What Is a Good Deductible for Pet Insurance?

How Does a Deductible Work?

Almost all pet insurance plans come with deductibles, which is the amount you have to pay before your insurance coverage kicks in.

All of the payments you make for your pet's care may not apply to your deductible. Typically, fees you pay for covered services apply to the deductible. Services that don't typically apply to the deductible include treatment your insurer doesn't cover, treatment your pet receives during the waiting period and treatment for preexisting conditions.

Read the terms and conditions of your policy carefully so you understand what services do and don't apply.

Once you've met the deductible, the insurance company pays a portion of the bill up to the plan's limit. The amount the insurer pays depends on your plan's reimbursement rate, which varies by provider but generally runs from 70% to 90%. Providers often have multiple reimbursement rates, and policyholders get to choose the one that best fits their needs and budget.

Learn more: How Does Pet Insurance Work?

What Is a Good Deductible for Pet Insurance?

Pet insurance plans typically have deductibles ranging from $0 to $1,000, but policyholders commonly choose deductibles of $100, $250 or $500. Available options vary by insurer and may be affected by where you live and the age of your pet.

Opting for a higher deductible can help you snag a lower premium, but you'll be on the hook for higher out-of-pocket costs if your pet needs medical care. Lower deductibles usually result in higher premiums because the insurance company assumes a larger share of the financial responsibility.

When selecting a deductible, consider your pet's age and health, your plan's reimbursement rate, the cost of care in your area and how much you can afford to pay out of pocket for vet bills. Balancing the desire to save money on your premium with your ability to pay your deductible after a trip to the vet can help you choose an amount that makes the most financial sense.

Learn more: How Much Does Pet Insurance Cost?

Types of Pet Insurance Deductibles

Pet insurance plans may come with more than one kind of deductible. Here's an overview of the types you may see.

Annual Deductibles

An annual deductible is the amount you have to pay each year before the insurer starts picking up the tab. Most pet insurance plans have them, and they reset when your policy renews. Here's how it works.

Example: You purchase a policy with a $500 deductible and an 80% reimbursement rate on September 5, 2025. On October 15, 2025, your dog falls off your bed and breaks his leg. He'll make a full recovery, but the X-ray shows your fur baby needs surgery. The total cost is $2,500.

You pay $500 to meet your deductible. The insurer pays $1,600 of the remaining $2,000 ($2,000 x 0.80 = $1,600), leaving you to cover the last $400.

Since you've met your deductible for the year, the insurance company will pay 80% of all covered services, up to the plan limit, until your policy renews. When your coverage renews on September 5, 2026, you must pay the deductible again before your insurance kicks in.

Per-Incident Deductibles

If your plan has a per-incident deductible (sometimes called a per-condition deductible), you must pay it every time you take your pet to the vet for a new ailment, no matter how many trips you make or how much you've paid in out-of-pocket expenses. If the vet bill is higher than your deductible, your insurance provider will reimburse you for a portion of the bill that exceeds the deductible. If not, you're on the hook for the total cost.

Example: Your plan has a $100 per-incident deductible. In January, your puppy develops kennel cough. A trip to the vet and medication costs you $100. You pay the $100, and the insurance company pays nothing.

In June, your pup gets stuck trying to crawl under the fence in your backyard. Fortunately, her injuries aren't serious, but she needs stitches. The cost to treat the wound comes in at $800. After paying $100 to meet the per-incident deductible, the insurance company pays 90% (the plan's reimbursement rate) of the remaining $700.

Lifetime Per-Condition Deductibles

When an insurance company has a lifetime per-condition deductible, you pay your deductible once for each illness or injury your pet sustains for as long as you maintain your policy. Unlike annual and per-incident deductibles, once you meet this type of deductible, you don't have to pay it again. All the care your pet receives for that specific illness or injury is covered under your plan, up to the policy limit.

Example: You notice a lump under your dog's skin and take them to the vet to get it checked out. The vet runs some tests to help determine if it's a cyst or something more serious. Unfortunately, the diagnosis is cancer. Your pup needs surgery and several rounds of chemotherapy.

The cost of the diagnostic testing is less than your deductible, so you pay the full amount out of pocket, and the insurer applies the services your pet received to your deductible. When your dog has surgery, you pay the remaining deductible amount, but that doesn't cover the total cost. The insurance company picks up a portion of the tab that exceeds the deductible based on your plan's reimbursement rate.

Because you've already met your deductible, the cost of chemotherapy and any other cancer-related care your pet receives is covered under your plan. You won't have to pay your deductible again unless your pet develops a different condition that requires treatment.

When your vet diagnoses your pet with an illness, such as diabetes or cancer or your fur baby needs treatment for an injury they sustain, you pay the full deductible upfront; you never have to pay it again. After that, the care your pet receives for that ailment is covered under the plan, and you will be reimbursed based on the terms and conditions of your policy.

Learn more: Most Pet Owners Who Have Pet Insurance Say It's Worth the Cost

Diminishing Deductibles

Some companies may reward you with a lower deductible for not filing a claim. Providers that offer this perk typically reduce your deductible without changing your premium if you haven't filed a claim for a certain number of months. For example, if your deductible is $500 and you don't file a claim for a year, the provider reduces your deductible to $450.

Average Pet Insurance Deductible by Company

Deductible options vary by company. Here's a breakdown of amounts you may be able to choose popular pet insurers.

Does Each Pet Need a Separate Deductible?

It depends. Most pet insurance companies require pet parents to purchase separate policies for each pet they want to insure. When each pet has its own policy, it has its own deductible. If you insure your pets on different policies, you must meet the deductible on each pet's insurance plan before your coverage kicks in.

However, some pet insurance companies allow you to insure all your pets on the same policy with a shared deductible. If your policy has a shared deductible, every visit (for covered services) gets applied to the deductible, no matter which pet is receiving care. Treatment for all pets applies to one deductible. When you meet that deductible, the insurance company covers future services no matter which pet needs care.

Learn more: Pet Insurance Mistakes to Avoid

How to Save on Pet Insurance

If you want the protection pet insurance offers but aren't sure you can afford the premiums, here are some ways you may be able to save.

• Shop around and compare quotes. Rates vary by provider. To find coverage that fits your needs at the lowest rate you can qualify for, shop around and compare quotes from multiple companies.
• Customize plan features. Your policy's deductible, reimbursement rate and policy limits affect how much you pay for coverage. Opting for a higher deductible, lower reimbursement rate and lower policy limits can help reduce your premium because you're assuming a larger share of the cost.
• Choose the best plan for your needs. There are three main types of pet insurance to choose from—wellness, accident-only and accident plus illness. Choosing a plan based on your pet's age, health and breed can help ensure you don't pay for coverage you don't need.
• Take advantage of discounts. Many insurance companies offer discounts to help policyholders save. When shopping for coverage, look for multipet, bundling and other discounts that may reduce your rate.

Learn more: Do I Need Good Credit for Pet Insurance?

The Bottom Line

To determine the deductible that makes the most sense for you, consider your financial health, the age and health of your pet and your plan's reimbursement rate. It can be tempting to opt for a higher deductible or lower reimbursement rate to pay less for your policy. But it's important to choose an amount that you can afford to pay if you need to file a claim.