My pet insurance policy mentions a "reimbursement rate." What is that?


The reimbursement rate is the percentage rate at which the insurance company covers eligible expenses (after the deductible is applied). Most pet insurance policies have reimbursement rates that range from 70-90%. Higher reimbursement rates will cost you more in terms of monthly premium (just like low deductibles do). Here's an example of how it works if you have a policy with a $500 deductible and an 80% reimbursement rate:

$3,000 total claim submitted for reimbursement

- $500 deductible you're responsible for

= $2,500 eligible expense for reimbursement

× 80% reimbursement rate

= $2,000 reimbursement to you

A word of caution here: some pet insurance companies reimburse based on a fixed schedule of costs (you may see it referred to as the "usual and customary charges for the treatment"), rather than the actual vet bill you submit. We don't recommend that type of pet insurance policy; you'll be better off on reimbursements when they're based on your actual vet bills.