Annual Deductible

An annual deductible is the fixed amount you pay in vet costs each policy year before your insurance company starts paying. Once you’ve hit your deductible for that year, your insurer covers the agreed reimbursement percentage (typically 70%, 80%, or 90%) of eligible costs above it.

How it works in practice

Say your cat has a $500 annual deductible and a 90% reimbursement rate. Your cat develops urinary blockage — a $2,000 emergency surgery. You pay the first $500 (the deductible). The remaining $1,500 is split: your insurer pays 90% ($1,350), you pay 10% ($150). Total out-of-pocket: $650.

The following year, your deductible resets to $500. Any new claims start from zero.

Annual deductible vs per-condition deductible

Most US cat insurance carriers use an annual deductible. Trupanion uses a per-condition deductible — paid once per condition, ever. The difference is material for cats with chronic conditions.

Choosing your deductible amount

Most carriers let you choose your deductible at enrollment — typically $100 to $1,000. Higher deductible = lower monthly premium. The right choice depends on:

• Your emergency fund: If you have $1,000 cash available, a $500–$1,000 deductible can significantly reduce premiums
• Your cat’s risk profile: Kittens and young healthy indoor cats have a lower claim frequency; a higher deductible may cost less over time
• Chronic condition risk: If your breed has hereditary risks or your cat is older, a lower deductible may pay off within a few years

Typical deductible ranges (2026)

A lower deductible is almost always better value for cats with active chronic conditions. A higher deductible reduces your premium cost for young, healthy cats with low expected claim frequency.