Pet Insurance Reimbursement Rates: 70%, 80%, or 90%?
Your pet insurance reimbursement rate — the percentage of eligible costs the insurer pays after your deductible — is one of the most important decisions in your policy configuration. The choice between 70%, 80%, and 90% reimbursement affects both your monthly premium and your out-of-pocket cost for every claim. Here is how to choose wisely.
How Reimbursement Rates Work
Once your annual deductible is met, the reimbursement rate determines what percentage of covered eligible expenses the insurer pays. At 80% reimbursement: a $2,000 covered vet bill (after your $300 deductible has already been met) generates an $1,600 payout — you pay $400 out of pocket. At 90%: the same $2,000 bill generates a $1,800 payout — you pay $200 out of pocket. The difference in premium between 80% and 90% is typically $8–$15/month.
Cost Comparison at Different Reimbursement Rates
| Covered Bill (deductible already met) | 70% Payout | 80% Payout | 90% Payout |
|---|---|---|---|
| $500 | $350 (you pay $150) | $400 (you pay $100) | $450 (you pay $50) |
| $1,500 | $1,050 (you pay $450) | $1,200 (you pay $300) | $1,350 (you pay $150) |
| $3,000 | $2,100 (you pay $900) | $2,400 (you pay $600) | $2,700 (you pay $300) |
| $8,000 | $5,600 (you pay $2,400) | $6,400 (you pay $1,600) | $7,200 (you pay $800) |
| $15,000 | $10,500 (you pay $4,500) | $12,000 (you pay $3,000) | $13,500 (you pay $1,500) |
| Annual premium difference (approx) | +$0/mo (baseline) | ~$8–$15/mo more | ~$18–$28/mo more |
Which Rate Is Best for Your Situation?
70% reimbursement makes sense if you have substantial savings and want the lowest possible monthly premium. You're effectively self-insuring 30% of all eligible costs, which is manageable for most households with $2,000–$3,000 in reserve. The premium savings of $18–$28/month over the 90% option add up to $216–$336/year — meaningful over a decade.
80% reimbursement is the most popular choice and the sweet spot for most pet owners. It provides strong coverage for large bills while keeping premiums manageable. For a $5,000 emergency, 80% coverage means $1,040 out of pocket vs $540 at 90% — a difference that most families can absorb without financial stress.
Changing Your Reimbursement Rate
Most insurers allow you to adjust your reimbursement rate at annual renewal. This means you can start at 80% when your pet is young and healthy, then switch to 90% when your pet enters higher-risk years (age 5–7 for most breeds). This strategy saves money early while ensuring maximum coverage when you're most likely to need it. Note: some insurers treat a reimbursement rate change as a new enrollment, potentially re-evaluating pre-existing conditions. Confirm your insurer's policy before making changes.
Frequently Asked Questions
Is 90% pet insurance reimbursement worth the extra cost?
For high-risk breeds and senior pets, 90% reimbursement is worth the premium difference. For young, healthy, low-risk pets, 80% reimbursement provides strong coverage at lower cost. Calculate the annual premium difference ($180–$336/year) against your expected claims to decide.
What does 80% reimbursement actually mean?
After your deductible is met, the insurer pays 80% of eligible covered expenses. You pay the remaining 20% plus your deductible. Example: $3,000 eligible bill, $300 annual deductible already met, 80% reimbursement = $2,400 paid by insurer, $600 paid by you.
Can I choose different reimbursement rates for different pets?
Yes. If you have multiple pets insured, you can choose different reimbursement rates for each. Consider higher rates for older or higher-risk pets and standard rates for young healthy pets to optimize household insurance spending.