Baking bread, marathon Zoom calls and home renovations weren’t the only booms during the COVID-19 pandemic: One-third of Canadian pet owners welcomed a new pet into their home. That’s over three million pets, according to 2021 national survey. Dogs and cats are the most popular pet choices. In fact, of the 16.4 million pets in Canada, 7.9 million are dogs—and that number is growing, according to the Canadian Animal Health Institute’s 2022 Pet Population Survey.
These pandemic puppies undoubtedly brought joy, companionship and an antidote to isolation—but also additional expenses. The annual cost of owning a puppy is almost $4,000, while the average cost of owning a dog is over $2,800, according to the Ontario Veterinary Medical Association. And that’s before any unexpected vet bills when Fido swallows a squeaky toy or get sick with a nasty ear infection.
One way to guard against giant and unexpected vet bills is with pet insurance. Here’s a guide to the costs.
How Much Does An Average Pet Insurance Policy Cost?
For an adult dog, pet insurance ranges from $33 to $95 a month, according to a Forbes Advisor Canada analysis of monthly premiums supplied by Petinsurer.com. Overall, pet insurance costs an average of $76 per month for $5,000 in coverage for the year.
You can find a pet insurance policy that fits almost any budget. A good rule of thumb is that pet insurance rates go up with the amount of coverage offered and benefits, such as comprehensive dental and wellness plans.
Other factors that affect the cost of pet insurance is the pet’s breed and age. Here’s a comparison of average rates across Canada:
Remember that your rate also generally rises every year at renewal time as your pet gets older.
How Much Is Pet Insurance for Dogs?
As you’ll see below, pet insurance costs vary depending on the pet insurance company. That’s why it’s a good idea to compare pet insurance options from multiple insurers before you buy a policy.
Average cost of dog insurance with $5,000 of annual coverage
The average cost of dog insurance with unlimited annual coverage
Factors In Pet Insurance Costs
Pet insurance companies use multiple factors when setting their rates including:
Coverage type
One of the biggest factors determining pet insurance cost is the coverage. For example, a comprehensive policy with an unlimited maximum payout that covers a range of treatments and also routine care will cost much more than a basic accident-only policy.
Here are the types of pet insurance plans:
- Accident and illness coverage. This type of policy helps pay for vet bills for unexpected incidents, such as a laceration from an accident, and illnesses, such as an ear infection or cancer. This also covers associated expenses such as diagnostic tests, surgeries, X-rays, hospitalization, prescription medications and emergency care. A plan may also include coverage for dental illnesses, alternative therapies, behavioural therapy and pet ownership benefits, such as lost pet advertising.
- Accident-only coverage. This type of policy covers certain medical expenses if your pet suffers an accident, such as a broken bone. Coverage usually also includes diagnostic tests, surgeries, X-rays, hospitalization, prescription medications and emergency care.
- Routine wellness plans. This type of policy covers medical expenses for wellness exams, flea and heartworm prevention, vaccinations and other routine annual care. These plans are typically add-ons, but may be included in more comprehensive accident and illness plans. You can not buy a wellness plan on its own.
Deductibles
A deductible is the amount of money you pay out of pocket every year before coverage starts. Most insurance companies in Canada offer a $100 base deductible. Some insurance providers, such as OVMA Pet Health Insurance, Pets Plus Us, Furkin, Trupanion and Fetch By The Dodo allow you to choose your deductible. The higher your deductible amount, the less you pay in pet insurance each month. You only pay your deductible once per year, unless you have an accident-only plan that stipulates a per incident deductible.
Reimbursement levels
Pet insurance policies are reimbursement-based, meaning you usually have to pay your veterinary upfront for your pet’s medical bills and then submit a claim to the pet insurance company (Trupanion and PHI Direct can pay your vet directly).
Most Canadian insurance companies offer a standard 80% reimbursement rate, but Trupanion offers a 90% rate, while Pets Plus Us and Fetch By The Dodo allow you to choose between 70%, 80% and 90% rates. Pet insurance costs are higher for better levels of reimbursement. The amount you pay is called the co-insurance and you pay that with every claim.
Here’s how it works: Say you have a pet insurance plan with a $200 deductible and 80% reimbursement level:
- If your pet has a medical procedure that costs $1,500 and it’s your first claim of the policy period, you would first pay $1,500 to the vet.
- Your co-insurance, or the amount you pay, is $300 or 20% of the bill.
- Your deductible is $200.
- Your insurer reimburses you for $1,000 ($1,500 – $300 – $200 = $1,000).
If your pet has a second procedure the same year and it costs $1,000:
- You pay $1,000 to the vet.
- Your co-insurance is $200.
- Your insurer reimburses you for $800 because you have already paid the deductible for the year.
Pet’s breed
Your pet’s breed is a factor in determining pet insurance costs. That’s because some breeds are predisposed to illnesses, which typically translates to more veterinary visits and higher medical bills. For example, some larger breeds of dogs are more susceptible to heart and hip issues.
