When it comes to pet insurance, a deductible is an amount for which a customer is responsible. The customer has to pay this amount before the insurer starts paying for other expenses. With annual deductibles, insurance companies aim to decrease the number of small claims made by an insured customer. For example, let’s assume that a customer has a pet insurance plan with an annual deductible of $1000. If that person takes their pet for a treatment which costs $400, then they will have to pay the whole amount. If in the same year, their pet needs another treatment which costs about $300, they will have to continue paying for it. By this time, they have spent around $700 in a year on for their pet’s health. However, if the next treatment costs $1500, then the customer will only have to pay $300 (to reach the amount of the annual deductible), and the insurance company will pay the remaining sum of $1200. From this example, we can understand how an insurance company’s workload is reduced by a fall in the number of claims. Moreover, the customer will not bother the insurance company for these small claims and cover these expenses by themselves.
Thus, with annual deductibles for pet insurance, you have to pay for every policy term until its limit is reached. These annual deductible plans don’t work like other deductibles in which you pay for every visit. The sum of the annual deductible depends on the plan you pick.
How does an annual deductible work?
Annual deductible works in a simple way. In this type of deductible plan, you have to pay a sum annually per policy for every pet that you have. When you select an annual deductible plan, you don’t have to pay for each visit once you reach your annual deductible limit. This amount is the out of pocket expenses covered by the customer. In this deductible plan, the number of visits to a veterinary doctor does not matter. The only thing that matters is the amount that you need to pay out of your pocket.
You must have separate pet insurance plans for every pet that you own. In the case of annual deductibles, it is necessary to pay each pet’s annual deductible separately before the reimbursement process starts. Generally, when you have a higher annual deductible amount, the monthly premiums are lower.
Annual deductible plans for different insurance companies
Various insurance companies provide you with different coverage plans with varying amounts of deductibles. You can pick one of them for your pet. We are describing the deductible plans of some popular pet insurance companies so that you can compare and select one that suits your pet’s needs:
Selecting a pet insurance plan is very confusing. The annual deductible amount might help you in choosing a suitable pet insurance plan.