Canadian families spent more on pet insurance in 2021 than ever before, with the total premium volume hitting $313.4 million and the number of insured pets climbing 22.7% in a single year. That rate of growth is the clearest sign yet that pet coverage is shifting from a niche product to a staple of how people manage household costs. Here’s what you actually need to know.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Those numbers tell two stories at once. The jump from 2020 to 2021 — when insured dogs rose 26.5% and insured cats rose 11.1% — shows that a lot more people are buying coverage. But the fact that only about 3% of Canadian pet owners actually have a policy means the market is still early, with room to grow. For context, 60% of Canadian households own at least one pet, and 95% of those owners treat that pet as a family member. The gap between what people spend on their pets and what they insure against is unusually wide, and it’s narrowing fast.
Part of the shift comes down to simple math. The average annual cost of owning a dog in Canada is $3,700, while dog insurance runs about $570 per year. A single emergency vet visit — surgery, imaging, overnight care — can easily wipe out the savings from skipping coverage. More families are running that calculation and deciding the premium is worth the ceiling it puts on their exposure.
Three Factors Pushing More Pet Owners to Insure
You don’t need to look far for why the market is moving. Veterinary costs have climbed steadily — veterinary services revenue in Canada exceeded $5 billion as of the most recent estimates — and the range of what vets can treat has expanded. Cancer therapies, orthopaedic surgery, dialysis: these are options that didn’t exist for most pets a generation ago, and they come with five-figure price tags. Insurance is one way to make those decisions about care rather than about your bank balance.
The second factor is ownership demographics. Millennials and Gen Z now make up a large share of pet owners — 31% and 18% respectively — and these cohorts tend to approach risk differently. They’re more likely to buy insurance early, research coverage online (48% of pet owners already research pet food ingredients online), and treat monthly premiums as a standard household expense rather than a discretionary one. I’d put money on that habit being the main reason growth won’t slow down anytime soon.
Third, the product itself has gotten better. Most Canadian insurers now offer accident-and-illness policies with annual limits up to $10,000, and some — like Fetch by The Dodo and Peppermint — reimburse at 80–90% of the bill. That’s not pocket change coverage; it’s real protection against the kind of expense that could otherwise drain a savings account in one visit.
What a Year Without Insurance Can Cost You
The raw numbers make the risk plain. Pet insurance was the second biggest expense for Canadian dog owners in 2022 at $1,160, and the second largest expenditure for cat owners at $638 — but those numbers include the cost of the policy itself. Without coverage, the same owners would have absorbed the full cost of whatever their pet needed, and the average annual cost of owning a dog in Canada already sits at $3,700. A single bad year — a broken leg, a swallowed object, a chronic illness — can double or triple that figure.
Between 10% and 20% of all cats in Canada die from feline upper respiratory infections, many of which are treatable with early intervention. For dogs, the most expensive breeds to insure — Dogue de Bordeaux, Great Dane, Bullmastiff — are also the breeds most prone to costly conditions like bloat, hip dysplasia, and heart disease. The global pet insurance market is projected to grow by over 20% from 2019 to 2025, and that trajectory makes sense when you stack the premium against the alternative.
One thing worth noting: 6% of dog owners and 2% of cat owners wait until their pets are sick before buying insurance. That strategy backfires almost every time because pre-existing conditions aren’t covered under standard policies. By the time you know you need it, it’s already too late for whatever’s wrong.
The Gaps People Miss When Shopping for Coverage
The biggest mistake I see isn’t skipping insurance entirely — it’s buying a policy without reading what it excludes. In Canada, most insurers do not allow claims for pre-existing conditions, and that definition can stretch further than people expect. A note in a vet record about a limp three years ago? That can be enough to deny a claim on the same leg later. The lesson is to buy coverage early, while the pet has a clean history, and to switch insurers carefully because a pre-existing condition clause follows the animal, not the policy.
Another gap is the annual limit. Many Canadian policies cap payouts at $10,000 per year, which sounds generous until you price out a cancer treatment that runs $8,000–$15,000 plus follow-ups. If you’re insuring a breed prone to chronic conditions, a per-incident or lifetime cap matters more than a low monthly premium. I’d always check whether the limit applies per condition, per year, or over the animal’s lifetime before signing anything.
