Insu›Explainers›What is pet insurance reimbursement?
Explainer
What is pet insurance reimbursement?
Pet insurance reimbursement is the percentage of the eligible claim amount your insurer pays you back after you've paid the vet. In Australia, that percentage is almost always 70%, 80%, or 90% — sometimes 60% on lower-cost tiers or 100% on premium tiers like Coles Ultimate. The reimbursement % you choose at signup is one of the two biggest levers (alongside excess) determining your out-of-pocket cost on every future claim.
How reimbursement % actually works
Pet insurance in Australia is a reimbursement model — you pay the vet directly at the time of treatment, then submit a claim, and the insurer pays you back a percentage of what you spent (less excess). This is structurally different from human health cover, where the provider often bills the fund directly.
The reimbursement % is the headline lever. If you have a $5,000 vet bill that's covered under your policy, here's what each percentage looks like once you've paid the standard $200 excess:
The 20-percentage-point difference between 70% and 90% reimbursement is $960 on a single $5,000 claim. Across multiple claims in a year, that gap compounds — a pet with a chronic condition filing $20,000 of claims annually would see $3,840 difference in out-of-pocket cost between 70% and 90%, before the annual benefit limit even comes into play.
How reimbursement % affects your premium
Higher reimbursement percentages cost more in premium. The insurer is paying out more per claim, so the price reflects that risk. The exact relationship varies by brand, but a rough rule of thumb across Australian pet insurance:
- Choosing 70% instead of 80% typically reduces premium by 8–12%
- Choosing 90% instead of 80% typically increases premium by 12–18%
- Choosing 60% instead of 80% (where available) typically reduces premium by 15–22%
The premium savings from a lower reimbursement % look attractive in year one. The math gets less attractive as soon as you actually file a claim — a single $4,000 vet bill at 70% reimbursement vs 80% costs you $400 more out-of-pocket, more than the annual premium saving for many pets. The reimbursement % choice is essentially a bet on how many claims you expect to file: lower reimbursement makes sense for pets you expect to claim less for, and vice versa.
Reimbursement options at each AU pet insurer
| Brand | Reimbursement options | Highest available |
|---|---|---|
| RSPCA PetFlex | 60 / 70 / 80 / 90% | 90% |
| Knose | 70 / 80 / 90% | 90% |
| Pet Circle Insurance | 70 / 80 / 90% | 90% |
| Petsy | 80 / 90% | 90% |
| Coles Pet Insurance | 80 / 100% (Ultimate tier) | 100% |
| Bow Wow Meow | 80% only | 80% |
| Pet Insurance Australia | 80% only | 80% |
| PetsOnMe | 80% only | 80% |
RSPCA PetFlex offers the most flexibility — four options across the 60–90% range, useful for buyers wanting to either trade reimbursement for premium savings or maximise reimbursement. Coles Ultimate is the only brand offering 100% reimbursement (no out-of-pocket beyond excess on covered claims) but only on the highest tier. The PetSure-administered brands (BWM, PIA) and PetsOnMe lock reimbursement at 80% with no flexibility either way.
How reimbursement % interacts with the rest of the policy
Reimbursement % is one of three numbers that combine to determine what you'll actually receive on a claim. The full calculation is:
Steps 5 and 6 are where the headline reimbursement % stops mattering. If your dental claim is capped at $1,500/year by a sub-limit, the brand's 90% reimbursement option doesn't help you above that ceiling. Reimbursement % is one important lever, not the only one. The best total cover for your pet depends on all six steps interacting — which is why headline marketing claims like "we pay 90%" need to be checked against sub-limits and exclusions before they can be compared meaningfully.
Should you choose the highest reimbursement option?
If your pet is healthy, young, low-claim-history, and you have the cash flow to absorb a single bad year of claims at 70% reimbursement, the lower-reimbursement option saves real premium money over the policy life. If your pet is older, has known health issues, or you'd rather have predictable out-of-pocket cost, the higher reimbursement option transfers more risk to the insurer at higher premium.
For most buyers, 80% reimbursement is the sensible middle ground — it's the most common option offered, the median premium tier, and the cover gap on a typical claim ($1,000 out of $5,000) is large enough to be felt without being catastrophic. 90% reimbursement is worth paying for if you specifically want to minimise variable cost across multiple claim years; 70% is worth choosing if you specifically want the lowest possible premium and you'd rather pay more on claims when they happen.
This article is general information based on publicly available data. It doesn't constitute personal financial advice and isn't a recommendation about any particular pet insurance product. Reimbursement options, excess tiers, and sub-limits change between PDS revisions — always read the current Product Disclosure Statement before purchasing. Published 1 May 2026.