Out-of-Pocket Costs

by Pawlicy Advisor
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Out-of-Pocket Costs

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.

Related Terms

Payment Processing Fees
Payment processing fees are fees charged per transaction that cover the cost of your credit card being processed for the payment of a good or service. Many pet insurance providers charge policyholders a payment processing on top of their monthly premium.
Read More.
Per-Incident Deductible
A per-incident deductible is an amount you must pay for every incident that you file a claim for before receiving any reimbursement for that incident.
Read More.
Pet Liability Insurance
Pet liability insurance protects you legally and reimburses third-parties that are injured or have suffered property damage due to your pet’s actions.
Read More.

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