CoverMy Pet says it has entered the market with a no-frills approach that aims to stop insurance being dropped due to rising premiums. 

It says seven in 10 Australian households own a pet – one of the highest proportions globally – but the country has one of the lowest rates of pet insurance. 

GM Grant Pugh says pet owners often cancel policies after three or four years because the premiums have increased sharply since they signed up, but they may find themselves “grossly out of pocket” if a pet then becomes ill or injured. 

“With the current cost of living, combined with interest rate rises and strain on fuel and grocery prices, it’s easy to see why families make the tough decision to ditch their pet’s insurance but then regret it later,” he said. “We are hoping to change that.” 

CoverMy Pet announced earlier this year that it would enter the market, and it recently started offering insurance for dogs and cats. 

The business is an authorised representative of Petplan Australia, with underwriting through Sovereign Insurance Australia. 

CoverMy Pet says many people are paying high premiums for cover levels they may not need. Only 1.49% of pet owners have spent more than $8000 on their animals at the vet during the past 12 months. 

The insurer says it offers three simple policies tiered up to $8000 of vet bill cover, with no unnecessary extras.