Should You Get Pet Insurance or Self-Fund?

A conversation with a customer recently spurred us to write on pet insurance. They had a pet insurance high monthly premium. Then their dog got sick. After paying the deductible (fixed amount you pay before you can get reimbursed), they got reimbursed 80% of expenses. Soon after, the monthly premium for the pet went up by 30%. Typically, all pet insurance companies state there is no causation between your insurance claims and price hikes. However subsequently, the dog got sick again and the cost of their pet insurance jumped by another 23%. At the end, they were only covered for 10% and felt cheated.

So, should you get pet insurance or self-fund? The answer depends on your tolerance for risk, your pet’s breed/age, and whether you prefer predictable monthly bills or saving for a ‘just-in-case’ catastrophe. y pet owners; self-funding keeps you in control but can leave you exposed to expensive bills for complex surgeries or cancer care.

Below we break down how pet insurers actually work in Canada, the fine print you must read, and how three common providers compare in 2025.

Pet Insurance Basics: A Simple Guide to Minor Accident Coverage in Canada

We’ll use the example of our customer to explain how pet insurance works if you have rate increases and what the terminology is.

	Beginning of Insurance:	Middle of Insurance (30% increase):	Insurance (23% increase) and covered at 10% of costs:
Yearly Premiums	$1200 premium per year paid by dog owner.	$1560 premium per year paid by dog owner.	$1920 premium per year paid by dog owner.
Example of a Minor Accident/ Illness cost	$3000	$3000	$3000
Co-insurance (% not covered by insurance.)	80% reimbursed for treatment costs. 20% not covered by insurance = You pay $600	80% reimbursed for treatment costs. 20% not covered by insurance = You pay $600	10% reimbursed for treatment costs. 90% not covered by insurance = You pay $2700
Subtotal	$2,400	$2,400	$300
Deductible (The fixed amount you pay yearly in addition to Co-insurance)	You pay additional $200	You pay additional $200	You pay additional $200
Total Reimbursement by Insurance company	$2,200	$2,200	$100
What you pay out of pocket this year (Yearly Premium + Co-insurance + Deductible)	1200+600+200 = $2,000	1560+600+200 = $2,360	1920+2700+200 = $4,870
Better off/ (Worse off) compared to paying for $3000 by yourself	BETTER OFF by $1,000	BETTER OFF by $640	WORSE OFF by $1,870

As long as the treatment costs are high and co-insurance and deductibles are low, maybe pet insurance is a really good idea.

How Premiums & Coverage Change Over Time — What Triggers Rate Hikes?

Despite customers feeling like their premiums were jumping constantly due to their insurance claims, the truth may be a bit nuanced. Premiums can and do rise, but not usually because of your single claim. Insurers may change premiums due to portfolio experience, broader actuarial adjustments—rising vet costs in your region, aging pets, and the insurance pool’s claims history—while complying with insurance regulations. As such, your claim might be contributing to portfolio increases and that may trigger the insurance rate hikes you may be facing.

That said, if you file many claims, you may be moved to different underwriting categories or higher renewal bands. Insurers may also raise rates for pets entering higher-risk age bands.

Key Questions to Ask Before Buying Pet Insurance in Canada

Some people would wonder why pet insurance is more expensive than their monthly BC MSP healthcare. In Canada, healthcare is subsidized by the government out of taxes making it cheaper than private healthcare.

Here are 2 questions to ask yourself before buying pet insurance.

How Much Am I Willing to Spend on Emergency Care for My Dog or Cat?

If you have a budget cap and are able to make difficult decisions during an emergency, then you may go with self-funding for your dog or cat. However, for some pet parents who would spend everything they have, insurance may be a preferable option of limiting your overall financial exposure. Pet insurance is about minimizing your financial risk.

Is My Dog or Cat Likely to be Injured or Require Emergency Healthcare?

This is a harder question to answer. Typically, dogs get into injury situations because they tend to be outdoors or in same cases more rambunctious. Indoor cats do not have the same risk profile as there are less external factors (hopefully) to cause injury. So in those cases, dogs tend to be a better candidate for insurance compared to indoor cats.

