A Guide to Annual Limits for Pet Insurance

You want your pet to get the best care possible when they’re sick or hurt, and pet insurance can be a helpful tool when paying veterinary bills. But when choosing a policy, it’s important to understand the annual limit — or the maximum amount you can be reimbursed for covered costs within a year.

Learn more about annual limits on pet insurance policies, how to pick the right one for you, and what MetLife Pet offers. 

What Is a Pet Insurance Annual Limit?

The annual limit for pet insurance is the most your pet insurance provider will pay for covered healthcare costs in a policy year, after you’ve met your deductible. If you receive a vet bill after you’ve already hit the annual limit for your policy year, those expenses likely won’t be covered. (Paying your deductible doesn’t count against your annual limit.)

At MetLife Pet, we offer fully customizable dog insurance and cat insurance plans. You can choose an annual limit from $500 – $25,000 in $1,000 increments or go with an unlimited benefit. You can also enroll multiple pets in one policy with a shared annual limit and deductible.¹

What are per-incident limits?

Some pet insurers place caps on treatment for a specific injury or illness, known as per-incident limits. For example, if the per-incident limit for a cruciate ligament injury is $5,000, once that cap is reached, you’ll be responsible for any additional costs related to it until your policy period resets.

MetLife Pet has no per-incident limits — you can be reimbursed on covered costs up to your annual limit.¹ This can help you stress less if your pet develops a chronic condition or needs to be treated multiple times for the same injury.

How Do Pet Insurance Annual Limits Work?

When you enroll in a customizable pet insurance plan, you may be able to select your annual limit, as well as your reimbursement rate and deductible amount. These choices will impact how much your policy costs and what your monthly payment will be. They’ll also influence how much you get reimbursed for covered costs. Let’s look at how these choices work together.

Your annual limit caps how much you can be reimbursed in a policy year. At MetLife Pet, the options range from $500 – $25,000 in $1,000 increments.¹

Your reimbursement rate is the percentage of covered veterinary expenses you can be reimbursed for after you’ve met your deductible. MetLife Pet’s reimbursement options are 50%, 70%, 80%, and 90%.¹

A pet insurance deductible is the out-of-pocket amount you have to pay before vet bills can be covered by your pet insurance policy. MetLife Pet’s deductible options range from $0 – $750 in $50 increments. We also offer $1,000, $1,250, $1,500, $2,000, and $2,500 deductible options.¹

First, you pay your deductible. Then, your pet insurance provider can reimburse you for covered expenses according to your reimbursement rate up to your annual limit.

Annual limit example

To help you see how this all works, let’s look at an example. Say your dog needs an $8,000 surgery to remove cancerous tumors, and your MetLife Pet Insurance policy has an annual limit of $10,000, a reimbursement rate of 80%, and a $500 deductible.¹

After subtracting your $500 deductible, you’re left with $7,500 that can be reimbursed. Your policy’s reimbursement rate is 80%, and all expenses are eligible for coverage, so you could be reimbursed $6,000 of the $7,500. Since this amount is below your $10,000 annual limit, you’d be paid out the full $6,000 and still have $4,000 left for future reimbursements within that year.¹

Here’s what that looks like step by step.

1. Pay your deductible: $8,000 − $500 = $7,500
2. Apply your reimbursement rate to the remaining amount: 80% of $7,500 = $6,000
3. Subtract the reimbursed amount from your annual limit: $10,000 - $6,000 = $4,000

How To Choose the Right Annual Limit

Choosing a good annual limit for pet insurance coverage depends on a number of factors — some related to your finances, and some to your pet. Here are a few considerations when deciding which annual limit is best:

• Your budget: Consider an annual limit that allows for a monthly premium that fits into your budget — the higher the limit, the higher the insurance premium.
• Your pet’s age: As your pet gets older, they may be more likely to develop health issues, like cancer, cataracts, and joint problems. A higher annual limit could help you cover more costly future expenses.
• Your pet’s breed: Some breeds are more prone to certain health conditions and risks — and may need more veterinary care as a result. An annual limit that reflects your pet’s potential need for future vet visits could be beneficial.

Ultimately, the right annual limit is one that covers your pet’s unique health care needs and results in a monthly premium that meets your budget.

High-Limit vs. Standard Pet Insurance

High-limit pet insurance refers to plans that offer larger annual payouts than standard plans that might have set or limited annual limits. Keep in mind that a higher annual limit also means a higher monthly premium, but this may be worth it for you. Especially if it means you might be able to get more reimbursements on covered costs for vet bills that keep stacking up.

If you find yourself wanting to shop around for pet insurance with a higher limit due to potential health considerations, remember that pre-existing conditions typically aren’t covered by providers. Our policies, however, may provide coverage for pre-existing conditions that were previously covered when group policyholders switch to MetLife Pet.²

MetLife Pet Has Coverage Options To Fit Your Needs

It can take some time to find the right balance between ensuring your furry family member’s health is covered and sticking to what you can comfortably pay for pet insurance. With unexpected pet healthcare expenses that can happen anytime, MetLife Pet Insurance could help you avoid the choice between your pet’s well-being and your finances.

Our plans are flexible — with a variety of annual limit options — so you can tailor your pet insurance plan to your pet’s needs and your budget.¹ Interested in seeing your custom policy price? Get a free quote today to find the right annual limit and coverage for your pet.¹