General information only. This isn't financial advice, and we don't recommend any insurer or policy. We quote two published horse insurance documents only to show how policies are typically structured; the terms of any policy you're offered may be different. Read the product disclosure statement (PDS) and consider getting advice from a licensed adviser or broker before you buy.

A horse can cost a lot of money in one bad afternoon: a colic surgery, a fence injury, or a rider hurt by someone else's horse. Insurance is one way to manage that risk. It isn't the only way, and it isn't always the best value, so it's worth knowing how it works before you buy.

There's no Moneysmart page specific to horses, but ASIC's Moneysmart guide to pet insurance covers the same principles: types of cover, waiting periods, pre-existing conditions, benefit caps, exclusions and complaints [1]. We've combined those with what two published Australian equine policies actually say.

The main types of horse cover

Horse policies are usually built from sections you can choose. In the two equine PDSs we read, the sections included [4][5]:

  • Mortality (death) cover. Pays if the horse dies or is humanely destroyed, within the policy's terms. One policy also covers loss by theft or straying and says cover applies Australia-wide, including in transit [4]. The other has a separate theft section [5].
  • Veterinary fees. Pays vet bills for covered accidents and illnesses, up to a limit. One policy offers an extension that raises the vet fee limit for colic surgery to a set maximum per horse [4].
  • Public liability. Covers compensation you become legally liable to pay for bodily injury or property damage caused by or in connection with your horse [4].
  • Harness, saddlery and tack. Covers listed gear, with a per-item limit unless the schedule says otherwise [4].

Moneysmart's general pet insurance categories are a useful way to think about this: accident-only cover, accident and illness cover, and comprehensive cover that may include some routine care [1]. Check which of these a horse policy actually is.

Agriculture Victoria lists insurance for the horse, and against any damage it may cause, among a horse owner's normal responsibilities when agisting [6]. Some agistment properties may ask you about it, so check your agreement.

Agreed value vs market value

For mortality cover, how the payout is worked out matters as much as the sum insured. The Affinity PDS explains two approaches [4]:

  • Fair Market Value: the price at which ownership would change between a willing buyer and a willing seller. If this applies, the policy pays the fair market value at the time of death or the sum insured, whichever is lower.
  • Agreed Value: a value agreed up front, which is paid (within the policy's terms and time limits) at the time of death.

The difference matters if your horse's value drops after an injury or with age. Ask any insurer which basis applies, and whether it changes over time.

Terms to understand before you buy

Pre-existing conditions

Moneysmart says most insurers won't cover pre-existing conditions, which are conditions your animal showed signs and symptoms of before being insured [1]. It's important to tell the insurer about them; if you don't, you may not be covered [1].

Horse policies can define this broadly. The Victor PDS, for example, lists conditions that are treated as pre-existing, including any form of arthritis, colic episodes where previous colic surgery has been performed, sarcoids and melanomas, tendon or ligament injuries in the same or opposite limb, and recurring foot-related lameness [5].

Switching insurers? Moneysmart warns that anything previously claimed for would be considered a pre-existing condition by a new insurer [1].

Waiting periods

Most pet policies have a waiting period between signing up and being able to claim, and it can differ by type of treatment [1]. Illnesses that start during a waiting period are a common exclusion [1].

Benefit caps and limits

Check the annual limit and any per-condition or per-item limits. Moneysmart gives an example: a procedure might cost $2,000, but the insurer will only cover $500 [1].

Excess

Equine policies usually have an excess (or "deductible"): the amount you pay towards each claim. The two PDSs we read handle it differently: one may reduce the claim payment by the excess or ask you to pay it first [4], while the other pays the amount in excess of the deductible [5]. Your schedule shows the amount.

Exclusions

Read the exclusions list in full. Moneysmart's common pet insurance exclusions include elective treatments, illnesses during the waiting period, and diseases where there's a known vaccine [1]. In the equine PDSs, examples include:

  • complementary treatments such as acupuncture, chiropractic, physiotherapy and nutraceuticals, as defined in the policy [5]
  • death or humane destruction resulting from a disease outbreak where the horse is under a government quarantine or restriction order [5].

