How dog insurance works

Deductible, reimbursement and annual limit in plain English, with a worked example of what you pay on a $4,000 bill.

Labrador Retriever
On this page
  1. You pay, then get paid back
  2. The three numbers
  3. A worked example
  4. The premium trade-off
  5. What is not covered

Updated September 25, 2026. Prices are BreedSure estimates; each insurer's policy documents control.

What will it cost for your dog?

Pick your breed, age and ZIP code to see the estimated monthly price from the insurers we compare.

Model updated Sep 2026 · No phone calls · Independent

You pay the vet, then the insurer pays you

Most US pet insurance works by reimbursement. You pay the vet bill, send a claim with the invoice (usually from an app), and the insurer pays back its share, typically within days to a couple of weeks. A few insurers, including Pets Best and Trupanion, can pay some vets directly.

The three numbers that set your payout

  • Deductible: what you pay before the insurer pays anything, usually once per policy year.
  • Reimbursement: the share of each bill the insurer pays after the deductible, usually 70%, 80% or 90%.
  • Annual limit: the most the insurer pays in a policy year. Some plans are unlimited.

A worked example: a $4,000 bill

Here is what you would pay on one $4,000 bill, the kind a cruciate ligament repair or a bad case of pancreatitis can produce, depending on the plan you pick:

Deductible70%80%90%
$100$1,270$880$490
$250$1,375$1,000$625
$500$1,550$1,200$850
$1,000$1,900$1,600$1,300

Assumes a covered condition, the deductible not yet met this year, and a bill within the annual limit.

The trade-off: a lower bill or a lower premium

Every choice that lowers your share of a bill raises the premium. In our price model, relative to 80% with a $250 deductible:

  • A $500 deductible lowers the premium about 15%; a $1,000 deductible about 30%; a $100 deductible raises it about 20%.
  • 90% reimbursement raises it about 15%; 70% lowers it about 12%.

The common middle ground is 80% with a $250 to $500 deductible. If you have savings to absorb a higher deductible, it is usually the cheapest way to keep strong coverage for the big bills. Try it on the calculator.

What is usually not covered

  • Pre-existing conditions and anything that starts during the waiting period.
  • Routine care such as vaccines, flea and tick prevention and cleanings, unless you add a wellness plan.
  • Exam fees, on some plans: 5 of the 8 insurers we compare treat them as an add-on or exclude them.

Check how this applies to your breed

Deductible. What you pay yourself before the insurer starts paying. Most reset every policy year; some insurers charge it once per condition. More in the glossaryReimbursement. The share of an eligible vet bill the insurer pays back after your deductible. At 80%, a $1,000 covered bill returns $800. More in the glossaryAnnual limit. The most the policy pays in one policy year. "Unlimited" means there is no yearly cap. More in the glossaryPre-existing condition. Anything diagnosed or showing symptoms before coverage starts or during the waiting period. No insurer we list covers it. More in the glossaryWaiting period. How long after the policy starts before accidents, and then illnesses, are covered. Anything that begins during the wait is excluded. More in the glossaryWellness add-on. An optional extra that pays for routine care such as vaccines, check-ups and dental cleanings, which accident-and-illness plans do not cover. More in the glossary