However, the answer gets more complicated depending on balancing the following factors:

• Type of pet and breed
• Age of dog/cat, 
• Propensity for illness/ injury e.g. hip dysplasia,
• Cost of the insurance,
• Discipline in depositing funds into a doggy/kitty account regularly, and
• Probability of the insurance company to process claims promptly without denying them/ increasing co-insurance or deductibles after claims.

Finally, we define Pet Insurance as for Pet Accidents/ Illnesses. Note that routine checks and vet’s consultation fees are typically Not covered.

Quick Comparison of 3 of the Best Pet Insurance in Canada

	BCAA Pet Insurance	Trupanion Pet Insurance	Petsecure Pet Insurance
Underwriter	Northbridge Insurance Corporation (via PTZ / BCAA)	Trupanion (United States-based insurer, Canadian policies underwritten by its operating entity) – **no payout limit**.	Petline Insurance Company
Premium & Deductible	$50.79 / month (Intermediate plan), deductible $200 (check policy for your province)	$127.19 / month (popular plan), deductible $200 (varies) *	$63.50 / month (popular plan), deductible $300 *
Reimbursement Rate	~80%	90%	80–90% (depends on plan level)
What’s Covered	Accidents & illness	Accidents & illness	Accidents, illness, diagnostics, surgery, medications, exam fees, some dental illness (plan dependent)
Annual / Incident Limits	Plan limit varies by level; check your policy	No annual, per-incident, or lifetime payout cap (“Unlimited benefit”)	Limit varies by plan; refer to your Schedule of Maximums
Waiting Periods	Varies — confirm in your BCAA policy	Standard waiting periods apply**	48 hr for accidents; 14-day illness; 6 months for dental, cruciate / IVDD.
Pre-Existing / Exclusion Clause	Pre-existing conditions excluded per “clinical signs before coverage” (see policy)	Pre-existing conditions are excluded; see policy for full definition	Pre-existing or “foreseeable” conditions excluded (clinical signs before coverage or in waiting period)
Optional / Alternative Coverage	Alternative therapies: $350/year (varies by plan)	Offers optional benefits depending on plan selected	Alternative therapies covered (e.g. acupuncture, physiotherapy) when prescribed by vet
Common Exclusions or Disadvantages	• Pre-existing conditions exclusion is broad • + Other plan-specific limitations	• Premiums may increase significantly with age or high claim experience (some pet parents report large hikes) • Not all clinics participate in direct-pay (if applicable) • Deductible structure varies	• 6-month waiting period for cruciate, IVDD, dental • Prescription or therapeutic diets *not covered* • Pre-existing condition clause uses “clinical signs” definition
Advantages / Perks	Boarding reimbursement if you’re hospitalized; lost-pet advertising compensation	Unlimited payouts; peace of mind for chronic / serious illness	Preventive plan option; dental illness coverage; alternative therapies; 48-hour accident waiting period
Policy Paper / Sample	BCAA Underwriters & Policy Info	Trupanion No Limit Policy FAQ	Petsecure Policy Wordings

Policy Pitfalls: Pre-Existing Conditions, Breed Exclusions & Warranty Clauses

One of the biggest frustrations for pet parents shopping for insurance in Canada is how unclear policy exclusions can be. Most people sign up expecting peace of mind—then discover during a claim that a condition wasn’t covered after all. Here are the three areas where we see the most misunderstandings:

Pre-Existing Conditions (The #1 Claim Denial)

Every Canadian pet insurance company excludes pre-existing conditions—but the definition varies widely. Some insurers only exclude conditions that were formally diagnosed before enrolment. Others use far broader language, excluding any “clinical signs” noted in vet records, even if there was no diagnosis at the time.

For example:
If your puppy had mild itchiness noted at 4 months, future allergies might be excluded—even if the cause was environmental or temporary.
Limped once? Future knee or hip issues could fall under the umbrella of “pre-existing.”

Important:
Many policies allow insurers to review all medical notes for the 12–18 months before enrolment. Anything written down—“intermittent cough,” “occasional vomiting,” “slight luxating patella”—can be grounds for exclusion later.

This is why starting early, before any health issues appear, is often the only way to maximize coverage.

