Supermarket giant Coles is offering pet insurance for dogs and cats, which will be underwritten by Guild Insurance.

Coles Pet Insurance offers basic cover for accidents and the most common pet illnesses, as well as premium cover for a broader range of conditions.

The products add to Coles’ car, home and landlord insurance, which is underwritten by IAG, and Coles travel insurance which is underwritten by Cover-More.

The pet product offers up to 100% cover prepaid on pre-approved vet bills, 21-day waiting periods, guaranteed lifetime cover and discounts for customers who claim less often.

Chief marketing officer Lisa Ronson says Coles conducted extensive research with pet owners across Australia to find out what was most important to them.

“Australians told us their main concerns with pet insurance were the size of their vet bill and unexpected costs that their insurance didn't cover,” she said. “So Coles Pet Insurance pays approved scheduled treatments directly to the vet, with customers only required to pay for the excess.

Australia has one of the highest pet ownership rates in the world with more than 60% of households owning a pet, though most are not insured.

Members of Coles’ Flybuys loyalty program will also be able to earn points faster when they take out the company’s pet insurance product.