Pet Insurance Excess vs No Excess — Which is Better? (2026)

Understanding the Excess Choice

When you take out pet insurance in Australia, one of the most important decisions you’ll make is your excess amount. The excess is what you pay out of pocket each time you make a claim, before your insurer pays their share. Your two main options are a $0 excess (no out-of-pocket cost per claim) or a standard excess (typically $100-$500).

Each option has distinct advantages, and the right choice depends on your pet, your budget, and how often you expect to claim.

How Excess Affects Your Premium

There’s a direct inverse relationship between your excess and your monthly premium. Here’s what typical comprehensive cover looks like for a 3-year-old medium dog:

• $0 excess: ~$78/month ($936/year)
• $100 excess: ~$62/month ($744/year)
• $200 excess: ~$52/month ($624/year)
• $300 excess: ~$46/month ($552/year)
• $500 excess: ~$40/month ($480/year)

The difference between $0 and $200 excess is roughly $26/month or $312/year. That’s a significant saving, but you need to factor in the excess you’ll pay when you claim.

Five-Year Cost Calculator

Let’s compare three scenarios over 5 years for a pet that makes an average number of claims:

Scenario 1: Pet with 1 claim per year

• $0 excess: $936/year x 5 = $4,680 total. Excess paid: $0. Grand total: $4,680
• $200 excess: $624/year x 5 = $3,120 total. Excess paid: $200 x 5 = $1,000. Grand total: $4,120
• Winner: $200 excess saves $560 over 5 years

Scenario 2: Pet with 3 claims per year

• $0 excess: $936/year x 5 = $4,680 total. Excess paid: $0. Grand total: $4,680
• $200 excess: $624/year x 5 = $3,120 total. Excess paid: $200 x 15 = $3,000. Grand total: $6,120
• Winner: $0 excess saves $1,440 over 5 years

Scenario 3: Pet with 0-1 claims over entire 5 years

• $0 excess: $936/year x 5 = $4,680 total. Excess paid: $0. Grand total: $4,680
• $200 excess: $624/year x 5 = $3,120 total. Excess paid: $200 x 1 = $200. Grand total: $3,320
• Winner: $200 excess saves $1,360 over 5 years

The tipping point is typically around 1.5 to 2 claims per year. Below that, a $200 excess saves you money. Above that, $0 excess is more cost-effective.

Who Should Choose $0 Excess

A $0 excess is the better choice if:

• Breed-prone pets: French Bulldogs, Cavaliers, Dachshunds, and other breeds that frequently need vet treatment
• Older pets: Pets over 7 years that are more likely to need regular treatment
• Chronic conditions: Pets with ongoing conditions (allergies, ear infections) requiring multiple claims per year
• Budget certainty: You want to know exactly what insurance costs with no surprise out-of-pocket expenses
• Per-claim excess policies: If your policy charges excess per claim (not per condition), $0 is better for frequent claimers

Who Should Choose a Standard Excess ($100-$500)

A standard excess is the better choice if:

• Healthy breeds: Mixed breeds, Kelpies, and other breeds with fewer genetic predispositions
• Young pets: Younger animals claim less frequently on average
• Insurance for catastrophic events: You mainly want protection against big, rare events (accidents, major surgery) rather than frequent small claims
• Lower monthly budget: You prefer the lowest possible monthly premium and can handle paying excess when needed
• Emergency savings: You have funds available to cover the excess amount when a claim arises

Providers Offering $0 Excess

Several Australian pet insurers offer $0 excess as an option:

• Bow Wow Meow: $0 excess available on all plan levels
• RSPCA Pet Insurance: $0 excess option with slightly higher premiums
• PetSure brands: Many PetSure-underwritten brands offer $0 excess at the premium tier
• Petplan: $0 excess available on comprehensive plans

Note that $0 excess is more commonly available on comprehensive plans. Accident-only and budget plans may not offer $0 as an option.

The Middle Ground: Per-Condition Excess

Some insurers use a per-condition excess model, where you pay the excess once per condition per year rather than per claim. This is an excellent middle ground:

• First claim for a condition: you pay the excess
• Follow-up claims for the same condition that year: no excess
• New, different condition: excess applies again

With per-condition excess, a $200 excess becomes much more manageable because you’re not paying it on every single vet visit for an ongoing issue.

Our Recommendation

For most pet owners with healthy, young pets, a $200 excess offers the best value. For owners of high-risk breeds or older pets, $0 excess provides better protection and more predictable costs. Check whether your policy uses per-claim or per-condition excess, as this significantly affects the calculation.

Frequently Asked Questions

Can I change from $0 to a higher excess later?

Yes, most insurers allow you to adjust your excess at renewal time. Switching to a higher excess will reduce your premium from the next policy period. Switching from a higher excess to $0 will increase your premium.

Does $0 excess mean I never pay anything at the vet?

No. With $0 excess you don’t pay an excess, but your policy’s benefit percentage still applies. If your benefit is 80%, you still pay 20% of the eligible vet bill. Only a 100% benefit with $0 excess would mean you pay nothing (which is very rare and expensive).

Is $0 excess the same as 100% coverage?

No, these are separate things. Excess is what you pay upfront per claim. Benefit percentage is the portion of the remaining bill your insurer covers. A $0 excess with 80% benefit means: no excess deducted, but insurer pays 80% and you pay 20% of the total eligible bill.

What excess is most popular in Australia?

The $200 excess is the most commonly selected option among Australian pet insurance policyholders. It offers a good balance between lower monthly premiums and manageable out-of-pocket costs at claim time. However, the best excess for you depends on your specific circumstances.