A Guide to Pet Insurance Deductibles

A pet insurance deductible is the amount of money you pay out of pocket before your insurance starts covering costs. Understanding how deductibles work can help you choose the right pet insurance policy for you and your pet.

In this guide, we’ll explain what a pet insurance deductible is, explore the different types, and help you pick the best option for your needs.

What Is a Pet Insurance Deductible?

In pet insurance, a deductible is the amount you must pay before your policy starts covering your veterinary expenses. Essentially, it’s the portion of your vet bills that you cover before receiving a reimbursement.

Pet insurance plans typically include a deductible, which may be a fixed amount or a range you can select from. Some plans offer a lower deductible. But remember, a lower deductible often results in a higher premium.

At MetLife Pet Insurance, our plans are fully customizable. You can choose a deductible from $50 – $2,500 based on your needs and budget.¹ We also offer a healthy pet incentive, which can reduce your deductible each year you remain claim-free.²

Deductibles vs. Reimbursement³ Rates and Co-Pays

Before choosing a deductible for your pet insurance policy, it’s important to understand how they compare to reimbursement rates and co-pays.

Reimbursement rates

Your reimbursement rate is the percentage of your covered veterinary expenses that your insurance policy pays back after you’ve met your deductible. For instance, if you have an 80% reimbursement rate and the veterinary bill is $500, you would receive $400 back as long as you’ve already met your policy’s deductible. The remaining $100 of the bill is your responsibility.

Unlike deductibles, which are an out-of-pocket cost, reimbursement rates determine how much of the remaining bill you’ll be reimbursed for after the deductible is met.⁴

Co-pays

In pet insurance, the concept of a co-payment, or co-pay, differs from human health insurance. Unlike human insurance, pet insurance policies typically don’t have a fixed co-pay amount for each vet visit. Instead, the amount you pay out of pocket each time is determined by your reimbursement rate.

Let’s revisit the example above. If your reimbursement rate is 80%, you’re responsible for the remaining 20% of the vet bill. This percentage is calculated based on the total cost of the service, rather than a fixed co-pay amount.⁵

How Does a Pet Insurance Deductible Work?

Pet insurance deductibles operate similarly to traditional health insurance deductibles. After you pay your deductible, your insurance coverage kicks in, and you’ll be reimbursed for eligible veterinary expenses up to your annual benefit limit. However, you’ll still need to pay the portion of the bill that isn’t covered by your reimbursement rate.

What Are the Different Types of Pet Insurance Deductibles?

Understanding the different types of pet insurance deductibles can help you choose the best plan for you and your pet. Keep in mind that MetLife Pet Insurance has annual deductibles for both dog insurance and cat insurance policies.

Here’s a breakdown of these two types of pet insurance deductibles.

Annual deductibles

An annual pet insurance deductible is the amount of money you need to pay for covered incidents each year. This type of deductible resets annually, making your out-of-pocket cost more predictable.

For example, let’s say you have pet insurance with a $250 annual deductible and a 100% reimbursement rate. You submit a pet insurance claim from a recent trip to the vet that cost $600. You haven’t met your deductible yet, so even though the vet bill is covered by your policy, you’re responsible for the first $250.

After the claim is processed, you receive $350 back. Your next vet trip costs $150, but because you met your annual deductible and these expenses are also covered by your policy, you get the full amount reimbursed.

Per-incident deductibles

A per-incident deductible, also known as a per-condition deductible, is the amount you pay for each individual illness or injury your pet experiences. This means you need to meet the deductible amount for each new condition or incident.

For instance, if your pet insurance has a $100 per-incident deductible and a 100% reimbursement rate, and your pet incurs a $500 vet bill for an injury covered by the policy, you would pay the $100 deductible and receive $400 back. If your pet later needs treatment for a different issue covered by the policy, costing $700, you would need to pay another $100 deductible for this new condition and then receive $600 back.

What It Means To Have a High vs. Low Pet Insurance Deductible

When reviewing pet insurance policies, you’ll have to choose whether you want a high- or low-deductible plan. Your choice will affect both your monthly premium and out-of-pocket costs when filing a pet insurance claim.

Considering the trade-offs between higher and lower deductibles for pet insurance can help you make the best decision for your financial situation and your pet’s needs.

High-deductible pet insurance policy

• Results in lower monthly premiums
• Requires you to cover more of the initial costs out of pocket before your pet insurance starts reimbursing you
• May be suitable if you want to save on monthly payments and can handle larger upfront veterinary bills⁶

Low-deductible pet insurance policy

• Leads to higher monthly premiums
• Reduces the amount you pay out of pocket when your pet requires care
• May be beneficial if you expect frequent vet visits or want to minimize upfront costs when filing a claim⁶

Can Multiple Pets Be Covered Under One Deductible?

With MetLife Pet’s family plan, you can cover up to three pets under one deductible on a single policy, which can provide a convenient and cost-effective solution for pet insurance for multiple pets.⁷ However, most other pet insurance providers require separate policies and deductibles for each pet.⁸

Choose the Right Pet Insurance Deductible

Selecting the right deductible option is essential to ensuring your policy meets both your budget and your pet’s health needs. A lower deductible might offer some peace of mind by reducing your out-of-pocket expenses during emergencies, while a higher deductible can help lower your monthly premiums.

Ultimately, a great choice is a deductible you can comfortably afford when unexpected vet bills arise.

Take the next step in protecting your pet — get a free pet insurance quote today to find the right coverage and deductible for your situation.