What is a pet insurance deductible?

Imagine your dog jumps the fence and breaks his leg, leading to a $3,500 emergency surgery. Thankfully, you have pet insurance. But, before your provider covers their share, you’ll need to pay a portion yourself. That portion is called the deductible.

A pet insurance deductible is the amount you’re responsible for before your coverage kicks in. Think of it like a co-pay at the vet; it’s your financial contribution toward your pet’s care. The size of your deductible can significantly affect how much you pay monthly in premiums and how much you’ll get reimbursed later.

Understanding how deductibles work is key to choosing the right pet insurance plan, especially when you consider how many Canadians have pets. According to Made in CA, almost 80% of Canadian households own a pet, with over 28.5 million companion animals across the country as of 2025. With vet bills ranging from a few hundred dollars to up to $10,000 or more for emergencies, getting this detail right matters.

Why does a deductible matter in pet insurance?

A deductible is the amount you pay out of pocket each year before your insurance starts reimbursing you. Pet insurance deductibles in Canada can vary depending on the insurance provider. For instance, pet insurance provider Fetch BrokerLink’s official pet insurance partner offers a range between $200 and $2,500.

How it affects monthly premiums

Opting for a higher deductible generally means lower monthly premiums. However, that also means when your pet needs care, you’ll pay more upfront before your insurance provider covers the rest, up to your reimbursement percentage and coverage limit. With a lower deductible, you might face higher monthly premiums, but your out-of-pocket cost per incident falls, helping you avoid bigger payments during emergencies.

What are the different types of pet insurance deductibles in Canada?

Understanding the type of deductible you’re selecting is just as important as the amount. As we mentioned earlier, deductibles determine how much you’ll pay out of pocket before your pet insurance company starts reimbursing you, but they come in different forms depending on the provider. The two most common types are annual deductibles and per-incident (or lifetime condition) deductibles. A comparison of the two, with examples, follows:

Contact BrokerLink to learn more about your dog insurance and cat insurance deductible options.

How to choose the right pet insurance deductible for your pet

Choosing a deductible is one of the most important decisions you’ll make when buying pet insurance, as it directly affects both your monthly premium and how much you’ll owe out of pocket when your pet needs care. The goal is to strike a balance between affordability and financial protection.

Fetch offers deductibles ranging from $200 to $2,500, with $300 being a popular choice among their Canadian policyholders. But the ideal deductible isn’t about getting the lowest number; it’s about choosing an amount you could realistically cover without financial strain. When a higher deductible pays off vs. a lower one:

When to choose a lower deductible

Pets that visit the vet more often, either due to breed-specific health risks or age, may benefit from a lower deductible, especially if you would be unable to pay a higher deductible in the event of a claim. Choosing a lower deductible may cost you more monthly, but it can protect you from paying hundreds more all at once.

When to consider a higher deductible

If your pet is young, healthy, and emergency vet visits are rare, you may prefer a higher deductible to help keep your monthly pet insurance costs low. Just make sure you’re comfortable covering that amount in case of an unexpected emergency, especially since most policies, including Fetch, require you to pay the full bill upfront before being reimbursed.

If you're unsure what deductible amount is right for you, contact a BrokerLink insurance advisor. We can help walk you through your options and build you a pet insurance policy that's tailored to your pet’s age, breed, and lifestyle.

How does a pet insurance deductible work?

As you now know, your pet insurance deductible is the amount you’re responsible for paying before your insurer starts reimbursing eligible veterinary expenses. But let's break it down and give you a realistic example of an annual deductible to help you understand pet insurance deductibles even more:

First insurance claim

Say your dog, Luna, swallows a toy and needs emergency surgery. The total vet bill comes to $2,000. You’ve chosen a $500 annual deductible and a 90% reimbursement rate with your insurance provider. Here’s how it breaks down:

1. You pay your $500 deductible

2. That leaves $1,500 in remaining eligible expenses

3. Your insurer reimburses 80% of $1,500, which is $1,350

4. You’re responsible for the remaining 10%, which is $150

So, your total out-of-pocket cost is $650 ($500 deductible + $150 coinsurance). You pay your vet the full $2,000, and after you file your insurance claim with your provider, you’re reimbursed $1,350.

Second insurance claim

Now, let's say that four months later, Luna decides to try to hop over your backyard fence, and she breaks one of her back legs by landing wrong. According to Dogster, the average cost of broken leg surgery for a dog is between $2,000 and $5,000, plus additional costs.

Once the procedure and follow-up care are complete, you receive a new vet bill totalling $3,950 in eligible costs. Since you already met your $500 annual deductible earlier in the year, it doesn’t apply again. This time, your only cost is your 10% coinsurance. Here's how that looks:

• Your insurer reimburses 90% of $3,950, which is $3,555

• You’re responsible for the remaining 10%, or $395

Because you've already paid your deductible, your total out-of-pocket expense is only $395 instead of $895 ($395 coinsurance + $500 deductible).

Remember, instead of annual deductibles, some insurance companies in Canada offer lifetime deductibles, which apply separately for each new condition. That could mean paying more if your pet develops multiple unrelated health issues in a year.

When do pet insurance deductibles apply to insurance claims?

Pet insurance deductibles apply only when you file a pet insurance claim that’s approved for coverage. If the expense isn’t eligible, such as treatment for a pre-existing condition, your pet insurance provider will likely deny the claim, and your deductible won’t apply.

With Fetch, which uses an annual deductible, your deductible applies once per policy year. For example, the first time you file an approved claim in a given year, your deductible will be subtracted from your reimbursement. After that, any additional approved claims within that year are reimbursed based on your selected reimbursement rate. You won't need to meet the deductible again until your policy renews.

Other insurers may use a lifetime (per-condition or per-incident) deductible, which applies to each new illness or injury. In those cases, you’d pay the deductible only once per condition for as long as your pet needs treatment for it. If your pet develops a different condition later, a new deductible would apply for that new issue.

In all cases, once your claim is approved, the deductible amount is deducted from the total eligible pet-related expenses, and your insurer reimburses the rest based on the reimbursement percentage you selected.

Can I change my deductible amount later?

Yes, in most cases you can. With providers like Fetch, you can adjust your deductible when you renew your policy each year. So if you start with a lower deductible and later decide you want to lower your monthly premium, you can request to increase it, and vice versa. If you'd like to adjust your deductible amount, contact your local BrokerLink advisor or insurance provider to confirm the timing and process.

What happens if my pet insurance claim costs less than the deductible?

If your vet bill is lower than your deductible, your insurance won’t cover it because the deductible amount hasn’t been met yet. For example, if your deductible is $500 and your claim is for a $300 visit, you’ll pay the full $300 out of pocket. However, that $300 will likely count toward your deductible for the rest of the year, so your next claim could trigger reimbursement once the $500 threshold is met.

What’s a disappearing deductible?

A disappearing deductible is a type of deductible that gets smaller over time as long as you don’t file a claim. Each year you go claim-free, your deductible decreases by a set amount, sometimes by $50 or $100, depending on the insurer. It’s a reward for low usage and can eventually lower how much you pay before your coverage kicks in. Generally, this is not available for pet insurance.

Contact BrokerLink today

Do you still have questions about pet insurance deductibles? Reach out to BrokerLink. Our brokers can answer any questions you have, like what pet insurance covers and whether pet insurance is worth it. You can reach us by phone, email, or in person at any one of our locations throughout Canada.

You can also contact Fetch directly. They can explain all there is to know about their own pet insurance deductibles, including how they work, what your options are, and how to choose the right one for you and your pet. Learn more about Fetch pet insurance with BrokerLink today!

Get a pet insurance quote1-866-381-1946