The reimbursement rate is the percentage of covered veterinary costs your insurer pays after your deductible is applied.
It directly determines how much money you get back on every claim.
Most pet insurance plans offer three standard options:
- 70% reimbursement → you pay 30%
- 80% reimbursement → you pay 20%
- 90% reimbursement → you pay 10%
Choosing the right one is not about picking the highest or cheapest option. It is about balancing:
- Monthly premium
- Out-of-pocket cost during claims
How Reimbursement Actually Works
Every claim follows the same order:
- Deductible is applied
- Reimbursement percentage is applied
Example
- Vet bill: 1,500 dollars
- Deductible: 250 dollars
Remaining: 1,250 dollars
- 80% plan → you get 1,000 dollars
- 90% plan → you get 1,125 dollars
Your total cost
- 80% → you pay 500 dollars
- 90% → you pay 375 dollars
Difference: 125 dollars on a single claim
Why Reimbursement Rate Matters More on Big Claims
The bigger the claim, the more important your rate becomes.
Example: 10,000 dollar treatment
After deductible:
- 70% plan → you pay ~3,175
- 80% plan → you pay ~2,200
- 90% plan → you pay ~1,225
Key insight
- Difference between 70% and 90% = nearly 2,000 dollars
This is where higher reimbursement pays off.
The Real Trade-Off
Higher reimbursement means:
- Lower out-of-pocket costs
- Higher monthly premium
Lower reimbursement means:
- Lower premium
- Higher costs during claims
Simple way to think about it
- Pay more monthly → less stress later
- Pay less monthly → more financial risk later
When 70% Reimbursement Makes Sense
70% works best if your goal is basic protection.
Good fit if:
- You have emergency savings
- You can handle higher out-of-pocket costs
- You want the lowest premium possible
- Your pet is lower risk
Reality check
You are still protected from catastrophic costs, but:
- You will pay more during claims
When 90% Reimbursement Is Worth It
90% is best for maximum protection.
Good fit if:
- You want minimal out-of-pocket costs
- You own a high-risk breed
- You would pursue expensive treatments
- You have limited savings
Financial impact
On large claims:
- Savings can easily exceed years of higher premiums
Psychological benefit
- Less financial stress
- More confidence in treatment decisions
Why 80% Is the Most Common Choice
80% is the middle ground.
It offers:
- Strong coverage
- Lower premium than 90%
- Manageable out-of-pocket costs
Good fit if:
- You want balance
- You have moderate savings
- Your pet has average risk
How to Choose the Right Rate
Instead of guessing, use this simple method.
Step 1: Estimate a major claim
Pick a realistic scenario for your pet:
- Surgery
- Cancer treatment
- Emergency care
Step 2: Calculate your cost at each rate
Compare:
- 70% vs 80% vs 90%
Step 3: Compare premium differences
Ask:
- How much more do I pay per year for higher coverage?
Decision rule
Choose the higher rate if:
Extra reimbursement > extra premium over time
How Reimbursement Rate Affects Your Emergency Fund
Your rate determines how much cash you need available.
Example
15,000 dollar claim:
- 80% → you need ~3,000
- 90% → you need ~1,500
Insight
Higher reimbursement reduces:
- Financial pressure
- Required savings
Important Things to Know
Reimbursement does not affect coverage
It only changes how much is paid, not what is covered.
You can usually change it
- Changes typically allowed at renewal
- Not mid-policy
Switching insurers resets everything
Including:
- Waiting periods
- Pre-existing condition rules
Common Mistakes to Avoid
Choosing the cheapest option blindly
Lower premium can mean higher financial risk.
Ignoring large claim scenarios
Small claims do not show the real difference.
Underestimating future costs
Older pets often need more expensive care.
Not considering your savings
Your rate should match what you can afford out-of-pocket.
Frequently Asked Questions
Is 90% always better?
Not always. It depends on premium difference and your financial situation.
Does 70% still provide value?
Yes. It protects against catastrophic costs.
Can I change my rate later?
Usually yes, but only at renewal.
Is 100% reimbursement available?
Some insurers offer it, but premiums are much higher.
Which rate do most people choose?
80% is the most common because it balances cost and coverage.
Conclusion
Your reimbursement rate determines how much of your vet bill the insurer pays after your deductible.
- 70% → lower premium, higher out-of-pocket
- 80% → balanced option for most owners
- 90% → highest protection, lowest out-of-pocket
The best choice depends on:
- Your pet’s risk level
- Your financial situation
- Your comfort with large expenses
For most pet owners, 80% is the safest starting point, while 90% is worth it for high-risk pets or owners who want maximum protection.
The key is not choosing the cheapest option, but choosing the one that keeps you financially stable when a major claim happens.
Author
Maria Khan
Pet Insurance Researcher and Consumer Finance Writer
Maria has spent over three years analyzing pet insurance pricing structures, focusing on how reimbursement rates affect real-world costs. She evaluates policy designs, claim scenarios, and long-term financial outcomes to help pet owners choose coverage that actually works when needed.