Is a low deductible or a high reimbursement rate better?

It depends on how often costs arise, but on large bills the reimbursement rate weighs more than the deductible. A deductible is subtracted only once, whereas percentage co insurance grows with the size of the bill. On a big cost, ten extra percentage points of reimbursement are often worth far more than a smaller deductible. The right way to decide is to run the same bill under both assumptions and compare the result.

What happens if I reach the limit halfway through the year?

Once the limit is exhausted, for the rest of the year costs fall entirely on you, even though the policy is active and you keep paying the premium. This is the biggest risk for animals with chronic disease, where bills recur. That is why the limit, and above all any sub limit per individual condition, should be looked at before the premium: it decides how covered you really are in the worst year.

Are the deductible and co insurance the same thing?

No, and confusing them leads you to overestimate the refund. The deductible is a fixed amount removed once from the eligible cost. Co insurance is a percentage you keep on every bill, so it grows with the amount. Some policies apply both: first they subtract the deductible, then they leave you a percentage share of the rest. Always read the terms to see which of the two, or both, apply.

Is the refund calculated on the bill or on the insurer's fee schedule?

Some policies refund a percentage of the real documented cost, others apply the percentage to their own internal fee schedule, which can be lower than the amount actually paid. In the second case the apparent refund shrinks, because the calculation base is smaller. It is a detail often buried in the terms: ask about it explicitly and, if you can, have them show an example on a sample bill.

Costs and insurance9 min readUpdated on August 18, 2026

Deductible, limit and reimbursement rate: understanding what actually comes back to you

Three parameters decide how much a pet policy really pays back: deductible, limit and reimbursement rate. Here is how they combine, with concrete worked examples.

Audience: Pet owners
Species: Dog, Cat
Scope: Valid everywhere, European Union, Italy

When people compare health policies for dogs and cats, attention almost always goes to the monthly premium, that is to how much you pay. That is the wrong thing to look at first. What decides whether a policy will really help you when it matters are three parameters that act together on the amount paid back to you: the deductible, meaning the share you keep, the limit, meaning the ceiling beyond which the insurer stops paying, and the reimbursement rate, meaning how much of the eligible cost is covered. Taken one at a time they look like technical detail. Combined, they can turn a thousand euro bill into a generous refund or into a few dozen euros. The trouble is that insurers mix them in different ways, and a policy with a lower premium can pay back far less than one that costs a little more. This page explains how to read all three at once and how to do the maths before you sign, not after the refund arrives.

The three parameters and what each one does

Before combining them it helps to keep them apart, because they act on different points of the calculation. The deductible removes a slice from the bottom, the rate reduces what remains, the limit cuts from the top. The order in which the insurer applies them changes the final result.

What each parameter does and how it is written
Parameter	What it does	How you find it stated
Deductible	The part of the cost you keep before the insurer steps in	Fixed amount per claim or per year, or a percentage of the bill
Reimbursement rate	The share of the eligible cost that is covered	Often 70, 80 or 90 per cent of the cost after the deductible
Limit	The ceiling beyond which nothing more is paid back	Per claim, per condition, per year or combined
Sub limits	Lower ceilings that apply only to certain items	For example a dedicated cap on physiotherapy or prosthetics

Beware two words that look like synonyms but are not. A fixed deductible is an amount subtracted once, while co insurance is a percentage you keep on every bill. Some policies apply both, and in that case the amount you pay grows with the size of the bill. Reading only one of the two leads you to overestimate the refund.

How they combine: the order of the calculation

The refund is never simply a percentage of the bill. In most contracts the calculation follows a precise sequence: first the deductible is removed from the eligible cost, then the reimbursement rate is applied to what remains, finally the result is checked against the limit or any sub limit. Getting the order wrong is why many people expect more than they receive.

Start from the eligible cost
Not all of the bill is eligible: some items may be excluded. Consider only the amount the policy recognises as covered.
Subtract the deductible
Remove the fixed amount or the percentage share set as the deductible. If it is annual and you have already used it, this step does not apply again.
Apply the reimbursement rate
On the remaining figure calculate the covered percentage. The gap up to one hundred per cent is the co insurance you keep.
Compare with the limit
Check that the refund does not exceed the annual, per claim or per condition ceiling, nor a sub limit dedicated to that specific item.
Read the remaining limit
Subtract the refund from the available limit to see how much is left for the rest of the year, especially if the animal has a chronic condition.

Worked examples on the same bill

The most honest way to compare two policies is to run the same bill through both. Take an eligible cost of 1,000 euros and see how the refund changes as the three parameters vary.

