Pet insurance is one of those products that's almost always negative-expected-value over a typical pet's life — that's how insurers stay profitable. The case for buying it isn't 'I'll come out ahead'; it's 'I can't afford a $10,000 vet bill from savings'. The premium pays for catastrophic-cover protection: cancer treatment ($5-15k), cruciate ligament surgery ($5-8k), snake bite ($3-7k), hip dysplasia surgery ($8-12k). A typical year is just routine and inexpensive — the math gets ugly only if a serious illness hits.

Standard policy structure: monthly premium based on pet age/breed (rises sharply after 7-8 years), 75-85% reimbursement after a per-claim excess of $0-500, annual benefit limit (typically $10-25k), with exclusions for pre-existing conditions. Premiums for a young dog start around $40-80/month; same dog at 12 years old often $180-300/month if you can still get cover. Many insurers stop new applications above age 9-11.

The right question to ask yourself: 'Could I write a $10k cheque tomorrow without it materially affecting my finances?' If yes, self-insure (open a high-interest account, pay the premium-equivalent into it monthly, treat the balance as your pet emergency fund). If no, insurance is genuinely useful — pick the highest-excess policy your finances can absorb to keep premium down. The Insu pet insurance comparison site is purpose-built for this question — see insu.au for ratings.