What about exclusions, deductibles, and co-pays?

Virtually all insurance policies have deductibles, which are set amounts of money that are “deducted” from the insurance reimbursement. Some policies have deductibles that apply per incident, while others might have an annual deductible, so that once that amount is reached, further deductibles won’t apply for the remainder of the term. Deductibles are meant to keep premiums affordable, by ensuring that pet owners have some stake in the process.

On the other hand, co-pays reflect the relative proportion of the covered amount to be paid for by the insurance company and the pet owner. For example, while there are a variety of possible co-pays, depending on what pet owners would like the premium to be, a typical co-pay may be that the insurance company will reimburse 90% (or 80% or 70%) of the covered amount, after the deductible, while the pet owner will be responsible for the remaining 10% (or 20% or 30%). If owners are prepared for higher co-pays, they will likely see slightly lower premiums, but they will be paying for a higher percentage of their pet’s care. Most policies reimburse on the basis of the veterinarian’s invoice for services provided, but some still reimburse on the basis of a benefit schedule, a catalog of fees for specific services. Policies that pay on the basis of the veterinarian’s invoice make it easier for pet owners to predict what their final reimbursement will be. In addition, most insurance policies do not cover items that are considered non-medical, such as tax, grooming, boarding, waste fees, etc.