We’ll walk you through the current landscape of pet insurance and discuss current premium costs to help you decide if purchasing a policy makes sense for your pet and your wallet.
Watch: Is pet insurance worth it?
What pet insurance covers (and what it doesn’t)
Pet insurance is similar to health insurance, but it’s for your pet. Just like with a health insurance policy, you’ll pay a monthly fee, called a premium, to keep the policy active so your furry friend is covered.
An accident-only policy covers accident-related injuries, such as those from a motor vehicle accident, a torn ligament, food poisoning, and ingested foreign objects.
An accident and illness policy covers the accidents listed above, plus other types of emergencies, such as broken bones, surgery, hospitalization, prescription medications, digestive issues, infections, and illnesses.
If your pet needs medical care, you’ll take them to the vet as usual. As long as the reason for the visit is covered by your insurance policy, you’ll pay only your deductible and any co-pay, and the insurance provider will cover the rest (or pay up to the coverage limit).
Some conditions may be excluded—pet insurance doesn’t usually cover pre-existing conditions, older pets, specific breeds, or alternative methods of treatment. It also doesn’t typically cover preventative care and dental work unless you purchase a wellness add-on.
Pros and cons of pet insurance
Before making any decision that will impact your finances, it’s wise to consider the benefits and drawbacks.
How much does pet insurance cost?
Several factors determine how much you could pay each month for pet insurance, including your pet’s breed, location, age, and medical history. Plus, there are factors you can control, such as the deductible, annual limit on coverage, and what percentage of costs your insurer reimburses.
Keep in mind that as your pet ages, the cost of caring for and insuring it increases. Some insurance companies even set a maximum age limit on coverage, so enrolling your pet while it’s young and healthy could unlock more affordable rates.
$22.46 for dogs and $18.47 for cats for an accident-only policy
$89.18 for dogs and $45.86 for cats for an accident and illness policy
The more coverage and benefits you get, the higher the price tag. For this reason, it’s important to consider the pros and cons to decide whether purchasing insurance is worthwhile for you.
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Why is pet insurance getting more expensive?
The cost of pet insurance has risen steadily over the past decade or so. The average annual increase for accident and illness insurance was 6.5% for dog owners and 15.24% for cat owners.
Inflation, increased wages of veterinary staff, and higher medical costs have all contributed to the rise in pet insurance premiums since the pandemic; however, higher costs are also tied to advancements in the medical care that pets receive. Vet clinics are increasingly able to treat life-threatening conditions like cancer and other diseases, but it can be expensive.
Before deciding whether or not to get insurance, pet owners must weigh the possibility of paying thousands of dollars out-of-pocket for medical procedures vs. paying ongoing monthly premiums.
How to keep pet insurance costs down
There are several strategies you can use to keep pet insurance costs low:
Shop around and compare policies. Insurers each have unique offerings and calculate premiums differently. Get multiple quotes to find the most affordable rate, but be sure you’re comparing similar coverages.
Choose a higher deductible. The higher your deductible, the lower your premium will be. That said, be sure you choose a deductible amount that you can afford to pay at a moment’s notice if your pet requires urgent care.
Choose a lower annual limit. This is the maximum amount of money your pet insurance company will pay out to you every year. Once you’ve reached that threshold, you’ll be on the hook for any additional veterinary costs.
Ask about discounts. If you have multiple pets, it’s worth asking if you can get a discount from your provider for insuring them both (or all). Typically, you have to enroll each pet and pay separate premiums.
Many credit cards now offer mobile device insurance, and it’s easy to see why. Smartphones aren’t cheap, so having his type of insurance is a valuable perk that can save you a lot of money. Let’s break down how mobile device insurance works and look at the best credit cards in Canada that offer this credit card benefit.
What is mobile device insurance?
Credit card mobile device insurance typically includes $1,000 in coverage for a damaged or stolen phone, as long as you purchased the device or pay for the monthly contract using the credit card. The insurance covers only the phone itself—it doesn’t cover the battery or any accessories, such as headphones or a protective case. Pre-owned or refurbished phones are not covered, even if you use the credit card to make the purchase.
