How does pet insurance work?
Pet insurance is a health plan that helps pay for part of your pet’s medical bills, based on the coverage you select. While most pet insurance plans are for cats and dogs, you can find pet insurance for other animals, such as reptiles, birds, and rabbits.
When you purchase pet insurance, you’ll choose a deductible, reimbursement percentage, and annual limit. A deductible is an amount you have to pay before the provider kicks in and starts to reimburse you. Reimbursement percentage refers to the percentage of the bill your policy will pay after you meet your deductible, up to the annual limit. The annual limit is the total amount your policy will pay for all the claims you submit in a year.
All these factors will affect your premium and the maximum amount of money you can recover. Most pet insurance plans work on a reimbursement basis. This means you’ll pay your vet bills in full, file a claim, and receive your reimbursement from the insurance company via direct deposit or a paper check.
Pet insurance plans also have waiting periods, which refer to the amount of time before your pet can receive coverage. 
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Who needs pet insurance?
Whether you need pet insurance depends on your unique situation. It’s a good idea to compare the amount you spend on caring for your pet each year to the premiums you might pay. If pet insurance costs are cheaper than what you typically spend on pet healthcare, pet insurance may be worth the investment.
Also, if you have a breed that’s prone to certain health conditions, like hip dysplasia, for example, you may go to the vet more often and can save some money with pet insurance. If you have an existing relationship with a vet, you may want to speak to them about costs for certain routine and emergency procedures. Then, get some quotes from at least a few pet insurance companies to help you decide if a policy is a good idea.
You might not need pet insurance if you have a fairly healthy, low-maintenance pet that doesn’t require a lot of vet visits. This is particularly true if you can afford to pay the vet bills out of pocket.
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