3 Types of Pet Insurance Policy

pet insurance policy

Pet insurance is a safety net in case your animal suffers an illness or accident. With good pet insurance discount, you don’t have to bear the entire cost of veterinary care and you’ll be able to get peace of mind. Surprisingly, even though the pet insurance market is expected to surpass $10.2 billion by 2025, countries like Canada register a small percentage of pet owners that have obtained pet insurance plans.

However, pet insurance is a must-have and should be a top priority for anyone with a furry friend, especially when it comes to keeping the pet healthy and happy.

It’s a type of medical insurance that an owner pays for their pet on a monthly or annual basis, covering veterinary expenses and protecting them against any potential complications. The owner must pay the vet in full if a pet is diagnosed with a condition covered by their insurance policy. After that, they submit a claim to the company for reimbursement. The details of the pet’s coverage will determine how much they get reimbursed for the total vet bill. 

All pets have different needs, which is why we will look at the variety of pet insurance policies available for your four-legged friend.

Lifetime Insurance

Lifetime pet insurance is the costliest but most comprehensive coverage you can get for your dog or cat. Your policy will last its entire life as long as you renew your premiums each year. The insurer will need to continue covering you regardless of the pet’s age or existing conditions.

As your pet grows older, the premiums are most likely to rise in the amount. To better understand this type of pet insurance, you should go over the details with a broker or pet insurance provider in your area. For example, if you have a pet and happen to reside in Canada pet insurance is a must as it will ease the claims process, and help you provide the best care for your pet. Finding a reputable broker is key to getting the best bang for your buck.

Accident-Only Pet Insurance

Accident-only coverage provides a fixed amount per injury for your cat or dog that has been in an accident. Although some policies may cover emergency treatment of an illness due to injury, it is very rare.

The coverage usually has a time and/or financial limit. You must renew your pet coverage within the policy period and ensure that your payments are regular. This is the simplest type of pet insurance and often the most affordable one.

You will be able to claim up to the amount on your pet insurance policy and this will allow you to see exactly how much your pet is covered for a particular injury. Accident-only policies tend to be a lot cheaper than other types of insurance policies and they are most suited for healthy, young pets.  

One of the main disadvantages of this policy is that your pet won’t be covered for injuries if they exceed a certain amount. If your pet becomes ill or requires treatment at a vet, it will not be covered. You would have to pay the bill. The policy terms are usually for 12 months and therefore, an ongoing treatment that is longer than this may not be covered. As with most pet insurance policies pre-existing conditions are not covered.

Condition-Based Policy

Condition-based policies cover illnesses, injuries, and accidents, and they’re more comprehensive than accident policies. They do come with a significant caveat in that once you’ve filed a claim for a condition you can only claim up to the limit you choose or for a specific time period.

After that, your claim will be closed and the condition will be exempted. You won’t be able to make a claim for it again or make a claim for this condition with another insurer. Two types of condition-based insurance policies are available—maximum benefit and time-covered.  

Maximum Benefit

Maximum benefit pet insurance protects your furry companion for every injury or illness, up to a specific pre-set limit. You can file a claim for your pet’s long-term condition, or ongoing treatment for injuries, as long as the maximum benefit is not exhausted. After this point, you will no longer be eligible to claim for the illness or injury.

Maximum benefit doesn’t necessarily mean all-encompassing. For example, if your pet has hurt its leg, you won’t be covered if your pet develops the same condition elsewhere, like the other leg. Most insurers consider this the same condition and won’t cover you.


To claim for a condition, you have to wait a certain period, which is usually 12 months. The condition will be excluded from coverage once the time limit has been met.

Final Thoughts

Taking proper care of your furry friend means taking the time to ensure their health is taken care of. This also means that you should provide necessary vet visits and the right medical treatments.

By knowing the different types of pet insurance policies, you’ll be able to cover expenses related to accidents, illness, congenital and hereditary conditions, and general health.

Gretchen Walker
Gretchen is a homemaker by day and writer by night. She takes a keen interest in life as it unfolds around her and spends her free time observing people go about their everyday affairs.