It also includes dental cover of up to £3,000 for both cats and dogs.
Neal Devine, Sainsbury's pet insurance manager, stated that it is "now more important than ever" for cat and dog owners to have the cover.
He explained: "As a result of the current economic climate we estimate that as many as one million pets could see their cover cut back or taken away as their owners look to reduce their insurance bills.
"We now offer two levels of cover for two different prices, so whatever their budget we hope that more cat and dog owners will look to ensure that their pets are protected by quality insurance."
Chris Price, head of pet insurance for Churchill, recently warned consumers that such insurance is generally cheaper when animals are younger.
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