How credit card mobile device insurance works
As with any insurance policy in Canada, there are a few details to watch for when it comes to mobile device insurance.
Coverage period: When you buy a new mobile device on your credit card, the insurance doesn’t usually begin immediately. There’s often a delay of one to three months before it begins. Additionally, the coverage isn’t forever—typically, coverage applies for a maximum of two years from the purchase date.
Coverage limit: Mobile device insurance is usually capped at $1,000, meaning that any money you spend above that threshold will not be covered should something happen to your device.
Deductible: Like other insurance policies, mobile device coverage usually comes with a deductible—the amount you pay before receiving any insurance benefits. Some policies calculate the deductible based on the purchase price of the device, while others account for the purchase price and depreciation.
Depreciation: Mobile device insurance takes depreciation into account when determining the value of your phone. In simple terms: The longer you own the device, the less it’s worth. A standard rate of depreciation is 2% per month, meaning that in a year, your phone will have lost 24% of its value.
Lost or stolen devices: If you make a claim for a missing device, you have 48 hours to notify your provider and stop your wireless service. The insurance doesn’t cover devices stolen from checked luggage or baggage not in your possession.
Claim limits: You’re entitled to make one claim per year. In the case of some credit card companies, this limit applies across all cards.
Although there are some limitations with credit card mobile device coverage, it’s an attractive perk, because it doesn’t cost you anything extra and applies automatically.
The best credit cards with mobile device insurance
Here are some of the best credit cards in Canada that come with mobile device insurance.
RBC Avion Visa Infinite
At a glance: With the RBC Avion Visa Infinite, a generous $1,500 in mobile device coverage is complemented by several types of travel and car rental insurance for a must-have in travellers’ wallets. Plus, you can use Avion points to purchase your mobile device and it will still be insured.
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RBC Avion Visa Infinite
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Annual fee: $120
Welcome offer:Earn up to 55,000 Avion points ($1,100 value)
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Card details
Interest rates
20.99% on purchases, 22.99% on cash advances and on balance transfers (21.99% for Quebec residents)
Income required
$60,000 per year
Credit score
None specified
Point value
1 RBC Avion point = Up to $0.023 when redeemed for travel using RBC’s Air Travel Redemption Schedule.
Scotiabank Momentum Visa Infinite
At a glance: The Scotiabank Momentum Visa Infinite includes $1,000 of mobile device coverage that is activated just 30 days from the time of purchase of the phone. When you consider the seven other types of insurance, and the ability to earn cash back, this card is worth your consideration.
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Scotiabank Momentum Visa Infinite
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Annual fee: $120
Welcome offer:earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on additional cards. Offer ends October 31, 2024.
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Card details
Interest rates
20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers
Income required
Personal income of $60,000 or household income of $100,000
Credit score
725 or higher
American Express Cobalt
At a glance: With a standard $1,000 in mobile device insurance, plus the ability to earn points and Amex membership benefits, the American Express Cobalt card has a solid offering.
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American Express Cobalt
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Annual fee: $156
Welcome offer:earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.
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Card details
Interest rates
21.99% on purchases, 21.99% on cash advances
Income required
None specified
Credit score
725 or higher
Point value
1 Amex Membership Rewards point = $0.01 when redeemed with the Flexible Points Travel Program, $0.015 on average with the Fixed Points Travel Program, and up to $0.02 with airline points transfers.
Tangerine World Mastercard
At a glance: For a no-annual-fee card, the Tangerine World Mastercard’s standard $1,000 new mobile device coverage policy is one of several nice add-ons, including rental car collision and loss coverage and free Wi-Fi through Boingo Wi-Fi for Mastercard.
Tangerine World Mastercard
Visit tangerine.ca for more details
Annual fee: $0
Welcome offer:earn an extra 10% back on up to $1,000 in everyday purchases within the first 2 months. Must apply by October 31, 2024.