Claims timing also trips people up. Most policies require that claims be filed within two months of the injury or illness, and late filings are a common reason for denial. The paperwork side isn’t hard — a vet report plus an invoice — but it requires staying on top of dates in a way that’s easy to forget when you’re focused on a sick pet.
| Province | Share of Insured Pets | Regional Trend |
|---|---|---|
| Ontario | 38.9% | Highest concentration, steady growth |
| British Columbia | 20.3% | Second-largest market, rising |
| Alberta | 18.9% | Close behind BC, strong uptake |
| Quebec | 7.1% | Lower penetration despite high cat ownership |
| Nova Scotia | 4.5% | Highest per capita in Atlantic Canada |
How to Compare Policies and Pick the Right Fit
Pet insurance in Canada isn’t one-size-fits-all, and the differences between policies matter more than the price tag. Start with what you’re covering. Accident-only plans are cheap — often under $20 a month — but they won’t help with illnesses like cancer, diabetes, or respiratory infections, which make up the bulk of serious vet visits. Accident-and-illness coverage costs more but covers the scenarios that would actually bankrupt a household budget.
Check the reimbursement rate and deductible structure
Plans like Fetch by The Dodo offer up to 90% reimbursement, while others like Peppermint offer 80% for accident-and-illness with the added benefit of alternative and behavioural coverage. A higher reimbursement rate means a smaller out-of-pocket share per visit, but it usually comes with a higher premium. The deductible — the amount you pay before coverage kicks in — can be annual or per-incident. I prefer annual deductibles because you hit them once per year rather than restarting for every new injury.
Look at what’s excluded before you need it
Pre-existing conditions, waiting periods, hereditary condition caps, and dental coverage all vary by insurer. The Ontario Veterinary Medical Association, for example, offers a policy with unlimited accident-and-illness coverage plus a dental and wellness allowance — a combination that appeals to owners of breeds prone to dental disease. If you’re comparing providers like BCAA, CAA, Costco, or Desjardins, ask for the full policy wording, not just the summary. That document is where the real exclusions live.
File claims promptly and keep records
Most insurers require a claim to be submitted within 60 days of treatment. Keep digital copies of every invoice and vet report the moment they’re issued, not after you’ve mentally recovered from the bill. If a claim is denied or undervalued, the policy documents will spell out the appeals process, and in some cases a legal consultation through a service like JustAnswer Canada can clarify whether the denial is justified or worth contesting.
Frequently Asked Questions
Is pet insurance worth it for indoor cats? ▾
Can I get pet insurance for an older animal? ▾
How long do I have to file a claim after treatment? ▾
Does pet insurance cover dental treatment? ▾
What’s the maximum payout limit for pet insurance in Canada? ▾
Are there pet insurance options for multiple pets? ▾
Pet Insurance Will Likely Keep Expanding
The Canadian pet insurance market is projected to grow 7.4% from 2021 to 2027, and globally the market is expected to surpass $10.2 billion by 2025. Those figures match what the local data already shows: more households are buying coverage every year, penetration is still low enough that growth can continue for years, and the underlying drivers — rising vet costs, younger owners who treat insurance as normal, and better policy options — aren’t going anywhere. If you’re weighing whether to insure a pet, the main risk isn’t the premium. It’s the unplanned expense that arrives years before you expect it.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Tips for Financial Savings in Canada for Structured Independence.
Sources and Further Reading
Understanding Co-op Apartment Insurance for Canadians — How shared-building insurance works and where it overlaps with personal coverage.
Beyond the Loonie: Creative Ways Canadians Are Boosting Their Savings — Practical savings strategies that pair well with added insurance costs.
NAPHIA (2021). North American Pet Health Insurance Association state of the industry report. 🔗
Research and Markets (2022). Global pet insurance market forecast to 2025. 🔗
WealthAwesome & Rover.com. Average cost of pet ownership in Canada. 🔗
Value Penguin. Average pet insurance premiums by provider. 🔗
