What is a pet insurance deductible and how does it work?

Understanding your pet insurance deductible is an important part of being a pet parent, especially if you want to save on their healthcare costs. The cost of routine care and emergency vet visits can quickly add up. A two-day hospitalization averages up to $1,700 for large dogs while emergency surgery can go as high as $3,000 for small and medium dogs to $5,000 for large dogs, on average. A 2023 survey by pet-sitting and pet-walking service Rover revealed that respondents spent between $160 and $1,290 on emergency vet bills. Pet insurance policies can help cover these costs, and your deductible impacts how much of those fees you’re responsible for.

Average monthly premium for dogs

$41.58

Average monthly premium for cats

$24.88

Accident waiting period

3 days

On Petted.com’s Website

Learn how this type of financial protection works, whether or not you can find pet insurance with no deductible, and how to choose the best pet insurance for your furry friend. That way you can make confident financial decisions at every stage of your pet’s life.

What is a pet insurance deductible?

Your pet insurance policy’s deductible is the amount of money you must pay before the insurance company starts covering costs.

Most insurers require you to pay the medical bills upfront and get reimbursed for your covered amount after successfully filing a claim. Some insurers pay the vet directly, but they’re not as common. Plus, you usually need to work with a vet who partners with that pet insurance company.

If you’re worried about having to cover your pet’s entire medical bills upfront, however, it may be worth exploring direct-pay insurers. Just know that your care options may be limited.

How do pet insurance deductibles work?

Let’s say you have an annual deductible of $500. Your dog starts having digestive issues so you take him to see the vet. The total bill comes to $800, thanks to x-rays, bloodwork and consultation fees.

In most cases, you have to pay the vet the entire bill upfront. Then you file a claim with your pet insurance company to make sure the medical event is covered. If approved, the insurer would require you to pay $500 to meet your deductible, then apply your policy’s reimbursement rate — typically 70%-90% — to the difference between the bill and your deductible. In the example above, that difference would be $300. If your reimbursement rate is 70%, you’d be responsible for 30% of the remaining $300, or $90.

Types of pet insurance deductibles

There are two types of pet insurance deducitbles: annual and per-incident.

Annual deductible

Most pet insurance policies only require you to pay one deductible a year. This is called an annual deductible. No matter how many covered medical incidents you have, you pay the deductible once. However, you’re still responsible for any balance remaining after the insurer’s reimbursement rate. And some pet insurance companies impose a limit on how much they’ll pay towards your pet’s care in one calendar year.

Per-incident deductible

Some insurers require a per-incident requirement, which means you have to pay the deductible each time your pet has a medical event. This is in addition to any percentage of care you’re required to cover, plus premiums and annual limits.

Check your policy details to see which type of deductible is included for your pet.

Example of an annual deductible vs. per-incident deductible

Let’s take the previous example one step further and compare how a pet insurance deductible works depending on how many incidences it covers. Suppose that after your dog’s digestive incident, he then develops an unrelated skin allergy a few months later. The cost for diagnosis and treatment comes to $600.

With an annual deductible, you would get reimbursed in full for this visit because you already covered your $500 deductible earlier in the year. But if you have a per-incident deductible, you would have to cover that $500 again and would only be reimbursed for $100. That amount would also vary if your plan didn’t include a 100% reimbursement rate.

What is a good pet insurance deductible?

“In pet insurance, a ‘good’ deductible is one that strikes a balance between affordability and practical coverage,” explained Beth Tofel, founder of PawprintID, a personal portable health record for pets. That amount can range anywhere from $200 to $1,000. “Choose your deductible based on the pet’s health and the owner’s financial situation,” Tofel says.

In other words, puppies and senior dogs may have a higher likelihood of needing vet care, so you may opt for a lower deductible in the event of multiple medical events in one year. But you also need to find a balance between the premium and deductible that matches your budget.

Also, consider the frequency of your deductible. If premiums are comparable, opt for an annual deductible so you don’t have to pay it more than once in a single year.

What claims apply to pet insurance deductibles?

Deductibles apply to pet insurance claims that include covered care. Your pet insurance policy should provide details on what types of medical issues are covered and excluded. It may also outline what services are included.

Oftentimes, you can choose from a comprehensive policy that covers accidents, illnesses, and ongoing health conditions, or a more bare-bones policy that only covers accidents.

Accidents may include medical emergencies such as:

• Bite wounds
• Cuts
• Broken bones
• Ingested poisons

Illnesses may cover more common conditions like urinary tract infections or digestive issues, as well as more serious ones like cancer or hypothyroidism.

You may also add on coverage for hereditary or chronic conditions, though this may increase the cost of your premium and deductible.

Finally, most pet insurance policies do have exclusions for pre-existing conditions. If your pet has already been diagnosed with a chronic condition, it may be difficult to get future treatments for that condition covered by a new policy.

Choosing high vs. low pet insurance deductible

There are multiple ways to structure a pet insurance deductible. Most insurance companies let you choose from a range of deductible amounts. However, the amount you choose directly impacts the premium price. A cheaper deductible comes with a higher premium, while a more expensive deductible keeps your premium cost down.

“High deductibles offer lower monthly premiums, making them suitable for pets with fewer health issues, but they mean higher out-of-pocket costs during medical treatments,” Tofel said. “Low deductibles lead to lower out-of-pocket expenses but come with higher monthly premiums, which can add up if the pet rarely needs care.”

Tofel recommends reevaluating your pet insurance policy over time.

“Pet owners might consider changing their policy’s deductible in response to changes in their financial status or their pet’s health needs, such as opting for a lower deductible as the pet ages or develops chronic issues,” she said.

Pet insurance — no deductible

Some pet owners may try to find pet insurance with no deductible in order to save on their veterinary expenses throughout the year. This type of policy is difficult to find. And even if you did find one, your premium would likely be much higher, since cheaper deductibles usually result in more expensive premiums.

Pet insurance deductibles by company