How Pet Insurance Deductibles Work: Annual vs Per-Incident

By PawPriced Editorial · 2026-02-20 · education

Understanding deductibles is key to choosing the right pet insurance plan. The deductible is the amount you pay out-of-pocket before insurance kicks in.

Annual Deductibles

Most providers (Lemonade, Embrace, ASPCA, Pets Best) use annual deductibles. You pay the deductible once per policy year, then insurance covers the rest according to your reimbursement rate. Common options: $100, $250, $500.

Per-Incident Deductibles

Trupanion uses a per-condition, lifetime deductible. You pay the deductible once for each new condition, then it's covered for life at 90% reimbursement.

Which Is Better?

Annual deductibles are better if your pet has one major issue per year. Per-incident deductibles are better for pets with chronic conditions that span multiple years.

How Deductible Affects Price

Choosing a $500 deductible over $100 can reduce your monthly premium by 20-40%. Consider what you can afford out-of-pocket in an emergency.

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