Pet Insurance Coverage Items Becoming More Granular Additional Premiums May Be Required Understand Limits and Deductibles Before Taking Out a Policy To Avoid Budget Overruns

When pets fall ill or are involved in accidents, medical expenses are often unpredictable. Many pet owners take out pet insurance to share the financial burden and risks. The Consumer Council compared 24 pet insurance plans available in the market and found that some plans have further refined their coverage items compared with a similar market survey conducted in 2023, including the introduction of new elements such as higher medical coverage limits, cash benefits for specified critical illnesses (e.g. heart failure and stroke), diagnostic imaging, and supplementary therapies. Some of these coverage items were similar to those commonly found in human medical insurance.

However, consumers should note that these newly added protections are often optional or supplementary items and may not form part of the basic coverage. Policyholders may need to pay additional premiums to obtain such protection. In addition, due to constraints such as overall benefit limits, sub-limits, deductibles (also known as excess), and co-insurance percentages, premiums and protection levels may vary significantly across plans even for pets of the same breed and age. Consumers should therefore not focus solely on the premium when choosing a plan, but also consider whether the scope of coverage meets their needs.

With the increasing number of pet-friendly venues, pets are more frequently taken outdoors. In this survey, 19 plans included third-party liability cover as an ancillary benefit. However, such coverage generally applies only to legal liabilities borne by the policyholder, and may not include cases involving nuisance, noise, or mere fright. Some plans may also have shared limits with medical coverage or may not cover legal expenses. The Council encourages the industry to enhance transparency of policy terms to facilitate comparison. Consumers are advised to carefully read the coverage scope and policy terms before taking out insurance, and to assess whether these meet their own and their pets’ needs.

The Council collected information and premiums of 24 pet insurance plans from 7 insurance companies in June 2026, and consolidated the data for verification by the respective insurance companies. Of these, 23 plans covered cats and dogs, while 1 plan only covered turtles and birds. Annual premiums varied widely, ranging from around $1,000 to $14,000. Most plans priced premiums based on factors such as pet breed, age, coverage scope, and benefit limits.

Some Introduced New Coverage Elements

Some Were Optional Add-ons with Extra Premiums

In June 2026, the Council also conducted a small-scale questionnaire survey via its website, "Online Price Watch", and "Oil Price Watch" to understand the insurance uptake, premium budgets, and key considerations when choosing pet insurance among consumers who own or plan to own pets. A total of 104 valid responses were received.

The survey found that over half of pet owners or prospective owners had purchased or were considering purchasing pet insurance. Among which 77% of respondents sought insurance mainly to “alleviate the financial burden of major unexpected medical incidents”, far exceeding those who regarded insurance as “peace of mind as a responsible pet owner” (10%), or as a means to “subsidise routine check-ups and preventive care” (8%). This may reflect a growing demand in the market for coverage of costly diagnostics, major disease treatments, surgical procedures, and post-operative rehabilitation.

The market survey also found that some pet insurance plans had further segmented their coverage items in recent years. According to insurers' responses, compared with 2023, some plans had introduced newer elements which were no longer limited to general consultations, hospitalisation, and surgery. Examples of new elements were increased total medical benefit limits; diagnostic imaging services such as computed tomography (CT) or magnetic resonance imaging (MRI) to be flexibly allocated within the annual medical benefit limit; or optional add-on coverage, including additional limits for feline infectious peritonitis (FIP), cash benefits for renal failure, and lump-sum payouts upon first diagnosis of critical illnesses such as heart failure and stroke. Another plan specifically provided coverage for 121 species of turtles and birds. However, consumers should note that some of these protections may be optional or supplementary and require additional premiums. Some may also be subject to limits per visit, per day, per year, or over a lifetime.

70% of Plans Set Maximum Entry Age at 8 or Below

Do Not Overlook Renewal and Underwriting Arrangements

Most plans determined premiums based on pet age, breed, or renewal underwriting conditions. Taking a Norwegian Sheepdog insured on an annual payment basis as an example, 9 plans listed premiums based on the pet’s specific age. Among these, 6 plans from 2 insurers showed premiums generally increasing with the pet’s age each year. Another insurer’s 3 plans also showed an overall increase with age, though premiums for pets aged 6 months to below 1 year were higher than for those aged 1 year. 2 outpatient plans from the same insurer grouped premiums by age bands, covering up to a maximum age of 15. Another 12 plans from 4 insurers mainly listed premiums or premium range up to age 8; for pets aged 9 or above, renewal was subject to individual underwriting or the insurer’s discretion.

