If you are a caring and passionate pet owner, you must procure an excellent pet insurance for your pet. The insurance covers your pet against unexpected health concerns.
Here are a few facts about pet insurance:
- A pet requires an emergency medical attention every two and half seconds.
- A pet owner is served with an unbelievable vet bill of over $3000 every six seconds
- 2 out of every 3 pets will experience a major health issue during their lifetime
Of equal importance though is reimbursement, the amount your pet insurance company pays you for the expenses you incur when you take your pet to a vet. While reimbursement is expressed as a percentage ranging between 60% and 100%, the majority of pet insurance plans have a reimbursement of either 80% or 90% of the total vet bill.
How it Reimbursement Works
In insurance accounting, reimbursements are based on your actual vet bill. As such, you will receive an itemized statement from your vet whenever your cat or dog receives treated.
You will then submit a claim to your pet insurance company based on the bill you received from your pet. The pet insurance company will ultimately send you a check or deposit funds to your account once they examine and approve your claim.
Please note that the pet insurance company will take up to a maximum of 15 days after receiving your claim submission before issuing a check or refunds.
The reimbursement system works on the fact that the higher your reimbursement percentage, the more expensive your plan will be. This is rightfully so because you’ll end paying less out of your pocket after a claim.
Example of a Reimbursement
If your contract agreement with insurance company A is that your reimbursement level is 90%, and your claim is for $1,000; company A will pay $900, and you will pay $100.
The $100 is your deductible; it is paramount that you keep in your mind that you will be responsible for paying this amount each time you submit a claim. The most frequent deductible amounts are $100, $200 and $500.
Here is a more vivid example of how pet insurance companies calculate your reimbursement rates.
- Covered Treatment Cost: $5,000
- Reimbursement Rate: 90%
- Calculation: $5,000 x 90% = $4,500 reimbursed
- Now Subtract Your Deductible: $100
- Total Reimbursed by Insurer: $4,400
A Few Facts to Note about Reimbursements
It is important that your insurance company reimburse you based on your actual bill. Avoid firms that use benefits schedules or hidden terms or fees that reduce your reimbursement percentage or amount.
Most pet insurance companies will allow you to pick your reimbursement level and the deductible amount.
While that is so, it is also crucial to know the type of deductible your plan incorporates; some companies provide their customers with options of either annual or per incident deductible.