Should I choose a higher or lower deductible for pet insurance?

Higher deductibles mean lower premiums but more out-of-pocket costs. Choose higher if your pet is healthy; lower if you expect frequent vet visits or have a breed-prone to health issues.

What's the difference between annual and per-incident deductible?

Annual deductibles reset once per year, so you pay once then insurance kicks in for all conditions. Per-incident deductibles apply to each new health issue, meaning multiple conditions mean multiple deductibles.

Can you change your pet insurance deductible?

Most insurers allow deductible changes at policy renewal. Note that changes may affect premiums and coverage terms.

Pet Insurance Deductibles Explained: Annual vs Per-Incident

Choosing the right deductible can significantly impact both your monthly costs and out-of-pocket expenses when your pet needs care. Let’s break down the two main types.

What Is a Pet Insurance Deductible?

A deductible is the amount you pay before insurance coverage begins. It’s your share of the risk.

Example: With a $500 deductible and 80% reimbursement:

Vet bill: $2,000
You pay first: $500 (deductible)
Remaining: $1,500
Insurance pays: $1,200 (80% of $1,500)
Your total cost: $800

Annual vs Per-Incident Deductibles

Annual Deductible

How it works: You pay the deductible once per policy year, regardless of how many claims you file.

Pros	Cons
One deductible covers all conditions	Higher deductible amounts common
Predictable annual costs	Pay full amount even for small claims
Better for chronic conditions	Less meaningful for occasional visits

Best for: Pets with chronic conditions, multiple health issues, or frequent vet visits.

Per-Incident Deductible

How it works: You pay a separate deductible for each new condition or incident.

Pros	Cons
Lower deductible per condition	Multiple conditions = multiple deductibles
Pay less for single-issue claims	Unpredictable total costs
Common lifetime coverage trigger	Chronic conditions keep the same deductible

Best for: Generally healthy pets with occasional accidents or illnesses.

Real-World Comparison

Let’s compare both types with a $250 deductible and two conditions in one year:

Scenario 1: Two Separate Conditions

Condition 1: Ear infection - $400 treatment Condition 2: ACL injury - $3,500 surgery

Deductible Type	Condition 1	Condition 2	Total Deductible
Annual ($250)	$250	$0	$250
Per-Incident ($250)	$250	$250	$500

Winner: Annual deductible saves $250

Scenario 2: Ongoing Chronic Condition

Condition: Allergies requiring 4 vet visits/year

Deductible Type	Visit 1	Visits 2-4	Total Deductible
Annual ($250)	$250	$0	$250
Per-Incident ($250)	$250	$0*	$250

*Same condition, same deductible applies

Result: Tie - both work the same for ongoing conditions

Scenario 3: Single Major Emergency

Condition: $5,000 emergency surgery

Deductible Type	Deductible Paid
Annual ($500)	$500
Per-Incident ($500)	$500

Result: Tie - no difference for single conditions

How to Choose the Right Deductible Amount

Higher Deductible ($500-$1,000)

✅ Lower monthly premiums
✅ Better for healthy pets
✅ Suitable for emergency-only coverage
❌ More out-of-pocket for claims

Lower Deductible ($100-$300)

✅ Lower out-of-pocket per claim
✅ Better for chronically ill pets
✅ Easier to reach reimbursement
❌ Higher monthly premiums

Breaking Even Analysis

To determine if a lower deductible is worth it:

Example: $200 deductible vs $500 deductible

Monthly premium difference: $15
Annual premium difference: $180
Deductible savings: $300

Result: If you expect at least one claim per year, the lower deductible saves $120 ($300 - $180).

Insurers by Deductible Type

Insurer	Deductible Type	Options
Healthy Paws	Annual	$100 - $500
Embrace	Annual	$100 - $1,000
Lemonade	Annual	$100 - $500
Trupanion	Per-Incident (Lifetime)	$0 - $1,000
Pets Best	Annual or Per-Incident	$50 - $1,000
Nationwide	Annual	$250

Special Case: Trupanion’s Lifetime Deductible

Trupanion uses “lifetime per-condition” deductibles. Once you pay the deductible for a condition, that condition is covered for life with no additional deductible.

Example: $500 deductible for hip dysplasia

Year 1: Pay $500 deductible, all future hip dysplasia treatment covered at 90%
Years 2-10: No additional deductible for hip dysplasia

Expert Tips

Match Deductible to Pet Health: High-risk breeds → lower deductible
Consider Multi-Pet Savings: Some insurers offer shared deductibles for multiple pets
Review at Renewal: Healthy year? Consider raising deductible to save on premiums
Calculate Break-Even: Do the math before choosing

Our Recommendation

For most pet owners:

Annual deductible with $250-$500 range offers the best balance
If you have a high-risk breed, opt for $200 or less
For healthy young pets, $500 keeps premiums affordable

The right deductible depends on your pet’s health status, your budget, and your risk tolerance. There’s no one-size-fits-all answer—but understanding the difference helps you make the smartest choice.