Age of pet
A pet’s age is another piece of the pet insurance cost puzzle. As your pet gets older, the chances of illness and injury increase, which results in higher pet insurance costs.
Location
Your postal code can also affect your rate as urban centres are usually more expensive due to higher property values (and therefore rents or mortgage payments), higher insurance rates, better wages for staff and improved access to cutting-edge equipment and treatment options. For example, using a quote from PHI Direct, the cost to insure an eight-month-old miniature poodle for $5,000 of coverage with a $200 deductible and 80% reimbursement is $47.22 in Vancouver, $26.68 in Toronto and $19.47 in Halifax.
What Does Pet Insurance Cover?
Most pet insurance companies offer plans that will cover issues such as:
- Accidents and injuries (such as broken bones, bite wounds, and swallowing objects or toxins).
- Cancer (if it develops after plan is in place and not pre-existing).
- Diagnostic tests (such as MRIs, X-rays and lab work).
- Emergency care.
- Illnesses (such as diarrhea, urinary tract infections and vomiting).
- Prescription medication
- Specialty care and therapies.
- Surgeries and hospitalizations.
- Specialist referrals.
What pet insurance covers will depend on the type of plan you purchase.
Review a plan’s benefits, coverage types and limits before buying to make sure it fits your needs.
What Does Pet Insurance Not Cover?
Pet insurance can offer your pet and your wallet vital protection, but it doesn’t cover everything. No pet insurer covers pre-existing conditions, which are defined as any illness or injury that started prior to coverage beginning, including any waiting period. Pet insurance policy doesn’t typically cover expenses such as:
- Boarding
- Breeding, pregnancy or whelping.
- Cloning
- Cosmetic procedures (such as ear cropping or tail docking)
- Experimental treatment
- Food, dietary and nutritional supplements
- Grooming
- Obedience classes
Pet Insurance Cost FAQs
What discounts are offered by pet insurance companies?
Similar to other types of insurance, you can sometimes get discounts for a pet insurance policy.
Pet insurance discounts may include annual pay discounts, multi-pet discounts and bundling multiple types of policies. You may also save if you’re in the military or if the policy is part of your employer’s benefits.
Will pet insurance offset the average cost of medical treatments?
Pet insurance will offset the cost of medical treatments that are covered, but whether you come out ahead will depend on how much you’ve been paying in pet insurance premiums. It will also depend on your maximum coverage deductible and reimbursement.
If you have an accident and illness policy with a maximum coverage of $5,000, a deductible of $300 and reimbursement rate of 80%, and you’re handed a vet bill for $5,800 for treating glaucoma, you’d pay $2,100 out of pocket ($800 not covered by insurance + $1,000 co-insurance amount + $300 deductible).
If you have a maximum coverage of $10,000, a deductible of $100 and a reimbursement rate of 90% and you’re handed that same veterinary bills, you’d pay only $680 ($580 co-insurance amount + $100 deductible). You’d also pay higher monthly premiums.
Do dogs really need insurance?
Medical bills for dogs can quickly add up if they are injured or fall ill. Pet insurance can be a good way to cover unexpected health care costs that pop up.
When considering if your dog needs pet insurance, run the numbers. Estimate the cost of veterinary services for medical issues that could arise and get quotes for pet insurance for your specific dog. You may find a cheap pet insurance plan is your best bet or instead decide to put money aside in a savings account for potential medical costs. Taking your dog to the vet on an annual basis is a good way to stay ahead of costly vet bills and ensures the best quality of life for your pet.
What percentage of dogs are insured?
Only 4.35% of dogs in Canada are insured by pet insurance, according to the North American Pet Health Insurance Association (NAPHIA).
However, more people are realizing the benefits of pet insurance, as NAPHIA found pet insurance had a growth rate of about 28% in 2021.
Pet insurance may be a good choice if you’re worried about future medical expenses for your pet. To find out if pet insurance is right for you, compare pet insurance providers and see if their coverage and cost fit your budget and needs.
Does pet insurance increase with age?
Pet insurance costs typically increase with a pet’s age. Older pets are more likely to fall ill or be injured, so pet insurance companies raise rates as your pet ages.
Your rate for pet insurance can go up at renewal time—and your pet’s age is one reason you may see a rate hike. Forbes Advisor Canada’s analysis of rates of a pet insurance policy found by the time your pet turns age 8 you can see your costs start to double.
Also, many pet insurance companies stop offering new pet insurance policies after pets reach a certain age. The maximum pet age for buying new pet insurance plans varies. Some companies have a maximum age limit of 10 and others sell coverage for pets age 14 or older. Some insurers will also require comprehensive blood work and a medical exam before enrolling senior pets.
If you want pet insurance coverage, it’s better to buy the plan before your pet is considered a senior and has developed medical issues. Pre-existing conditions are not generally covered by pet insurance, which may be more of an issue for an older pet.
