Deductibles are an important part of any pet insurance plan. Like deductibles for your own health insurance, pet insurance deductibles are expenses that are paid out of pocket before the insurance company pays anything. Deductibles prevent insurance providers from having to deal with a large amount of claims that are low dollar amounts. Deductibles reduce costs for an insurance company because they cut down on the paperwork and time involved with processing frivolous items.
Pet insurance deductibles can save you money because you can elect to have higher deductibles and pay lower premiums. These types of arrangements are well suited for pet owners who do not predict any problems with their pets but would still like to have them covered.
There are two primary forms of deductibles: Annual and Incident
Annual deductibles are based on the amount of time that has elapsed. When a new insurance year begins, all of your claims are added up and nothing is paid until the total is greater than the amount of your deductible.
For instance, if you have an annual deductible of $500, then you will not receive any money from your insurance provider until you have a total of at least $500.01 in claims. Therefore, say you receive a bill of $750 from your vet for treating your cat’s fractured leg, then your insurance would pay $250 dollars. If your annual deductible for the same treatment was $100, then your insurance provider would pay $650.
Accident deductibles are best for situations when you don’t expect to pay a lot for medical bills. However, if you think that there is a chance that you may run into some high veterinarian bills in the future, then you may want to consider the other kind of insurance deductible.
The other type of pet insurance deductible is the incident deductible. This kind of coverage is related to individual incidents. Therefore, the amount of the deductible starts over with each new condition.
For example, suppose you have an incident deductible of $200. Now if your cat has a sickness that costs $500 to treat and a broken set of ribs that costs you $1,200, then your insurance provider would pay $1,300. You would have to pay $200 for each incident, and your insurance would pay the rest. Therefore, they would pay $300 for the sickness and $1,000 for the broken ribs.
That’s why it’s a good idea to carefully consider all of your options when deciding on which deductible you should have. You also need to carefully consider the amount of the deductible that you want. If you can handle the higher premiums and think that there is enough risk to merit such preventative measures, then you will probably want lower deductibles. However, if the opposite is true and you think that you will probably not have any significant medical expenses, then you may want to consider having lower premiums and higher deductibles.
So whichever options you choose, make sure you run the numbers so that you make the best choice for your particular situation. Your pet’s health is at stake, so choose wisely and rest a little easier at night, knowing that your pets are protected against unknown dangers that might occur.