Is pet insurance worth it in Canada?

We’ll walk you through the current landscape of pet insurance and discuss current premium costs to help you decide if purchasing a policy makes sense for your pet and your wallet.

What pet insurance covers (and what it doesn’t)

Pet insurance is similar to health insurance, but it’s for your pet. Just like with a health insurance policy, you’ll pay a monthly fee, called a premium, to keep the policy active so your furry friend is covered.

• An accident-only policy covers accident-related injuries, such as those from a motor vehicle accident, a torn ligament, food poisoning, and ingested foreign objects.

• An accident and illness policy covers the accidents listed above, plus other types of emergencies, such as broken bones, surgery, hospitalization, prescription medications, digestive issues, infections, and illnesses.

If your pet needs medical care, you’ll take them to the vet as usual. As long as the reason for the visit is covered by your insurance policy, you’ll pay only your deductible and any co-pay, and the insurance provider will cover the rest (or pay up to the coverage limit).

Some conditions may be excluded—pet insurance doesn’t usually cover pre-existing conditions, older pets, specific breeds, or alternative methods of treatment. It also doesn’t typically cover preventative care and dental work unless you purchase a wellness add-on.

Pros and cons of pet insurance

Before making any decision that will impact your finances, it’s wise to consider the benefits and drawbacks. 

How much does pet insurance cost?

Several factors determine how much you could pay each month for pet insurance, including your pet’s breed, location, age, and medical history. Plus, there are factors you can control, such as the deductible, annual limit on coverage, and what percentage of costs your insurer reimburses.

Keep in mind that as your pet ages, the cost of caring for and insuring it increases. Some insurance companies even set a maximum age limit on coverage, so enrolling your pet while it’s young and healthy could unlock more affordable rates.

According to data from the North American Pet Health Insurance Association (NAPHIA), in 2024, the average monthly premiums in Canada were:

• $22.46 for dogs and $18.47 for cats for an accident-only policy 
• $89.18 for dogs and $45.86 for cats for an accident and illness policy

The more coverage and benefits you get, the higher the price tag. For this reason, it’s important to consider the pros and cons to decide whether purchasing insurance is worthwhile for you.

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Why is pet insurance getting more expensive? 

The cost of pet insurance has risen steadily over the past decade or so. The average annual increase for accident and illness insurance was 6.5% for dog owners and 15.24% 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; however, higher costs are also tied to advancements in the medical care that pets receive. 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 vs. paying ongoing monthly premiums.

How to keep pet insurance costs down

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

Shop around and compare policies. Insurers each have unique offerings and calculate premiums differently. Get multiple quotes to find the most affordable rate, but be sure you’re comparing similar coverages. 

Choose a higher deductible. The higher your deductible, the lower your premium will be. That said, be sure you choose a deductible amount that you can afford to pay at a moment’s notice if your pet requires urgent care.

Choose a lower annual limit. This is the maximum amount of money your pet insurance company will pay out to you every year. Once you’ve reached that threshold, you’ll be on the hook for any additional veterinary costs.

Ask about discounts. If you have multiple pets, it’s worth asking if you can get a discount from your provider for insuring them both (or all). Typically, you have to enroll each pet and pay separate premiums.

Is pet insurance worth it?

Like any insurance product, the value of pet insurance largely depends on your unique situation. If you’re unsure whether or not you should spring for a pet insurance policy, see if any of these situations describe you and your pet.

Pet insurance might be worth it if…

• You’d struggle to pay for a big or unexpected vet bill
• Your pet is a breed that’s prone to health issues
• You want peace of mind knowing your pet has access to care
• You enroll when your pet is young and premiums are more affordable

Pet insurance may not be worth it if…

• You can comfortably pay for your pet’s medical care using your savings
• Your pet is older or has pre-existing conditions and might not qualify 
• You only want coverage for routine or preventative care
• Your only option is a policy with low coverage limits or high costs

If you’re still undecided, think about getting accident-only coverage, which works like emergency insurance.

Alternatives to pet insurance

If you don’t want pet insurance or it doesn’t fit into your budget but need a backup plan, here are some other options to consider:

• Open a separate savings account. A high-interest savings account (HISA) is a good option if you want to earn interest while maintaining access to your funds. Set aside a specific amount each month, which will build up a reserve to cover any unexpected expenses. Note, however, that if your pet has a major accident or severe illness, your savings could dwindle quickly.
• Fundraise money for emergency care. Crowdfunding platforms such as Honeyfund, petfundr or Waggle are good options. These crowdfunding services are specifically focused on helping pet owners raise money to cover veterinary expenses.
• Consider virtual vet appointments. This could be an affordable alternative to seeing a veterinarian in person. The TELUS Health MyPet App allows you to book a virtual consultation with a vet or vet tech without leaving your home.
• Ask about lower-cost services. Check your local humane society for a veterinary assistance program or subsidized services. The Farley Foundation helps individuals who are struggling to pay for veterinary care. These programs are typically designed to assist low-income families, people with disabilities, or members of visible minority groups. 

As a pet parent, you don’t ever want to face a financial barrier when it comes to getting quality care for your pet. Be sure to research all the options so you are aware of what’s available to you.

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About Jessica Gibson

Jessica Gibson is a personal finance writer with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about credit cards, insurance, and debt management.

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