Breed Exclusions & Genetic Conditions

Some breeds are more predisposed to hereditary issues like hip dysplasia, IVDD, heart disease, or brachycephalic airway syndrome.
Because of this, insurers may:

• Exclude hereditary or congenital conditions entirely
• Exclude certain conditions for specific breeds only
• Increase your deductible as your dog ages
• Raise premiums aggressively after a claim involving a hereditary condition

Commonly affected breeds:
French Bulldogs, English Bulldogs, Dachshunds, German Shepherds, Dobermans, Retrievers, and any brachycephalic breed (Pugs, Boston Terriers, Shih Tzus).

Even when a policy says it “covers hereditary issues,” read the fine print. Many only cover these conditions if no symptoms whatsoever were present before enrollment.

Warranty Clauses (The Hidden Trap You Might Miss)

These clauses require you to meet ongoing health-care obligations—otherwise, your coverage can be denied. Most pet parents have never heard of them, but they’re extremely common.

Warranty clauses usually state that you must:

• Keep vaccinations up to date
• Maintain parasite prevention seasonally
• Follow recommended lab tests (e.g., bloodwork)
• Follow treatment plans exactly as prescribed
• Attend scheduled rechecks

If you skip any of these, your insurer can deny a claim on the grounds that you did not “maintain the health of the pet.” This is one of the most common reasons claims are denied for ear infections, dental issues, tick-borne illness, and GI problems.

A surprising example:
If your dog develops worms or a tick-borne infection, and you skipped preventive medication, many insurers will deny the claim—even for complications that require expensive treatment.

Bottom Line: Read Everything (Even the Boring Parts)

Pet insurance in Canada is helpful for major accidents and life-threatening illnesses—but it isn’t simple.
Before you sign up:

• Request the full policy wording (not just the brochure)
• Review the pre-existing condition clause carefully
• Check whether your breed has additional exclusions
• Look for any warranty requirements you must follow
• Get written clarification from the insurer if something is unclear
• Always check waiting periods: typical accident waiting periods are 48–72 hours and illness waiting periods ~14 days. Pre-existing conditions are excluded — and the definition of pre-existing differs by insurer, so the timing of enrollment can make or break future claims

Pet insurance is valuable—but only if you fully understand what’s excluded before you need to make a claim.

Comprehensive Review of the 4 Top Pet Insurance Plans in Canada

We decided to compare four of the top pet insurance companies and choose the “most popular/ regular” plan to give you an idea of what they cost and cover:

• Dog: Cleo (actually a cat’s name),
• Type: Staffordshire Bull Terrier (she eats like one at least)
• Age: 4 years (she thinks she’s a spring chicken)

Here are the comparables including exclusion info. We put the CONS first because most of what we’d want covered are more important than ‘nice’ little riders we don’t necessarily need. Note that most of the information for insurance is in their policy wording yet not everyone reads them before signing up. We tried to accurately capture them below based on our read:

	BCAA Pet Insurance	Trupanion Pet Insurance	Petsecure Pet Insurance
Premiums and deductible	$50.79 monthly on the Intermediate Plan Deductible based on dog’s age = $200.	$127.19 monthly on the most popular Plan. Deductible is $200.	$63.50 monthly on the most popular Plan.Deductible is $300.
Coverage by insurance	80% coverage	90% coverage excluding examination fees and taxes.
What’s covered	Accidents, illnesses	Accidents, illnesses	“ Hospitalization, Dental care (dental treatments and cleanings), Surgery, Diagnostics, Medication, Exam fees, Taxes”
Accident Coverage	Up to $2,500 accident and illness coverage combined annually! Limit renews each year	90% of expenses, No limit.Since no sales taxes are covered, it may work out to about 80% of expenses.	Up to $2,500 per accident
Illness Coverage			Up to $2,500 per illness, per year
Alternative therapy coverage	$350 per year	Additional alternative therapy costs $16.47 premium per month.	$350 per year
Disadvantages of the Pet Insurance Plans	·       The Annual Limit is very small and may not be sufficient for common injuries e.g. a back injury, torn ligaments (CCL) may cost over $5,000 including tests	·       High Monthly premium price	·       The Limit per accident or illness may not be sufficient for common injuries e.g. a back injury, torn ligaments (CCL) may cost over $5,000 including tests
	·       Pre-existing conditions are excluded and are vague enough to include anything that with or without a confirmed diagnosis shows for your pet e.g. if your pet is itching a bit at 4 months for any reason and that is included in the vet’s notes, your pet may be excluded for allergies if that develops in the future. Cancer may fall under these conditions.	·       Pre-existing conditions are excluded where there are signs or evidence of their potential manifestation existed within the 18 months prior to the Policy Enrollment Date and even if there are no medical records about potential signs incl. CCL, see policy sample Section 9 IV for more examples.	·       Pre-existing conditions are excluded and are vague enough to include anything that with or without a confirmed diagnosis shows for your pet e.g. if your pet is itching a bit at 4 months for any reason and that is included in the vet’s notes, your pet may be excluded for allergies if that develops in the future. Cancer may fall under these conditions.
	·       Excludes expenses for cats showing clinical signs of FIP, FIV or FELV prior to the policy inception or during the waiting period	·       N/A	·       Excludes expenses for cats showing signs of FIP, FIV or FELV prior to the policy inception or during the waiting period
	·       Deductible rises as pet ages (which defeats the purpose of most of us getting insurance) i.e. for a dogo   Up to 5 years is $100 annual, o   5- 7 years is $200 annual, o   7-10 years is $400 annual and o   over 10 years is $500 annual	·       Not stated clearly in their documents but from personal experience as well as others we know using Trupanion, we’ve had rates and deductibles “coincidentally” change when claims increased	·       Deductible rises as pet ages (which defeats the purpose of most of us getting insurance) i.e. for a dogo   Up to 5 years is $100 annual, o   5-10 years is $300 annual o   and over 10 years is $500 annual
	·       Not stated clearly in their initial quotes but they can increase your co-insurance by 10% increments to a maximum of 50% if your pet falls into “risk management” category, which is a pet with ongoing claims.	·       N/A	·       Not stated clearly in their initial quotes but they can increase your co-insurance by 10% increments to a maximum of 50% if your pet falls into “risk management” category, which is a pet with ongoing claims.
	·       Don’t cover dental expenses under this plan	·	·       N/A
	·       Any change in your coverage means you have to state any pre-existing medical conditions as of your new policy – meaning if your pet developed a condition recently, it would not be covered under the new plan although it was under the old plan.	·       N/A	·       Any change in your coverage means you have to state any pre-existing medical conditions as of your new policy – meaning if your pet developed a condition recently, it would not be covered under the new plan although it was under the old plan.
Advantages of Pet Insurance Plans	·       They pay for lost pet advertising (up to $250)·       If you are hospitalized for at least two days, they may pay for boarding for your dog. ($25 per day up to $500) ·       If you have to cancel or cut a holiday short because your pet suffered an “Accident or illness” they will pay for any travel and accommodation expense you can’t recover (up to $500)	·       Cover congenital & hereditary conditions as long as they were not pre-existing before coverage started (Remember, as per their policy it states that the conditions cannot exist 18 months prior to the Policy Enrollment Date.)·       Hip dysplasia coverage is included in Trupanion’s core policy. ·       Cover hospital stays, while herbal treatment is at an additional monthly premium to the pet owner ·       Cover dental illnesses & injuries ·       Clear that your dog’s age, breed, gender, spay/neuter status and vet costs can change cost of insurance ·       Can pay your veterinarian directly so you don’t have to pay out of pocket. ·       Pretty quick turnaround on claims in our experience.	·       They pay for lost pet advertising (up to $1000 per accident)·       If you are hospitalized, they may pay for boarding for your dog. (up to $1000 per accident) ·       If you have to cancel or cut a holiday short because your pet suffered an “Accident or illness” they will pay for any travel and accommodation expense (up to $1000 per accident) ·       Cover the cost of any Treatment for the teeth and gums for preventive care or as a result of an eligible dental Illness ($300 per year)
More info- Policy papers and sample	http://www.caapets.com/pdf/pw_caa.pdf	http://trupanion.com/canada/-/media/files/trupanion/pdfs/trupanion-sample-policy-2016.pdf?la=en-CA	http://www.petsecure.com/pdf/PW_PS.pdf
Ratings from petinsurancereview.comNote that they make money by having people get quotes through their website. (trust the reviews with a grain of salt)	N/A	Customer Ratings 60 days 1 year Lifetime Rating 9.0 9.4 9.2 Count 31 792 4398 http://www.petinsurancereview.com/vetinsurance.asp	Customer Ratings 60 days 1 year Lifetime Rating 1.0 3.4 5.9 Count 1 16 115
JUST IN CASE you are tempted by their Basic Plan because of the lower premiums, here are the Main Cons that you should consider-	Basic plan called COMPACT PLAN·       It won’t cover illnesses developed by drinking contaminated/ stagnant water, which is a common accident that most dogs get into ·       They don’t state clearly upfront in your quote that joint/arthritis issues are not covered ·       They also do not cover soft tissue or muscle inflammation ·       Do not cover any consequential damage as a result of any accident e.g. if your pet develops liver damage due to poisoning, future treatments of that liver damage will not be covered. ·       Vague on not paying for accidents due to your pet’s known behavioural problem.

