For more on this part of the insurance industry:
1. visit our animals insurance page for a look at all products in this sector
2. or focus in on all of the pet insurance products available on IB Markets!
Pet insurance is a policy that helps pet owners cover unexpected veterinary costs. It protects animals from illnesses, injuries, and routine care expenses. It covers a wide range of pets, including:
Despite the rising number of pets in Canada, only three percent of pet owners have insurance. With vet costs increasing, more Canadians are considering coverage to manage expenses.
A Toronto family faced a $12,000 vet bill in 2023 after their dog needed emergency surgery. Without insurance, they had to crowdfund the money to save their pet.
If they had insurance for pets, a large portion of the cost would have been covered. It would have reduced financial stress and other problems.
More Canadians are getting pets, and the pet industry is expanding with grooming, training, and premium pet products. Digital tools are improving insurance access and claims processing.
Alongside these trends, issues in pet insurance are also present. These include:
rising vet costs: advancements in veterinary care increase treatment prices, leading to higher insurance premiums
low insurance adoption: only a small percentage of Canadian pet owners have coverage, leaving many financially at risk
cybersecurity threats: pet insurance platforms store sensitive data that could be exposed in breaches
Brokers should watch for fraudulent claims and policy manipulation, as these can damage trust and lead to monetary losses. Improving data security and vetting claims carefully can reduce these concerns.
Providing food and care is essential, but unforeseen medical costs can happen. Pet insurance aids in covering those expenses and ensuring proper treatment.
Insurance for pets helps pay for vet costs when a pet gets sick or injured. Here is how it works:
Most Canadian pet insurance companies operate on a reimbursement model, where owners pay vet bills upfront and get reimbursed later.
Some insurers offer direct payment to participating veterinarians. This removes the need for owners to pay large sums up front.
Pets bring comfort and joy, offering companionship and security. This insurance helps guarantee that they receive proper medical care when sudden health issues arise.
Below are the average monthly costs in Canada:
|
Pet type |
Average monthly cost |
Coverage details |
|---|---|---|
|
dogs |
$33 – $95 |
based on $5,000 annual coverage, $100 deductible, and 80 percent reimbursement |
|
cats |
$25 – $50 |
lower cost than dogs due to fewer health risks |
|
general average |
$76 |
includes accident, illness, and wellness options |
The actual cost of this insurance depends on the type of pet, coverage amount, and provider.
These options allow pet owners to pick a plan that best fits their pet's needs and their budget.
Insurance coverage for pets can be voided for several reasons:
Yes, because any past medical issues may be labeled as pre-existing if reapplying later, making coverage harder to get. Vet bills could lead to high out-of-pocket costs without insurance.
Although this insurance supports pet owners, there are some downsides:
In Canada, pet insurance is not mandatory. But laws like Ontario's Provincial Animal Welfare Services (PAWS) Act say owners must provide proper vet care.
If insurance is not in place, vet bills for medical treatment must be paid directly by the owner.
