What is a deductible for pet insurance?

How do pet insurance deductibles work?

A pet insurance deductible is the amount you pay for veterinary expenses before your pet insurance starts paying for covered care. The lower your deductible, the less you'll have to pay out of pocket per claim, but you'll also pay a higher insurance premium. Depending on your insurer, you may have either an annual deductible that you pay once a year or a per-incident deductible that you pay with each claim. In either case, the deductible is usually applied after factoring in your plan's reimbursement percentage.

For example, if you have a vet bill of $500, a reimbursement percentage of 80%, and a deductible of $200, you'd expect to pay a total of $300 while your insurance covers the remaining $200.

$500 (Vet bill) x .8 (80% Reimbursement level) = $400

$400 - $200 (Your deductible) = $200 Total reimbursement

Your total out-of-pocket expenses = $300

Deductible amounts can range anywhere from $0 to $1,000, depending on the insurer. The most common amounts are usually $100, $250, or $500, according to PetMD.

Types of pet insurance deductibles

There are two different types of pet insurance deductibles that can affect how much you pay out of pocket for covered care.

Annual deductible

An annual pet insurance deductible is a deductible that you only need to pay once a year. If you have one claim that meets your deductible, you won't have to pay it for any subsequent claims until your policy renews. With an annual pet insurance deductible, you end up paying less out of pocket if you have multiple claims over the course of a year because you only need to meet it once. Note that your plan likely includes an annual limit too — the maximum amount your insurer will pay out for covered care after meeting your annual deductible.

Per-incident or per-condition deductible

A per-incident, or per-condition deductible, applies every time you file a claim with your pet insurance. For example, your dog needs surgery to remove a cyst, which costs $2,000, and you pay your deductible of $500 after filing a claim for that surgery. A month later, your dog needs treatment for kennel cough, which costs $600. You would pay your $500 deductible again since this claim is for a different incident/condition. Pet insurance policies with a per-incident deductible include an annual limit as well.

What is a pet insurance annual limit?

Your pet insurance policy's annual limit is the maximum amount your insurer will pay for covered expenses within a 12-month period after you've met your annual deductible. If your covered expenses exceed your annual limit, you'll pay the remainder of your vet bills out of pocket.

How to choose a pet insurance deductible

As with any insurance coverage that includes a deductible, your choice will depend on your budget and how much risk is acceptable to you. If you're looking for a lower insurance premium that fits inside your budget, then a higher deductible may work for you. But if you would struggle to afford a high deductible on short notice, such as $750 or $1,000, then a lower deductible may make more sense for you. Just keep in mind that the lower your deductible, the higher your insurance premium will be.

What kind of care doesn't apply toward my annual deductible?

Only costs that would otherwise be covered under the specific policy would be applied to the annual deductible. For example, many plans won't count certain uncovered costs toward the deductible, such as vaccines, wellness visits, routine care, pre-existing conditions, elective procedures, and others. Check with your insurer about these specific situations.

Can I change my pet insurance deductible?

After you purchase a policy, there may be a limit as to how often you can change your deductible. Some insurers may allow you to adjust your deductible soon after your policy is issued or renewed. There may also be restrictions on deductible changes depending on whether you've filed a claim before, i.e. you may only be able to raise your deductible instead of lowering it.