Our Experience: Did We Keep Pet Insurance? (Real-world example)

We had pet insurance for Shinji but we did consider the option of banking that cash into an account for Shinji. Consequently, we used his bank account for his food, travel/daycare, and supplies.

Quick Checklist: How to Choose the Right Policy for Your Pet

Choosing pet insurance in Canada shouldn’t feel like decoding a legal document. Here’s a simple checklist to help you compare plans confidently and avoid common traps that cost pet parents thousands later.

1. Start With the Real Coverage Limit

• Look for accident + illness limits of at least $5,000 per year
• Avoid plans with $2,500 caps, which rarely cover common injuries like CCL tears or back issues
• Check whether limits reset annually or per incident

2. Confirm What Counts as a Pre-Existing Condition

Before you enroll, ask the insurer directly:

• “Would this (itchiness, coughing, limping, anxiety, etc.) be considered pre-existing?”
• “What medical notes from the last 18 months are reviewed?”
• “Can I get pre-existing condition determinations in writing?”

If the answer is vague — assume it’s excluded.

3. Understand the Co-Insurance & Deductible Math

The deductible and the percentage you pay out of pocket matter more than the premium:

• Lower deductible = higher premium
• Higher deductible = lower premium
• Co-insurance changes (80% vs 90%) drastically affect real payouts

Run the math on a $3,000 bill — you’ll quickly see how different plans compare.

4. Check Mandatory “Warranty” Requirements

Most people skip this. Don’t.
You may need to:

• Stay up to date on vaccines
• Use parasite prevention
• Follow all recommended tests and rechecks
• Follow treatment plans exactly

Missing any of these can void your claim.

5. Look for Breed-Specific Exclusions

If you have a:
Frenchie, Bulldog, Dachshund, Shepherd, Labrador, Golden, Pug, Boston, Shih Tzu, or any brachycephalic breed — read the fine print twice.
Many hereditary conditions may be excluded or only partially covered.

6. Review Dental Coverage Carefully

Dental claims are one of the most commonly denied.
Check for:

• Dental illness coverage (not just accidents)
• Annual caps
• Requirements for dental cleanings

A lot of “comprehensive” plans still exclude routine dental care.

7. Ask About Premium Increases After Claims

Even though insurers say there’s “no causation,” premiums often rise:

• After filing frequent claims
• As your dog ages
• For breeds with higher risk
• When vet costs increase in your area

Ask what factors influence your annual premium — and whether deductibles can also increase.

8. Make Sure They Pay Your Vet Directly

Not all insurers offer direct-to-vet payment.
If cash flow is a concern, choose a company that handles the invoice upfront so you’re not waiting weeks for reimbursement.

9. Compare Real Customer Reviews (Not Just the Company Website)

Read reviews specifically about:

• Claims being denied
• Slow processing
• Premium hikes
• How the insurer handles chronic conditions

Third-party sites help, but take overly positive reviews with caution.

10. Enroll Early — Before Any Symptoms Appear

This is the easiest way to avoid pre-existing exclusions.
Waiting until after your pet gets sick almost always results in limited coverage.

Canada Pet Insurance FAQ — Fast Answers

References & Policy PDFs

• Trupanion Canada overview & sample policy pdf.
• Petsecure overview and sample policy pdf.
• BCAA underwriters page (PetPlus Us)