to pay unexpected medical bills covered by your plan.

If something bad happens to your cat or dog, like they get sick or hurt etc. then you can go to the vet, pay your bill and claim back what your pet insurance covers. Here’s more on pet insurance reimbursements.

What is the main purpose of pet insurance?

Now that we know when pet insurance started, what is its main purpose?

The benefits of having pet insurance mean you can claim back small to large sums you’ve paid for vet bills. These are bills that would otherwise leave you out of pocket for good. In many ways, that makes it similar to human health insurance.

Let’s look at what the purpose of pet insurance is in more detail:

• Vet treatments aren’t subsidised. Because vet costs aren’t government subsidised like human health care, pet insurance is a way to protect you financially for a wide range of unexpected vet tests and treatments.
• Choosing the treatment your pet needs, not just what you can afford. Pet insurance means your fur baby’s health conditions and treating them promptly (before they get worse) can be your primary focus – and not the bill. It means not having to split your focus on also worrying about the treatment costs.
• Pets often need unexpected vet treatment. Anything from a simple dog bee sting to grass infection can land pets up in vet hospital. That’s not counting the hundreds of accidents and hereditary or congenital conditions that can happen to pets.

Just add on the price tag for bed and breakfast, lifesaving tests, medication, surgery and more and you can quickly see the costs rise from double to triple digits. That’s because vet clinics are mini hospitals catering to multiple species and pathologies. It’s no wonder vet bills can be expensive.

How many Australians have pet insurance?

Roughly 6.9 million Aussie homes have pets, with just under 3 million pets all told. Despite this, only 17% of dogs and 21% of cats, have the protection of pet insurance.

This means the majority of pet owners will need to pay for vet bills without any financial buffer in place. Many may have savings of course, but when you look into savings vs pet insurance, this still can leave you out of pocket. It can also be risky when pets have multiple unexpected health issues in quick succession since savings don’t replenish once spent.

As we’ve mentioned, any health issue can rack up big costs. Especially one that needs one or more overnight stays at vet hospital, along with possible X-rays, surgery and prescribed medication. All of which can be covered by pet insurance.

Pet insurance guides

Here are some great guides to understanding pet insurance benefits before you start:

• Is pet insurance worth it?
• Busting the top 5 pet insurance myths
• How to compare pet insurance in Australia
• How expensive is pet insurance?
• When should you get insurance for dogs and cats?
• How to make pet insurance claims
• Is PD good for pet insurance?

Your dog or cat will be over the moon to know you’re looking into ways to safeguard them well. They love you unconditionally, so why not so the same for them?

Animal insurance covers a broad range of vet bills

High vet costs aren’t due to vets overcharging, but rather having to cover overheads without your bill being subsidised. Read our article ‘Vet Bills in Australia Are Expensive – True or False?’ for a clearer picture.

Could it simply be that pet insurance in Australia is so new that pet owners don’t know enough about the benefits? Perhaps, but that’s why we’re filling you in. As more and more pet owners join the fold, they in turn share their experience about the pros and cons of pet insurance, helping spread the word.

Protecting pets and pet professionals

If you start your pet insurance plan today, not only will you be protecting your pet and your pocket but also your vet and vet mental health in general. Just like pet insurance means not having to think about the costs instead focusing on your pet it also means you’re less likely to negotiate the treatment plan based on costs with your vet.

Pet owners who feel the pinch routinely place the blame on vets when their pets are ill. Vets carry this burden and many experience burnout.

Pet insurance means vets can spend less time chasing bills and negotiating or downgrading treatment plans (and in some cases being forced to euthanise). Instead, they can do the jobs they’re meant to do – help pets get better – something they’ve spent years practicing for, often out of a deep love for animals.

Now that you know about the early animal insurance and it’s evolution to the first pet insurance, it’s onto another great question…

When to start your pet insurance plan?

Besides wondering when did pet insurance start, a great question to ask is if and when you’d like to start your fur baby’s very own pet plan. As a new or experienced pet parent, having a soft landing for pets can bring great peace of mind.

A useful tip is that older pets and those who already have health conditions won’t be able to get the same level of cover available to young pets and those who haven’t developed any health concerns. That’s because cat and dog insurance doesn’t cover pre-existing conditions.

Add to this that different breeds are predisposed to certain genetic conditions and you can see that the sooner you start your pet insurance, the broader the cover can be.

Dog insurance and cat insurance gives you the freedom to claim back costly vet bills from X-rays and surgery to hospital stays and prescription medication. It also affords you the freedom of third party liability (included in all our plans). When you buy award winning pet insurance from PD Insurance you get one or more months free.

Click below to start your quote today.