What is an annual deductible?

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A deductible is the amount that you're responsible for, before your insurance coverage applies. It's deducted right off the top, before the insurance company pays on a claim. You're probably familiar with deductibles from other types of insurance (health insurance, car insurance, etc.). If your policy has an annual deductible, it gets applied over the course of the year. How it works: let's say your dog eats a bag of Hershey's chocolates and the vet bill for that is $600. If your policy has a $300 annual deductible, then $300 would be deducted off the top (that you pay), and the insurance company would reimburse on the remainder of the bill. Let's say a month later, your dog gets bitten at the dog park (poor dog!) and requires stitches at the vet. The vet bill for that costs $500. This time, there's no amount deducted off the top. That's because you already met the $300 annual deductible on the Hershey's incident. There would be no more deductibles on any incident for the rest of the year.