Annual Deductible

by Pawlicy Advisor
Pet Insurance Terms
Annual Deductible

What is an Annual Deductible?

An annual deductible is the amount of money you must pay out-of-pocket towards veterinary expenses before you can start getting reimbursed for veterinary costs from your pet insurance plan.

Some pet insurance basics: the lower your annual deductible is, the less you’ll have to pay out-of-pocket to begin getting reimbursed for eligible veterinary costs by your pet insurance provider.

How Annual Deductibles Work

An annual deductible is decided by which pet insurance plan you choose. For example, suppose you have an annual deductible of $500. In that case, you will need to pay $500 in veterinary costs out-of-pocket every year before you can begin getting reimbursed for veterinary costs by your pet insurance provider. Depending on your budget, a lower or higher annual deductible can work well in your favor based on how it affects your monthly premium or how much coverage you want for your pet.

Key Takeaways

  • An annual deductible is the amount of money you must pay for veterinary services out-of-pocket before you’ll begin receiving reimbursement from your pet insurance provider for eligible expenses.
  • A lower annual deductible means you’ll have to spend less out-of-pocket for veterinary care annually.
  • Changing your annual deductible will change your monthly premium.

Related Terms

Annual Limit
An annual limit is the maximum amount of money your pet insurance provider will reimburse you for within one year and varies dramatically depending on your pet insurance plan.
Read More.
Average Days to Reimburse
The average number of days to reimburse is how long it typically takes for your pet insurance plan provider to reimburse you for any eligible claims made.
Read More.
Benefit Schedule
A benefit schedule is a structured list of illnesses and diagnoses covered under your pet insurance plan and the maximum amount of money your plan will reimburse you.
Read More.

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