How to choose pet insurance

1. Reimbursement rate

This is the share of an eligible vet bill the insurer pays back after your deductible. Most providers offer 70%, 80% or 90%. A higher rate means a higher monthly premium, but less out of pocket when something happens.

Example: on a $2,000 eligible bill with your deductible already met, 80% reimbursement pays back $1,600 and you cover $400.

2. Annual deductible

The amount you pay yourself each policy year before reimbursement starts. Options range from as low as $50 to $2,500 depending on the provider. Raising the deductible is the fastest way to lower your premium. Choose an amount you could pay without stress.

Some providers reward healthy years. Embrace, for example, lowers your deductible by $50 for each year without a paid claim.

3. Annual limit

The most the insurer will pay in one policy year. Limits typically range from a few thousand dollars to unlimited. Serious illnesses, surgeries and cancer treatment can exceed lower limits, so consider at least a mid-range limit for a young or large-breed dog.

4. Waiting periods

Coverage doesn't start the day you buy. Typical waits are a few days for accidents and around two weeks for illnesses. Orthopedic problems, such as knee ligament injuries in dogs, often carry a six-month wait. Some providers shorten that wait if a vet examines your pet early on.

Anything that starts during a waiting period is usually treated as pre-existing and excluded for good. That's the main reason to enroll while your pet is young and healthy.

What usually isn't covered

• Pre-existing conditions (some providers make exceptions for curable conditions that haven't recurred)
• Routine care such as vaccines and annual check-ups, unless you add a wellness plan
• Cosmetic or elective procedures

Quick checklist

• Is my pet within the provider's age limits?
• Which deductible could I comfortably pay tomorrow?
• Is the annual limit high enough for a major surgery?
• Are exam fees covered, or charged separately?
• What are the waiting periods in my state?