Cost-of-living pressures have been impacting pet care

Cost-of-living pressures have been impacting pet care, and research has found a dollar figure leading to a horrifying decision.

Many pet owners underestimate how much vet bills will cost. Picture: iStock

Rising interest rates and other living costs have produced a financial tipping point where Australians begin to consider euthanasia for a sick pet rather than pay thousands of dollars in veterinary bills.

Research by insurance company PetSure has found a majority of pet owners underestimate animal treatment costs, some believing they are four or five times cheaper than the actual bill.

It has found that four out of five pet owners believe $3000 is too much to pay and some are “reluctantly taking the decision to euthanise their pet”.

PetSure’s research and deep dive into its claims database comprising more than 700,000 animals found hip replacements cost $5000-$6000 but many people believe they cost below $1000, while cancer treatment costs have jumped 55 per cent in the three years to 2023 to $1514.

Broken bones in pets can cost owners $5000. Picture: iStock

Treatment costs for common pet conditions such as broken bones or ingesting a foreign body average more than $5000, it says.

It is estimated that up to one million of the nation’s 11.7 million dogs and cats are insured.

Veterinary costs have been a fast-growing category in the Consumer Price Index over the past two years, just as households have had to deal with a 62 per cent jump in mortgage repayments along with surging grocery and energy bills.

PetSure CEO Alex Thomas said there was a “worrying misconception around the reality of treatment costs”.

She said while some television reports had claimed large numbers of people were abandoning pet insurance because of the high cost of living, PetSure had not seen this.

“Maintaining pet insurance becomes even more important in tough economic times when an unexpected vet bill can literally become the difference between life and death.”

Comparison websites say pet insurance usually costs between $25 and $80 a month, but PetSure’s Ms Thomas said there was no “typical” cost because of factors including breed and age.

“Typical excess values for pet insurance range from $0 to $500 and most policies reimburse between 70 per cent and 90 per cent of the treatment cost, up to an annual limit of $30,000,” she said.

Households with pets are more likely to have mortgages than renter households, and JBS Financial Strategists CEO Jenny Brown said higher veterinary bills “tip into the cost-of-living bucket”.

“Vets are expensive,” she said.

Ms Brown said she had not directly seen people choose euthanasia for financial reasons – it was more likely because they wanted to avoid further pain and suffering for a beloved pet.

“I see people often surrendering pets because they can’t keep them any longer,” she said.

PetSure’s claims figures shows a pet of average health has a lifetime average healthcare cost of $30,000, but one in 10 incur expenses above $100,000.

Australian Bureau of Statistics CPI numbers show veterinary costs climbed 27 per cent between March 2020 and March 2024, while overall inflation increased 18 per cent in the same period.

Originally published as Cost-of-living pressures have been impacting pet care