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What is a deductible for pet insurance?
A deductible is the amount you pay toward eligible vet expenses before your insurer contributes their share. You choose the deductible when buying the policy, and it can be charged once a year or per claim, depending on your insurer.
How do pet insurance deductibles work?
Pet insurance covers part of your vet bills. When it comes to vet care for your furry friend, there will almost always be an out-of-pocket cost to pay, and the amount will depend on your deductible, your policy’s reimbursement rate, and annual limits.
Depending on your insurer and vet, you may pay the full bill upfront and claim later, or just pay the gap if the vet claims directly.
What types of pet insurance deductibles are there?
- Annual deductible – Paid once per policy year. No further deductible until renewal. Good if your pet needs regular care.
- Per-condition deductible – Paid for each new illness or injury. Example: $200 for a skin allergy claim, then another $200 if your pet later develops an ear infection.
- No deductible – Higher premiums, but you pay nothing upfront for eligible claims.
What kind of deductible should you choose?
When choosing, think about how much you’re comfortable paying in premiums versus how much you’d be able to pay upfront (without your jaw hitting the floor) if your pet needs surgery.
A lower deductible will mean higher premiums each month but less to pay upfront, whereas a higher deductible will mean lower premiums, but a bigger hit upfront should you need to make a claim.
The question will come down to your budget, versus your pet’s needs, breed and health history.
Based on a survey of providers’ websites, most pet insurance policies in Australia will let you choose a deductible of between $100 and $500, with a $200 deductible being the most common amount.
How does a benefit percentage work?
After you’ve paid your deductible, you may still have extra to pay out of pocket because of your policy’s benefit percentage. A benefit percentage is the portion of the remaining vet bill your insurer will pay, after you’ve paid your deductible.
Here we walk you through how this might work in practice.
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| Vet bill amount: | $1,000 |
|---|---|
| Your deductible: | $200 |
| Your insurance pays: | $640 (80% of $800) |
| You pay: | $160 (20% of $800) |
| Total amount paid by you: | $360 |
Always check your policy’s annual limit (the most you can claim each year) and any sub-limits that cap the amount you can claim for specific treatments.
Can I change my pet insurance deductible?
Whether or not you can change your deductible depends on your insurer. Some providers allow this, but know that changing your deductible will hit your premiums, and if you ask to lower your deductible after your pet has shown signs of a certain illness, you may not be allowed to. There may also be limits if you’ve already made a claim. For example, some insurers might only let you increase your deductible, not lower it, once a claim has been filed during the policy period.
