Pet Insurance Deductible Guide

Plans with a per-incident deductible could end up reimbursing you less when you claim. If you want to know what you're in for, or if you expect your pet to be prone to accidents or illnesses, then you might want to consider a plan with an annual deductible.

There Are Different Kinds of Deductibles

There are two popular types of deductibles that the major pet insurance plans use:

  • Annual deductible
  • Per-incident deductible (also referred to as a per-condition deductible)

Here at Embrace our plan has an annual deductible. We believe annual deductibles are easier to understand when you claim and fairer to you as a pet parent.

How an Annual Deductible Works

An annual deductible is the simplest type. You pay it just once per policy year for each pet. With an annual deductible it does not matter how many times you go to the veterinarian each policy year, you still only have to meet it once.

Let's take a look at an example.

The table below shows sample claims for a dog that visits the veterinary hospital three times during one policy year. The maximum amount you will pay towards your deductible for this pet is $200.00 per year (you can choose your annual deductible when personalizing your policy).

corner-left Date of Claim: 3/15/12 8/19/12 12/25/12 corner-right
  Reason for Visit: Vomiting Laceration Diarrhea  
  Veterinary Bill: $214.55 $275.09 $650.88  
  Annual Deductible: $200.00 $0.00 $0.00  
  Copay: $2.91 $55.02 $130.18  
  Reimbursement: $11.64 $220.07 $520.70  
  Total Reimbursement: $752.41  

How a Per-incident Deductible Works

A per-incident deductible is applied each time your pet goes to the veterinarian for a new incident. For example, an episode of vomiting would count as an incident and a laceration would count as a separate incident. Your deductible resets for each incident.

Let's take a look at an example and use the same vet visits as before.

You can easily see that the $100.00 per-incident deductible is paid three times because the incidents are not related. Depending on how many times and for what reasons your pet visits the veterinarian, you could pay multiple per-incident deductibles each policy year.

corner-left Date of Claim: 3/15/12 8/19/12 12/25/12 corner-right
  Reason for Visit: Vomiting Laceration Diarrhea  
  Veterinary Bill: $214.55 $275.09 $650.88  
  Per-incident Deductible: $100.00 $100.00 $100.00  
  Copay: $22.91 $35.02 $110.18  
  Reimbursement: $91.64 $140.07 $440.70  
  Total Reimbursement: $672.41  

Healthy Pet Deductible

Embrace is the only pet insurance plan that reduces your pet's annual deductible automatically by $50 each year that you don't receive a claim reimbursement. The Healthy Pet Deductible feature is included at no charge with every Embrace policy.