What are Out-of-Pocket Costs?
In pet insurance, out-of-pocket costs are expenses that you, the pet owner, must pay for without reimbursement from your insurance company. Out-of-pocket costs may include costs that are not covered by your particular pet insurance plan or they may occur when you’ve hit your maximum limit with your pet insurance provider for the year or specific incident.
How Out-of-Pocket Costs Work
Most pet parents pay for their pet’s medical expenses out-of-pocket currently. However, pet insurance can save you money by paying for a percentage of your pet’s eligible medical expenses. Rather than paying for your pet’s veterinary bills by yourself, a pet insurance plan will cover your pet and reimburse you for eligible out-of-pocket costs, which provides you with a financial buffer. Even with an active pet insurance plan, you will still have some out-of-pocket costs, but pet insurance can dramatically reduce these costs and give you peace of mind knowing that your pet is covered.
Key Takeaways
- Out-of-pocket costs are any costs that you pay without help from a pet insurance plan.
- Many pet parents pay for all of their pet’s veterinary bills out-of-pocket, but pet insurance gives you a financial buffer and alleviates this burden by reimbursing you for a percentage of eligible out-of-pocket veterinary costs.
