Pet Insurance: What is it & How Does it Work?

Pet insurance is a form of insurance that is often overlooked by pet owners, but it can help save you from unexpected costs, whether in emergencies or, for an added cost, routine visits for your cat or dog. Pet Insurance is a health care policy for your pet that will provide payment or reimbursement for specific health expenses that are covered by the policy. While pet insurance can help protect your finances, not all pet insurance policies are created equal — you must understand what is covered before choosing a policy for your pet. Two common types of pet insurance are dog insurance and cat insurance.

What is pet insurance?

Pet insurance is health insurance that pays a portion of your pet's medical bills based on your coverage. No one plans to be injured or sick and neither do cats or dogs. As illness or broken bones can be painful, it never hurts to prepare for the unexpected when it comes to your pets. While the love of your cats or dogs is priceless, veterinarian visits are not. Pet insurance can help make these bills more manageable.

Get your free pet insurance quote today.

Do I need pet insurance?

Pets are a part of your family. Like every family member, they may get sick or injured. One in three pets will need emergency medical treatment throughout their lifetime, and most Americans can’t afford unexpected veterinary bills. However, just because cats have nine lives doesn't mean you should have to work like a dog to pay the vet bills. That's where pet insurance comes in.

How does pet insurance work?

With pet insurance, you pay a monthly or annual premium, and in return, the insurance covers a portion of your pet's medical expenses. Most policies work on a reimbursement basis, meaning you’ll pay your veterinarian upfront and submit a claim to your insurer to be reimbursed.

When purchasing pet insurance, you’ll select a deductible, reimbursement rate, and annual limit. Understanding these elements is crucial because they directly affect how much you'll pay for veterinary care and how much your policy will cost. It’s important to note that some insurers will not allow you to change these limits after purchase until your renewal period (one year after the policy start date).

Deductible

A deductible is the amount you must pay out-of-pocket for your pet's medical expenses before your insurance coverage begins to reimburse you. Deductibles can be applied annually, meaning you pay it once per policy year, or per incident, which requires you to pay a deductible for each new medical condition or treatment. This amount is predetermined in your insurance policy, can vary based on the plan you choose, and resets every policy year.

For instance, if your first covered claim is $500 and you’ve chosen a yearly deductible of $250, you will be responsible for paying $250 of your vet bill plus the remaining percentage not reimbursed (depending on your chosen reimbursement rate). If your policy has a yearly deductible, you will not have to pay this amount again until your policy renews.

Reimbursement Rates

A reimbursement rate is the percentage of your veterinary bill that your insurance company will pay after you've met your deductible. A higher reimbursement rate generally means higher premiums, but it also means you'll get more back from your insurer for each vet bill. Most pet insurers allow you to choose from set percentages ranging between 70% and 100%.

For example, if you have met your deductible and submit a covered claim totaling $100 and your policy’s reimbursement rate is set at 80%, you’ll be reimbursed $80. You are responsible for the remaining 20%.

Annual limits

An annual limit is the maximum amount of money the insurance company will pay out for covered veterinary expenses within a policy year. Once this limit is reached, you are responsible for any additional costs for the remainder of the year. These limits can vary widely depending on the policy, ranging from a few thousand dollars to unlimited coverage.

For instance, if your pet insurance policy’s annual limit is $5,000, you haven’t used it yet, and your pet needs a $7,000 surgery, your insurer will only reimburse you up to $5,000 at the percentage amount you chose after you’ve met your deductible. Once you’ve reached that $5,000 limit, your policy will not reimburse you further until renewal.

Claims process

GEICO’s pet insurance claims process is simple:

Visit the Veterinarian: Take your pet to a licensed vet for treatment and pay for the services upfront.

Collect Documentation: Obtain an itemized receipt or invoice from the vet detailing the services provided and the costs.

Submit a Claim: 

Claim Review: We’ll review your claim to determine if the expenses are covered under your policy.

Reimbursement: If approved, we’ll reimburse you for the eligible expenses based on your policy's reimbursement rate after any applicable deductible has been met. If your deductible has not yet been met, we’ll apply the reimbursement amount toward it.

What does pet insurance cover?

Embrace Pet Insurance has teamed up with the GEICO Insurance Agency to help make pet insurance easy. That means a plan that is simple, comprehensive, and allows you to use any licensed veterinarian you choose.

Build a pet insurance plan that's specific to your needs

Choose your payout limit, deductible, and reimbursement percentage while your pet enjoys coverage for:

• Breed-specific conditions
• Cancer treatment
• Diagnostic testing and imaging (e.g. X-ray, Ultrasound, MRI)
• Surgery, hospitalization, and nursing care
• Therapies and rehabilitation
• ER and specialist care
• Prescription drug coverage (optional)

How much does pet insurance cost?

The GEICO Insurance Agency can help you get a customizable plan to fit your budget without sacrificing coverage. Along with the deductible, percent of reimbursement, and payout limit reimbursement you choose, pricing is based on your location, and your pet's species, breed, sex, and age.

Get your free pet insurance quote to see how affordable it is.

Will my pet be covered for life?

Yes. If your pet is eligible for accident and illness coverage when enrolling, then that level of coverage will continue as long as your pet remains insured.

What is not covered by pet insurance?

Some exclusions include pre-existing conditions, routine care costs, and more depending on your pet's insurance policy.

For more information on exclusions:

Call (800) 793-2003 to speak to an Embrace agent.