Pet Insurance Deductible Guide

A pet insurance deductible is the total pet care costs that you are responsible for before reimbursements start. Like other types of insurance, you are responsible for part of the cost but there are different deductible options available.

Different Kinds of Pet Insurance Deductibles

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

Annual Deductible

Pet insurance plans with annual deductibles require that you only meet your deductible once per policy term. These plans don’t require deductibles for every vet visit, or once for every different type of condition, which is how some pet insurance companies operate.

Per-incident (or Per-condition) Deductible

Plans with a per-incident pet insurance deductible could end up reimbursing you less when you claim, especially if your pet is seen for a variety of medical issues. 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 pet insurance deductible.

Continue reading to better understand how these pet insurance deductible types work and how you can save with annual pet insurance deductibles.

Embrace Pet Insurance's Deductible Type

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. You also have the opportunity to reduce your annual deductible automatically by $50 each year you don't receive a claim reimbursement thanks to our Healthy Pet Deductible feature.

How an Annual Pet Insurance 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 the deductible once.

Let's take a look at an example of this pet insurance deductible in action.

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 pet insurance policy).


Claim 1 Claim 2 Claim 3
Reason for Visit: Vomiting Laceration Diarrhea
Veterinary Bill: $214.55 $275.09 $650.88
Annual Deductible: $200 $0 $0
Co-pay: $2.91 $55.02 $130.18
Reimbursement: $11.64 $220.07 $520.70

Total Reimbursement: $752.41

How a Per-incident Pet Insurance Deductible Works

A per-incident deductible is applied each time your dog or cat 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 of this pet insurance deductible using 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.


Claim 1 Claim 2 Claim 3
Reason for Visit: Vomiting Laceration Diarrhea
Veterinary Bill: $214.55 $275.09 $650.88
Annual Deductible: $100 $100 $100
Co-pay: $22.91 $35.02 $110.18
Reimbursement: $91.64 $140.07 $440.70

Total Reimbursement: $672.41

Claims that Apply to Your Embrace Deductible

Only charges related to covered accidents and illnesses can be applied towards your deductible. Charges that are not covered will not be applied towards your deductible. This includes charges for routine care (these are reimbursed separately under Wellness Rewards and therefore do not apply toward the deductible) and pre-existing conditions.

If I have multiple pets on a pet insurance policy, do they have seperate deductibles?

Yes, each pet on our pet insurance policy has their own annual deductible that must be met before reimbursement begins.

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.

Is it possible to have a pet insurance policy with no deductible?

While some pet insurance companies do offer a policy with no deductible, you'll pay a considerably higher premium. With Embrace's Healthy Pet Deductible, it's possible for your annual deductible to decrease to $0 while still paying the lower premium of a policy with a higher deductible.