Pet Insurance Terms Explained in Plain English

Money terms

• Premium: what you pay each month or year to keep the policy.
• Deductible: what you pay yourself before the insurance pays. It may be per year, per condition, or per incident, so check which.
• Reimbursement rate: the percentage of the eligible bill the insurer pays after the deductible.
• Annual limit: the most the policy will pay in a policy year.
• Per-incident or lifetime limit: caps that apply to one condition or to your pet's whole life.

Coverage terms

• Waiting period: a time after you sign up when some or all claims are not covered.
• Pre-existing condition: a problem your pet had or showed signs of before coverage began. These are usually excluded.
• Exclusion: something the policy does not cover. Read the full list.
• Wellness add-on: an optional extra for routine care, such as vaccines and checkups, usually at a higher premium.
• Bilateral condition clause: in some policies, a problem with one side of the body, such as one knee, can lead to the other side being treated as pre-existing.

How claims work

• Reimbursement basis: how the insurer decides what a service costs when it pays you. Ask how this is calculated.
• Claim: the request you send to be reimbursed. Many policies reimburse you after you pay the vet.
• Direct payment: in some cases the insurer pays the clinic, but it is not the norm. Check.

Always read the actual policy, not only the marketing page. If this site ever earns money from a link, it will say so clearly.

Frequently asked questions