What Is a Deductible in Pet Insurance and How Does It Work?

A very important guide to choosing the right insurance for your budget.

January 1, 1970

In This Article:

What Is a Deductible in Pet Insurance, and How Does It Work? Types of Pet Insurance Deductibles Comparing Deductible Options How to Choose Your Pet Insurance Deductible

As veterinary costs continue to rise, pet insurance enrollment is surging. According to the North American Pet Health Insurance Association, US premiums increased by 21.4 percent in 2024 to more than $4.7 billion. The number of insured pets (mostly cats and dogs) grew by 12.7 percent to 6.4 million.

As you ponder the fine print, the word “deductible” will become part of your pet insurance vocabulary. Like interactive slider toys for cats, deductibles let pet parents “slide the numbers” to find their perfect formula. While it may seem confusing at first, understanding how those numbers work can help you choose the right balance for your pet and your wallet.

An insurance deductible is the amount you pay out-of-pocket before you’re eligible for reimbursement.
Different deductible types — annual, per-incident, and lifetime — can affect your costs and coverage strategy.
A lower deductible means higher monthly premiums, but less payout when your pet needs care.
A higher deductible lowers your premiums, but increases what you’ll owe if your pet has an emergency.
The best deductible for you depends on your pet’s age, health, and how much financial risk you can handle.

How much do you spend on your pet per year?

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

Christie Horvath, CEO of the pet insurance company Wagmo, says a pet insurance deductible is the amount you pay out-of-pocket before your insurance company starts reimbursing you for covered expenses. “It’s your ‘skin in the game,’” she explains. “It’s the insurance company’s way of making sure you share some of the financial responsibility.”

For instance, Horvath says, if you have a $500 deductible and your dog needs an emergency treatment for $2,000, you pay the first $500 and your insurance covers the remaining $1,500 (based on your reimbursement percentage, which is usually 70 to 90 percent).

Wagmo’s most popular deductible is $500 per year. “It’s low enough to provide meaningful protection without being financially devastating to pay, yet high enough to keep your monthly premium reasonable,” Horvath says. “Ultimately, the best deductible is the one you can afford to pay. There’s no point in having a $250 deductible if the monthly premium strains your budget so much that you cancel the policy before you ever need it.”

Types of pet insurance deductibles

Annual

Annuals are the most common, straightforward type of deductible. “You pay the deductible once per policy year, regardless of how many vet visits or claims you file. Once you’ve met it, you’re done for the year,” Horvath says.

Consider a dog who has had three separate incidents in one year: An ear infection for $300, a laceration for $400, and a stomach issue for $800. Horvath explains that, with a $250 annual deductible, you’d pay $250 of the bill for the ear infection, and your insurance company would reimburse you for the remaining claims at your coverage percentage without requiring you to pay the deductible again.

Per incident

If you have a per-incident (or per-condition) deductible, you pay the deductible each time your pet has a new illness or injury. “If your dog tears an ACL and later develops an ear infection, you’d pay the deductible twice, once for each separate condition,” Horvath says.

Say your cat needs a $1,200 dental surgery, then gets diagnosed with diabetes, and treatment costs $900. If you have a $500 per-incident deductible, you’d pay $500 for the dental surgery and another $500 for the diabetes treatment. That adds up and explains why most modern pet-insurance companies have moved toward annual deductibles, Horvath says.

Lifetime

Lifetime deductibles are rare, but worth mentioning. “With a lifetime deductible, you pay the deductible once during your pet’s entire lifetime,” Horvath says. “After that, you never pay it again.” Trupanion is one of very few companies that offers a lifetime, per-condition deductible. That means you pay the deductible once for a specific condition. Then, you’re only responsible for the coinsurance (the percentage of the bill that’s not reimbursed — or the opposite of the reimbursement rate) for that illness for the rest of your pet’s life, which can be a significant benefit for chronic conditions.

Comparing deductible options

This is where the deductible game comes in: strategically balancing your monthly premium against what you’re willing (and able) to pay out of pocket. When you’re comparing pet insurance plans and choosing options, much of that strategy depends on the age of your pet, their general health, and their predisposition to disease. If you have a lower deductible, you’ll pay a higher monthly premium, but you’ll pay less before your insurance begins to cover costs. A higher deductible lowers your monthly premium, but requires you to pay more out-of-pocket before your insurance kicks in.

