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Taking care of your furry friend can cause financial strain for pet parents. Find out if it’s worthwhile to get pet insurance.
When a loved one becomes ill or injured, we often look to health insurance to cover a portion of our expenses. But when it comes to our furry friends—who are oftentimes treated like family—only 15.5% of pet owners have pet insurance, according to a recent survey by HelloSafe. Around 60% of Canadian households own a cat or dog, according to the Canadian Animal Health Institute (CAHI).
Pet insurance can be a safety net against the unexpected costs of pet ownership. However, many pet parents choose not to get it, often because they find it cost-prohibitive. So, what’s the best option for pet owners? We’ll examine pet insurance coverage, associated costs, and the alternatives to determine if it’s worthwhile.
If you want to insure your pet, it’s a good idea to compare different providers and understand what they offer.
Some insurance companies provide add-on packages for wellness, prevention and routine care. These may cover the costs of dental care, vaccinations, yearly wellness checkups, and spaying or neutering.
Check whether the insurance company covers dog bites and damage to third-party property (these types of accidents are generally covered under a home insurance policy). Some don’t, and the ones that do may only provide very limited coverage. Also, if you’re thinking of insuring reptiles, birds, rabbits or fish, these are classified as exotic pets. Currently, there is no pet insurance coverage for these types of pets in Canada, and some provinces prohibit keeping certain exotic animals.
There are several factors that determine how much you could be shelling out each month to pay for pet insurance. Lane Kent, head of Pets Plus Us, a pet insurance provider in Canada, says, “The cost varies based on species, breed, location and age, and customers can get even more pricing options by adjusting factors like deductible, annual limit and reimbursement percentage.”
Certain breeds are more prone to health problems, which means it may cost more to insure them.
Generally, the cost of insurance increases as a pet ages, because older pets have a greater chance of becoming ill or getting injured. Some insurance companies set a maximum age limit on coverage. Enrolling your pet while it is young and healthy can give you access to more affordable rates.
According to data from the North American Pet Health Insurance Association (NAPHIA), in 2022, the average monthly premiums in Canada were:
Receiving more coverage and benefits comes with a higher price tag. So it’s important for pet owners to weigh the pros and cons.
The cost of pet insurance has risen steadily from 2018 to 2022. The average annual increase for accident and illness insurance was 3.2% for dog owners and 3.3% for cat owners.
Inflation, increased wages of veterinary staff and higher medical costs have all contributed to the rise in pet insurance premiums since the pandemic. But Kent also says the added costs are tied to advancements in the level of care veterinarians are able to provide. Vet clinics are increasingly able to treat life-threatening conditions like cancer and other diseases, but it can be expensive. Before deciding whether or not to get insurance, pet owners must weigh the possibility of paying thousands of dollars out-of-pocket for medical procedures versus paying ongoing monthly premiums.
There are several strategies you can use to keep pet insurance costs low. First, shop around and compare various policies to understand the coverage available for your pet. Kent suggests considering opting for a higher deductible, or a lower annual limit or reimbursement percentage. And consider if your needs would be met with an accident-only policy.
If you choose to go with a higher deductible, it will mean more affordable premiums. However, be sure that the deductible is an amount you’ll be able to cover if your pet requires urgent care.
An annual limit is the maximum amount of money your pet insurance company will pay out to you annually. Once you’ve reached that threshold, you’ll be on the hook for any additional veterinary costs. For example, if your annual reimbursement limit is $8,000 and your pet’s medical bills come to $10,000 for the year, you still need to cover the difference of $2,000.
Furthermore, for pet parents who own multiple pets, it’s worth asking if you can get a discount from your provider if you insure more than one. Typically, you have to enroll each pet and pay separate premiums.
If you don’t want pet insurance or it doesn’t fit into your budget but you would like to have a backup plan, here are some options to consider:
As a pet parent, you don’t ever want to face a financial barrier when it comes to receiving quality care for your pet. Be sure to research all the options so you are aware of what’s available to you.
Undoubtedly, humans have a strong bond with animals. It’s a personal choice as to whether you believe having pet insurance is right for your circumstances.
“Pet insurance is a great option to help defray the costs of care to keep your dog or cat healthy,” explains Kent. “It can provide peace of mind knowing you’ll be able to say ‘yes’ to what might be an expensive veterinary visit when the unexpected happens.”
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