That last one is worth thinking about if you live in an area affected by diseases such as Hendra or strangles. See our Hendra guide and the vaccination schedule.

Age and breed

Moneysmart notes that some breeds have health risks that make cover expensive or unavailable, premiums can differ by age, and cover is most effective if you insure while the animal is young and keep the cover [1].

Claims: what to expect

You usually pay first. Moneysmart says most pet insurers make you pay the vet bill in full and then claim [1]. Make sure you can cover an emergency bill while you wait.

Humane destruction has conditions. This is the part of a horse policy most worth reading before you need it. In the Affinity PDS, the insurer must appoint a vet who confirms in advance that humane destruction is necessary, although it may accept confirmation after the event in some circumstances [4]. If the insurer decides the definition wasn't met, it may not pay [4]. Ask your insurer what to do in an after-hours emergency, and keep its claims number with your vet's.

A post-mortem may be needed. The same PDS says the insurer may require a full post-mortem, at its cost, and one will always be required if the attending vet can't determine the cause of death [4].

Keep records. One PDS says the insurer needs evidence of ownership and of the loss before paying, and suggests keeping photos and documents [5]. A horse health record with vaccination, worming and vet history helps here, and also helps you answer pre-existing-condition questions accurately.

Cooling-off periods

If you change your mind, you can usually cancel within a cooling-off period and get a refund, as long as you haven't claimed. The two equine PDSs we read had cooling-off periods of 21 days [4] and 14 days [5]. Check the period in your own PDS.

Insurance or savings?

Moneysmart points out that pet insurance may not cover everything, can add up to thousands of dollars in premiums over an animal's life, and that putting money aside each pay may be a better option for some people [1]. There's no right answer for everyone. Things to weigh up:

  • Could you pay a large emergency vet bill without insurance?
  • Is the main risk to you vet bills, the loss of a valuable horse, or liability to other people?
  • Do your riding club, competition or agistment arrangements require any cover?

Our horse cost calculator can include insurance premiums or a savings buffer in your yearly budget, and our guide to what a horse costs per year covers the other costs to plan for.

How to compare policies

A PDS must include information about the product's key features, fees, commissions, benefits, risks and complaints handling [2]. Use the same list for every policy you look at:

  • Which sections are included: death, theft, vet fees, liability, tack
  • Agreed value or market value, and the sum insured
  • Annual, per-condition and per-item limits
  • Excess for each section
  • Waiting periods
  • Pre-existing condition definition
  • Exclusions, including disease outbreak and complementary treatment
  • Conditions for humane destruction and post-mortem
  • Age limits and what happens as your horse gets older
  • Cooling-off period
  • Who handles claims, and the after-hours contact

To find insurers, Moneysmart suggests the Insurance Council of Australia's "Find an insurer" tool [1]. Our directory also lists insurance, legal and finance providers that work with horse owners; listing isn't an endorsement.

If something goes wrong

If your claim is rejected or you think a policy was sold to you unfairly, Moneysmart says to contact the provider's internal dispute resolution team first. If you can't reach an agreement, you can take a complaint to the Australian Financial Complaints Authority (AFCA) for free, independent dispute resolution [1][3]. Both equine PDSs we read describe this process and refer to the General Insurance Code of Practice, which their insurers have adopted or signed [4][5].

Frequently asked questions

How much does horse insurance cost? It depends on the horse, the cover and the insurer, so we don't publish figures. Get written quotes for the same cover and compare them using the checklist above.

Does horse insurance cover colic surgery? It depends on the policy. One PDS we read offers an extension for colic surgery [4], while another treats colic after previous colic surgery as pre-existing [5]. Read the vet fees section carefully.

Can I insure an older horse? Moneysmart notes insurers may charge different premiums based on age [1]. Check the PDS for any age limits, and ask before you assume.

Whatever you decide, read the PDS before you buy, and keep it somewhere you can find it in an emergency.