MetLife Pet Insurance offers highly customizable deductibles. Brian Jorgensen, the company’s CEO, says MetLife’s lower deductible options range from $0 to $750 in $50 increments. The higher bracket ranges from $1,000 to $2,500. The annual limit option ranges from $500 to $25,000 in $1,000 increments. Reimbursement options are 50 percent, 70 percent, 80 percent, and 90 percent. “Pet parents can select the deductible, annual benefit limit, and reimbursement percentage that best fits their financial situation,” Jorgensen says. “Securing pet insurance can be a low-cost, simple way to address significant out-of-pocket veterinary expenses.”

Lower deductibles vs. higher premiums

Horvath says the insurance industry defines low deductibles as those in the $100 to $250 range. “They’re for pet parents who want minimal surprise costs, those with pets prone to frequent vet visits, or those who prefer predictable budgeting,” she says. People with older pets and breeds prone to hereditary issues (such as Bulldogs, Golden Retrievers, and Maine Coons) typically opt for lower deductibles. If you can afford the fixed cost of a higher monthly premium, and your pet has a chronic or recurring condition such as allergies, diabetes, or arthritis, you’ll want to consider a low deductible.

Higher deductibles vs. lower premiums

Higher deductibles range from $500 to $1,000 or more, Horvath says. “They’re for pet parents with young and healthy pets, those who want insurance primarily for catastrophic events, or those comfortable with more financial risk in exchange for lower monthly costs,” she says. “You pay more out-of-pocket when filing claims, but your monthly premium is lower.”

How to choose your pet insurance deductible

After years in the pet insurance industry and countless conversations with pet parents, Horvath recommends thinking about the following five things to choose the right deductible for you.

1. Assess your financial comfort zone

Ask yourself, “If my pet needed emergency surgery tomorrow, what amount could I comfortably pay out-of-pocket without financial stress?” she says. “That’s your deductible sweet spot. Don’t choose a $1,000 deductible if you don’t have $1,000 readily available.”

2. Consider your pet’s age and health

If you have young, healthy pets, a higher deductible might make sense since they’re less likely to need frequent care. If you have senior pets or breeds prone to health issues, a lower deductible provides more financial protection as vet visits become more frequent.

3. Think about your risk tolerance

“Are you someone who wants maximum peace of mind, or are you comfortable taking on more financial risk to save on monthly premiums?” Horvath asks. There’s no wrong answer — this is whatever seems reasonable to you.

4. Do the math

Calculate the annual cost difference between deductible options. “If a $250 deductible costs $20 more per month than a $500 deductible, that’s $240 per year,” Horvath says. “If your pet typically has one or two incidents per year, the lower deductible might actually save you money.”

5. Remember: Insurance is for the unexpected, and life is not unpredictable.

Channel your future you, and imagine how relieved you’ll be when you’re covered for an emergency. “Most days it feels like money you’ll never get back — until the day your dog swallows a sock, and you realize it just saved you five grand,” Horvath says. “Choose a deductible that protects you from financial catastrophe while keeping your premium affordable.”

Bottom line

Pet insurance is there to soften the blow when life throws you an unexpected curveball — from sudden illnesses to late-night emergency visits.
Choosing the right deductible comes down to comfort and balance. A lower deductible means higher monthly premiums but fewer financial surprises, while a higher deductible keeps premiums low but leaves you with more to cover upfront.
There’s no one-size-fits-all answer — just the option that feels right for your pet, your budget, and your peace of mind.

Catherine Fahy Green

Catherine Fahy Green is a journalist turned copy and content writer. As a pets writer, she focuses on and is fascinated by animal body language because there's so much to learn from and about animals by spending time in their presence and observing their physical cues.

Her work as a PR specialist appears in national trade media as press releases and stories about exciting new products people should try. She lives with her family in Western Massachusetts, where she listens closely to the stories her two dogs, flock of chickens, and four horses tell her. She spends her weekends at horse shows with her daughter.