Definition: A dollar amount that you pay first and then the insurance company uses the remaining amount of the claim to calculate what it pays. It can be calculated in a number of ways:
Per visit:The deductible applies every time you visit the vet. For example, if the deductible is $40 per visit, you cover the first $40 of every visit and any extra costs is what the insurance company will use to calculate its reimbursement to you.
Per annum: The deductible applies once only during the policy year (per annum being a fancy way of saying per year) . For example, if the deductible is $100 per annum and your pet needs to go to the vet multiple times in the year, you cover the first $100 of veterinary costs in the year and any extra after that is what the insurance company will use to calculate its reimbursement to you. When your policy renews, the deductible starts over.
Per incident:The deductible applies once only for a particular illness or condition. For example, if the deductible is $50 per incident and your pet breaks her leg and needs multiple visits to the vet, you cover the first $50 of veterinary costs for the accident and any extra on top of that during the year is what the insurance company will use to calculate its reimbursement to you. If your dog then eats a pine cone that gets stuck in her stomach, there is a new deductible.
What else do I need to know?
The deductible is important in setting your policy premium. For example, for the same deductible method (per visit, per annum, or per incident), the lower your deductible, the higher your premium. This is because if you have a low deductible (the bit you pay), the insurance company reimburses you more for the same veterinary costs, which translates into a higher premium.
When comparing deductible types, if the amount of your deductible is the same, then per visit deductible policies are less expensive than per incident deductible policies, which are less expensive than per annum deductibles. The more you pay out of your own pocket, the less expensive the premium is.
Comparing policies becomes more complicated when the deductible amount and type vary.
The deductible also keeps premiums down because it reduces the number of very small claims made, which reduces the policies expenses.