Refund on an eligible cost of 1,000 euros
Deductible	Reimbursement rate	Limit sufficient	You get back	You keep
100 euros	80 per cent	Yes	720 euros	280 euros
0 euros	70 per cent	Yes	700 euros	300 euros
50 euros	90 per cent	Yes	855 euros	145 euros
100 euros	80 per cent	Limit at 500 euros	500 euros	500 euros
200 euros	80 per cent	Yes	640 euros	360 euros

Two things stand out. First, a high rate with a low deductible almost always beats a zero deductible policy that has a reduced rate. Second, a low limit wipes out every advantage: in the fourth row the policy with parameters identical to the first pays back far less because the ceiling kicks in first. A cheap premium with a small limit is often a promise that switches off exactly when the cost turns serious.

The low premium that costs more

A modest monthly premium almost always hides one or more of these mechanisms: a high deductible, a low reimbursement rate, a small limit, many sub limits. There is nothing improper about it, it is how the insurer reduces its exposure. The point is that the saving on the premium turns into spending when you need the refund.

A per claim deductible instead of an annual one: across several episodes in the same year you pay it each time, and the total you keep mounts quickly.
A rate that drops with the animal's age: some policies cut cover just as costs rise.
A limit that shrinks after the first claim or after a diagnosis: the ceiling available for the rest of the year can collapse.
Sub limits on costly items like surgery, diagnostic imaging or oncology, where the bill is high and cover stops early.
A refund calculated on an internal fee schedule lower than the real cost, so the rate applies to a reduced base.

The correct comparison is not between two premiums, but between two expected refunds on the same spending scenario. A policy that costs a few euros more a month but pays back hundreds of euros more on a serious bill is almost always the rational choice. Recording your real vet spending from previous years helps you build the right scenario to run the numbers on.

How to compare two policies in practice

To avoid being led by the premium, it helps to reduce the comparison to a few numbers built on the same basis. Here is a method anyone can apply with pen and paper or a simple spreadsheet.

Choose two realistic spending scenarios
One light, such as gastroenteritis resolved in a few days, and one heavy, such as a chronic condition managed for a year with recurring checks.
Run the same scenario through both policies
Apply each one's deductible, rate, limit and sub limits to the same amount, following the correct order of calculation.
Add the annual premium to what you keep
The real cost of a policy is the year's premium plus the part not refunded. Compare that sum, not the premium alone.
Check waiting periods and exclusions
A great theoretical refund is worthless if the item you need is excluded or subject to a long waiting period.
Reassess at every renewal
Premium, limit and rate can change at renewal or with the animal's age: redo the maths rather than assuming last year's cover still holds.

Frequently asked questions

Is a low deductible or a high reimbursement rate better?: It depends on how often costs arise, but on large bills the reimbursement rate weighs more than the deductible. A deductible is subtracted only once, whereas percentage co insurance grows with the size of the bill. On a big cost, ten extra percentage points of reimbursement are often worth far more than a smaller deductible. The right way to decide is to run the same bill under both assumptions and compare the result.
What happens if I reach the limit halfway through the year?: Once the limit is exhausted, for the rest of the year costs fall entirely on you, even though the policy is active and you keep paying the premium. This is the biggest risk for animals with chronic disease, where bills recur. That is why the limit, and above all any sub limit per individual condition, should be looked at before the premium: it decides how covered you really are in the worst year.
Are the deductible and co insurance the same thing?: No, and confusing them leads you to overestimate the refund. The deductible is a fixed amount removed once from the eligible cost. Co insurance is a percentage you keep on every bill, so it grows with the amount. Some policies apply both: first they subtract the deductible, then they leave you a percentage share of the rest. Always read the terms to see which of the two, or both, apply.
Is the refund calculated on the bill or on the insurer's fee schedule?: Some policies refund a percentage of the real documented cost, others apply the percentage to their own internal fee schedule, which can be lower than the amount actually paid. In the second case the apparent refund shrinks, because the calculation base is smaller. It is a detail often buried in the terms: ask about it explicitly and, if you can, have them show an example on a sample bill.

What to do next

Do not choose a pet policy by its premium: look at the deductible, the reimbursement rate and the limit together, because they are what decide how much really comes back to you. Remember the order of the calculation, subtract the deductible, apply the rate, then check the ceiling and any sub limits. Run the same 1,000 euro bill through every policy, check the per condition sub limit if you fear a chronic disease, and compare the sum of the annual premium plus what you keep, not the monthly cost alone.

Deductible, limit and reimbursement rate: understanding what actually comes back to you

The three parameters and what each one does

How they combine: the order of the calculation

Worked examples on the same bill

The low premium that costs more

How to compare two policies in practice

Frequently asked questions

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