How pet insurance works: Deductibles, payouts, waiting periods and more

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November 12, 2026 / 8:35 AM EST / CBS News

Pet insurance works much like human health insurance. You'll pay a premium for coverage, and there may be deductibles, reimbursements, payout limits, waiting periods, and more — all of which can affect your coverage and out-of-pocket costs.

More than 7 million dogs and cats were covered by pet insurance in 2025, according to the North American Pet Health Insurance Association (NAPHIA). Are you considering insurance for your pet, too? Before getting started, it helps to know the ins and outs of this unique insurance type. Below, we'll explain how pet insurance actually works and what you need to know before buying in.

Start by getting a free pet insurance price quote online today.

Pet insurance policies can have annual deductibles or per-incident deductibles, which you'll pay each time you make a claim. Deductibles can range from $0 up to a few thousand dollars, depending on your insurance provider, the plan you choose. The lower your deductible is, the higher your premium will usually be.

Here's an example of how deductibles…

Original source: https://www.cbsnews.com/moneywatch/