The pet insurance deductible can be confusing, especially for first-time parents. In this article, I, Ivana Crnec, DVM, will explain what a pet insurance deductible is and how it affects the budget.
Stop Googling - Ask a Real Vet
Content:
- What Is a Deductible in Pet Insurance
- Annual Deductible Pet Insurance
- Is Pet Insurance Tax Deductible
- Are Vet Bills Tax Deductible
- Conclusion
What Is a Deductible in Pet Insurance
A deductible in pet insurance is the money you pay on your own before the pet insurance policy kicks in, and you can start making claims for eligible services. Studies suggest that “deductibles are a predominant feature of insurance contracts.”
The lower the deductible, the less you pay out-of-pocket. However, a low annual deductible means a higher monthly premium (the fee you pay monthly/yearly to keep the policy active).
“Typical deductibles range from $0 to $1000, but averages are typically closer to $100, $250, or $500,” says Sandra C. Mitchell, DVM, in an article for PetMD.
Let's use an example to simplify the concept. Imagine you have a pet insurance policy with an annual deductible of $200 - it means you pay on your own for the first $200 worth of vet bills in the current year.
This is regardless of whether you go to the vet’s office four times and spend $50 box per visit or once and spend the entire sum for one service.
The Petcube Emergency Fund does not have a deductible because it is not a typical insurance policy. It is a universal coverage that gives $3,000 for emergency vet bills and unlimited access to online vets. The fund is available at a 27% discount if you use this link.
Annual Deductible Pet Insurance
Most pet insurance companies work on an annual deductible basis instead of a per-claim basis. The annual deductible refers to the amount of money you have to spend out of your pocket yearly before the pet insurance provider chips in and starts reimbursing.
Some pet insurance providers allow changing the annual deductible. However, this will change your monthly premium. For example, if you want a lower deductible, your monthly premium will increase.
Read more: Pet Insurance that Pays the Vet Directly
Is Pet Insurance Tax Deductible
Yes, pet insurance is tax deductible, but only in certain situations. Tax deductions apply only for service and emotional support animals and working dogs.
“If you have some kind of documentation to back up that claim, you should be able to deduct,” says a Reddit user.
However, just to be safe, always consult an accountant before claiming your dog or cat for deduction purposes.
The Petcube Emergency Fund is an excellent option for service pets, emotional support dogs, and working animals.
Read more: Pet Insurance for Older Pets: What You Need to Know
Are Vet Bills Tax Deductible
Yes, vet bills are deductible, but, once again, only under specific circumstances. You may be eligible to claim tax deductions on veterinary bills for emotional support animals, service pets, and working dogs.
Studies show that “the monetary aspects of veterinary care pose barriers and challenges for veterinarians and pet parents.”
Being able to overcome those barriers is a great financial benefit.
Read more: Pet Life Insurance Policies: Are They Worth It?
Conclusion
The annual deductible is the money you pay out-of-pocket before the insurance chips in and starts covering veterinary services. If you want a policy with a lower deductible, you need to pay higher monthly/annual premiums.