Is pet insurance worth it in Canada?

We will take you through the current pet insurance landscape and discuss current premium fees to help you determine if your purchase policy makes sense for your pet and wallet.

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What does pet insurance cover (what is not)

Pet insurance is similar to health insurance, but it applies to your pet. Just like having a health insurance policy, you will pay a monthly fee, called premium, to keep that policy active so that your furry friends can be covered.

• Accident policy only Covering accident-related injuries such as vehicle accidents, ligament tear, food poisoning and ingestion of foreign objects.

• Accident and disease policy Cover the accidents listed above, as well as other types of emergencies such as fractures, surgery, hospitalization, prescription medications, digestive problems, infections and diseases.

If your pet needs medical care, you will take it to the vet as usual. As long as your policy covers the reasons for access, you will only pay your deductible and any co-payments, and the insurance provider will cover the rest (or pay to the coverage limit).

Certain conditions may be excluded – PET insurance generally does not cover pre-existing conditions, older pets, specific breeds, or alternative treatments. Preventive care and dental work are not usually covered unless you purchase health add-ons.

Pros and cons of pet insurance

It is wise to consider the benefits and disadvantages before making any decisions that affect your financial situation.

How much does pet insurance cost?

Several factors determine how much pet insurance you can pay per month, including the breed, location, age and medical history of your pet. Additionally, you can control factors such as deductions, coverage limits, and the percentage of your insurer’s reimbursement fees.

Remember that as pets age, the costs of care and insurance increase. Some insurance companies even set maximum age limits on coverage, so registering your pet when your pet is young and healthy can free up more affordable prices.

According to the North American Pet Health Insurance Association (NAPHIA), the average monthly premium in Canada in 2024 is:

• $22.46 for dogs and $18.47 for cats, for pure accident policy
• $89.18 for dogs, $45.86 for cats

The more coverage and benefits you get, the higher the price. Therefore, it is important to consider some pros and cons to decide whether the insurance is worth it.

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Why is pet insurance becoming more and more expensive?

The cost of pet insurance has steadily risen over the past decade or so. The average annual growth of accident and disease insurance is 6.5% and cat owners is 15.24%.

Inflation, increased wages for veterinary workers and higher medical expenses have led to higher pet insurance premiums since the pandemic; however, higher costs are also related to the improvements in the health care that pets receive. Veterinary clinics are increasingly able to treat life-threatening conditions such as cancer and other diseases, but can be expensive.

Before deciding whether to obtain insurance, pet owners must weigh the possibility of paying thousands of dollars to medical procedures, paying ongoing monthly premiums.

How to reduce pet insurance costs

There are several strategies you can use to keep your pet insurance cost low:

Shopping and comparing policies. Insurers each have unique products and calculate premiums in different ways. Get multiple quotes to find the most affordable price, but make sure you compare similar coverage.

Choose a higher deductible. The higher your deductible, the lower your premium will be. That said, if your pet needs urgent care, make sure you choose a deductible deduction.

Choose a lower annual limit. This is the biggest payment your pet insurance company will pay you every year. Once this threshold is reached, you will struggle to pay for any additional veterinary expenses.

Ask for discounts. If you have multiple pets, it’s worth mentioning whether you can get discounts from your provider to ensure they have both (or all). Usually, you have to register for each pet and pay a separate premium.