Average cost of pet insurance in Canada
Obtaining basic pet insurance can be cost-effective. The average monthly insurance premium in Canada stands at $39 for a dog and $29 for a cat. While this monthly cost may appear reasonable, it can escalate based on several factors:
The age of your pet: Older pets, prone to health issues, are more expensive to insure. Purchasing pet insurance early in your pet’s life is crucial.
The type of pet: Certain cat and dog breeds are more predisposed to chronic health problems, and rarer pets, such as reptiles, may limit your insurance options, often resulting in higher costs.
The level of coverage you choose: Pet insurance companies offer various coverage tiers, ranging from basic and affordable plans to premium options that include wellness visits.
Is pet insurance a worthwhile investment?
Unless you possess a substantial emergency fund in a Tax-Free Savings Account, pet insurance generally proves to be a prudent means of avoiding difficult decisions between your finances and your cherished pet. However, not all pet insurance plans suit every situation, prompting the need to ask specific questions before committing to a policy.
What is the purpose of your pet insurance?
Define what you want your pet insurance to cover. Similar to other insurance types, pet insurance may come with expensive and unnecessary extra features. Creating a list of desired coverage in advance can help you sidestep unnecessary upsells. It is crucial not to over-purchase coverage, as it can result in higher costs.
What type of pet do you have?
The type, breed, and age of your pet impact the insurance coverage you choose. Purebred dogs, for example, may require more coverage due to their susceptibility to chronic health issues. Similarly, cats, with longer lifespans than dogs, might benefit from policies that do not increase deductibles based on age. Exotic pets may face limitations in available insurance coverage options.
What can you afford to pay out of pocket?
Evaluate how much you can afford to pay out of pocket. If you possess a $10,000 emergency fund in a high-interest savings account and are comfortable allocating a significant portion to your pet’s expenses, your insurance needs differ from someone with a reduced income and no emergency fund. Regular contributions to a designated “pet fund” within your budget may allow you to opt for a less expensive insurance policy.