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Tag: pet costs

  • What is pet insurance—and do you need it? – MoneySense

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    As pet insurance becomes more common and available, you’ll have better opportunities to select the coverage your pet needs at a price you can afford. Before we get into the costs, let’s step back and see just what pet insurance is and what it covers so you can decide if your pet needs a policy in the first place.

    What is pet insurance?

    Pet insurance is a type of insurance policy that you purchase from an insurer that offers this specialized form of coverage. 

    You’ll pay a monthly fee, called a premium, to keep your policy active (and your pet covered). If you need to take your pet to the vet for a covered issue (like an accident or illness), you pay the deductible and the insurance company kicks in to reimburse you for the remainder of the bill.

    Think of pet insurance as a way to protect your finances from an unexpected medical expense for your dog or cat, which can run in the thousands.

    What does pet insurance cover?

    Just like health insurance for humans, pet insurance offers financial assistance for medical conditions and treatments that your furry friend might need. Although coverage varies, pet insurance usually pays for:

    • Emergency medical care
    • X-rays
    • Surgeries
    • Accidents or illnesses
    • Emergency dental work (e.g., from an accident)
    • Diagnostics and medication

    What does it not cover?

    As with any type of insurance, there are often exclusions. The most common ones include:

    • Wellness check-ups
    • Routine dental work
    • Vaccinations

    Some insurers do not cover specific dog breeds or pets when they reach a certain age. Your pet’s pre-existing conditions may also be excluded, such as an existing injury or allergies.

    Since it’s up to each insurance company to determine what they do and don’t cover, carefully read each insurer’s guidelines before you sign up for a policy.

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    Pro Tip: You may have the option to purchase add-ons that expand your coverage, such as a wellness add-on to cover routine or preventative care. This will increase the cost of your insurance, so do some calculations to ensure the benefits are worth the added expense.

    How pet insurance works

    Once your pet has a pet insurance policy, you can use it to access medical care. Depending on your plan, coverage may or may not include annual wellness exams or routine vaccinations—but most include emergency care.

    For covered conditions, you typically take your pet to the vet, pay for the care, and then submit a claim to your insurance company—either online or by phone. If your claim is approved, you’ll pay your deductible and be reimbursed for the remainder of the eligible expenses. 

    Note: Some insurers automatically subtract the deductible from your reimbursement, so it’s a good idea to check with your provider to understand how claims are paid.

    How much does pet insurance cost?

    Like any insurance product, the price you pay is based on individual factors like:

    • Breed
    • Age
    • Medical history
    • Location
    • Deductible amount
    • Coverage options

    Generally, you can expect to pay around $45–$120 per month for a dog or $25–$60 per month for a cat with an accident and illness policy. Remember that your costs may vary depending on your pet and the coverage you select.

    Keep in mind that the price of pet insurance may change as more insurance providers emerge in Canada and AI innovations could streamline the underwriting process. 

    To find out how much pet insurance would cost in your specific situation, request quotes from several insurance companies. Try to use the same coverage types and amounts so it’s easier to do an even comparison of the policies, and don’t forget to ask about potential discounts!

    Do you need pet insurance?

    Now that you know the ins and outs of pet insurance, you may be wondering if it’s worth it to purchase coverage. To help you decide, consider the costs of average vet bills. For instance, an emergency vet visit costs between $800 and $2,500, on average, in Canada. However, fewer than half of pet owners could handle even a $1,000 emergency bill without financial difficulty.

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    Jessica Gibson

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  • Why are vets so expensive? – MoneySense

    Why are vets so expensive? – MoneySense

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    The joys of these animal companions, however, don’t come cheap: pet care costs have increased 6% to 8% annually over the past few years. On average, dog owners spend between $965 and $4,020 per year on their pup, while cat owners have it a little easier, at between $930 and $2,400 per year, according to pet-sitting app Rover. Between vaccinations, spaying/neutering, routine check-ups, and illness or emergencies, the costs of vet visits can start to rival your mortgage payments.

    While inflation has had an impact on pet-care costs—as it has on virtually everything else we pay for in life—it’s not the only factor at play. The landscape of veterinary care has changed in recent years, largely thanks to staff shortages, the involvement of big corporations—in recent years, many independent clinics have sold to private equity firms—and increasingly sophisticated equipment and treatments. Here’s why you’re paying through the nose to keep your beloved four-legged friend healthy—and how you can reduce those costs a little.

    Why is veterinary care so expensive?

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    There’s a lot that goes into animal health care. If your pet has been injured or simply isn’t feeling well—they’re uncharacteristically lethargic, say, or not interested in food—a battery of tests may be required to pinpoint the issue and determine care. X-ray and ultrasound machines, lab equipment and other vet tools have become more advanced in recent years, and as clinics invest into them, they have to charge more to recoup those costs. 

    Treatments can be pricey as well. Thanks to our publicly funded health care system, Canadians aren’t used to being confronted with the costs of medical care, so a several-thousand-dollar bill for chemo or surgery for your golden retriever can be a shock. But treatments for animal illnesses are often the same or very similar to human ones, so the costs are similar, too. Supply chain disruptions, coupled with a limited number of drug distributors, have led to higher medication prices as well.

    And, like everyone else in the country, vets have seen their expenses rise due to inflation. Rents are higher, as are interest rates on loans, property taxes, insurance, utilities and maintenance fees. Vet businesses are feeling the pinch just like the rest of us, and they need to cover their basic running costs.

    Another issue is staff shortages. There were barely enough veterinarians and veterinary technicians to go around pre-2020. Then, during COVID-19 lockdowns, pet ownership shot up, leaving many clinics struggling to cope with patient demand. There’s hot competition for potential staff, and one way to lure new talent is by offering higher compensation—that cost often gets passed on to pet parents. Let’s not forget there are clinic support workers who keep everything going, such as receptionists and cleaners; they need fair compensation, too.

    One of the biggest factors in the increase in vet bills is that many clinics have been bought up by large corporations over the past few years at surprisingly high prices—sometimes as much as 30 times the clinic’s annual sales. These corporations tend to be more driven by profit than independent clinics and often pressure vets to increase billing or rates so they can plump up their investment. As well, with the high interest rates of the past two years, their new acquisitions have been costing them more than they anticipated, adding even more impetus to raise fees.

    Watch: Is pet insurance worth it?

    How can you save money on vet care?

    “An ounce of prevention,” well, you know the rest. It’s easy to just not worry about your pet’s health if they seem fine and happy, but being proactive now could save you a hefty bill down the road. Ensuring they eat healthy, get plenty of exercise and all the necessary shots and routine check-ups could help you prevent illness—or catch it at an early stage—and avoid potentially expensive treatments. 

    Be sure to shop around animal clinics before settling on where to take your pet. Rates can vary significantly, so it’s worth calling several spots to compare prices. Such differences aren’t necessarily random—the fees might include different things, such as bloodwork and pain medication, and some clinics have newer or better equipment or just pay higher rent. There are also lower-cost spay/neuter and vaccination facilities that offer a more basic (but still safe and adequate) service.

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    Ciara Rickard

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