Visit tangerine.ca for more details
Card details
Interest rates
20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers
Income required
$60,000 per year
Credit score
725 or higher
CIBC Aventura Visa Infinite
At a glance: When you pay for your new mobile device with the CIBC Aventura Visa Infinite, you’ll have up to $1,000 in insurance protection for loss, theft and damage. This policy has more relaxed time requirements for reporting but the paperwork required to make a claim is rather onerous.
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CIBC Aventura Visa Infinite
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Annual fee: $139
Welcome offer: You can earn up to $1,400 in value including a first year annual fee rebate.
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Card details
Interest rates
20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers
Income required
Personal income of $60,000 or household income of $100,000
Credit score
760 or higher
Point value
1 point= $0.01 on average.
What if your credit card doesn’t have mobile device insurance?
Not all is lost. You do have a few options.
Insurance from the dealer or manufacturer
If you don’t get mobile device insurance through your credit card, you can still get coverage, but it might cost you a few hundred dollars.
Google Preferred Care is a two-year insurance package that covers accidental damage and loss. The cost depends on the model of your device, and there’s a service fee associated with making a claim, which is also model-dependent. You can enroll for up to 30 days after purchase and you can make two claims per 12-month period.
AppleCare, for Apple phones and other devices, extends hardware, software and technical support past the first 90 days included with your mobile purchase. The cost to insure your iPhone depends on the model, but it starts at $99 for two-year protection of an iPhone SE. Two years’ worth of coverage for an iPhone 15 is $269. There’s a service fee for each claim: $39 for screen or back glass damage, and $129 for other accidental damage, plus applicable taxes.
You may also be able to purchase protection directly from the store. Best Buy, a big box retailer, offers Canadians protection plans. The replacement plan is for defective phones. Once you send in your phone, you’ll receive a Best Buy gift card for the purchase price amount. You can replace or repair your cell phone up to two times.
Insurance from the cell phone provider
You may also have the option to buy mobile device protection from your cell phone provider.
Rogers offers device protection plans for Apple and Android products that include loss or damage coverage, starting at $7.99 per month. The device protection plan for iPhone users features Apple Care services, which includes unlimited service requests and one device replacement for loss or theft. Android users get up to three service requests per 12 month period and one device replacement. One of the benefits of insuring your device this way is the speed of service: repairs can often be done on the same day, and replacements can often be received the next day.
Similar to Rogers, Telus partners with Apple to give the Apple Care iPhone protection plan to clients, with coverage starting at $9 per month. For $15 per month, Android users can buy Device Care Complete, which includes unlimited repairs for cracked screens and liquid damage, as well as free battery replacements. Repairs through Apple Care are handled by Apple, while phones protected by Device Car Complete have to be repaired at a Mobile Klinik location.
Alberta premiums have gone up specifically due to soaring legal fees and other costs associated with lawsuits following accidents, which is not the case in other provinces. That’s thanks to a culture of litigation in the province, which isn’t as present in the rest of Canada.
Over the last 10 years, the average size of accident benefit claims increased by 147% in Alberta, compared with 53% or less in other provinces. Put plainly, claims are higher in Alberta than elsewhere in Canada, due to bodily injury claims and escalating legal costs in Alberta.
Huge auto-insurance legal costs are to blame as well. These costs have gone up in the province by 38% since 2018 and account for about 20% of the premiums drivers pay for mandatory auto insurance coverage in Alberta.
“This is equivalent to nearly $200 for each policy annually,” the IBC has stated in a recent report.
Another contributing factor, according to MNP, is the increasing cost and length of car repairs. A Toyota RAV4 bumper costs $4,144 to replace today, up 50% from $2,769 in 2017. Also, 24% of auto sales in Alberta are of trucks, which is higher than the national average of 18.1%.
Supply chain issues have slowed down auto parts replacement, as any car owner who’s had to cool their heels for a part to arrive at their mechanic can attest to. This waiting has had a knock-on effect of making car rental lengths longer in Alberta as well.
TOYOTA RAV4 model year
Cost of repair
Total increase of repairs
2017
17 parts total cost of repair: $2,769
n/a
2022
39 parts total cost to repair: $4,144
50% increase from 2017 (newer vehicles have complex technology and more parts to repair)