Regarding maximum entry age, 17 plans capped it at 8, similar to 2023, while the remaining 7 plans accepted older pets for first-time enrolment. Among them, 2 plans allowed entry up to age 12, the highest among all plans reviewed. Renewal arrangements also varied: 13 plans specified renewals up to age 12, 13, or 15, while others had no age limit at renewal or allowed annual lifetime renewal. However, some older pets may still be subject to underwriting upon renewal. Consumers should ascertain whether renewal is guaranteed and whether premiums may be adjusted based on age, health condition, or claims history to avoid budget overruns.

Significant Variations in Premiums and Out-of-pocket Expenses Across Plans for Same Breed and Age

To illustrate how policy terms and restrictions (e.g. deductibles and sub-limits) affect out-of-pocket expenses under different scenarios, the Council used a Norwegian Sheepdog as an example and selected 15 comprehensive plans^[1]suitable for simulation comparison. The results showed that higher premiums did not necessarily lead to lower out-of-pocket expenses. Claims outcomes also varied depending on factors such as per-visit outpatient limits, annual claim limits, frequency limits, and sub-limits. For example, if an insured pet aged 5 required 5 identical outpatient treatments within 1 year, the cumulative out-of-pocket expenses under certain plans could increase significantly due to these factors.

In addition, although some plans resulted in lower out-of-pocket expenses in outpatient scenarios, their advantages in both lower premium and lower cost-sharing became less apparent in scenarios involving substantial expenses such as surgery and hospitalisation. Conversely, some plans demonstrated clearer advantages in reducing policyholders’ financial burden in such high-cost scenarios, as out-of-pocket expenses were relatively lower^[2]. Some plans ceased to cover or renew pets after they reached 14 years of age. Overall, consumers should not base their choice solely on a single medical scenario, but should consider premiums alongside protection effectiveness across different ages and medical situations when assessing suitability.

Growing Prevalence of Pet-friendly Venues

Pay Attention to Scope of Third-party Liability Cover

In recent years, pet-friendly venues in Hong Kong have become increasingly common. Starting from 9 July 2026, dogs are allowed to enter restaurants approved by the Director of Food and Environmental Hygiene, leading to more frequent interactions between pets and the public. Among the 24 plans, 19 included third-party liability cover, which applies when an insured pet causes bodily injury or property damage to a third party for which the policyholder is legally liable.

However, such coverage generally does not include all complaints, disputes, or moral liabilities. Claims involving nuisance, noise, fright, or general disputes without legal liability are typically excluded. Policies may also require that incidents be accidental and sudden. If a pet has a history of aggression, or if the owner knowingly fails to take reasonable precautions – such as using a leash, a muzzle, or complying with venue rules – insurers may decline claims or limit compensation according to policy terms. When comparing such coverage, consumers should examine not only the scope and conditions, but also whether it shares limits with medical coverage, the level of deductibles, and whether legal expenses are covered.

Points to note when choosing pet insurance or making claims:

• Before taking out insurance, confirm requirements on pet type, age, breed, and microchipping. Some newer plans have begun to cover non-conventional pets such as turtles and birds, but eligibility, age limits, and renewal arrangements may vary;
• Deductibles may vary by pet age, veterinary network, or coverage items. If a pet has pre-existing conditions, prior surgeries, chronic illnesses, or belongs to a high-risk breed, clarify whether coverage may be declined, premiums increased, or subject to individual underwriting;
• If pets are frequently taken outdoors, boarded, or brought to pet-friendly venues, check the scope of third-party liability cover, including whether it is included in the basic plan, coverage limits, per-claim deductible, and whether legal expenses are covered;
• In the event of third-party claims arising from an incident, policyholders should not reach private settlements or admit liability. They should notify the insurer promptly for handling by professionals. It is advisable to keep detailed records of the incident, including time, location, parties involved, pet condition, and environment, as well as relevant communications, whether a leash or muzzle was used, whether venue rules were posted, and whether CCTV footage or witnesses are available. In cases involving bodily injury or death, medical reports and receipts should be retained to ascertain liability.