✍️ PeaceCover Editorial Team 📅 September 2026 ⏱️ 6 min read
📌 Key Takeaway: Your payout is (claimed amount − excess) × reimbursement rate — check whether the excess applies per-claim, per-condition or annually, since that structure matters as much as the number itself.

Pet Insurance Excess and Reimbursement, Explained

Two numbers determine your actual payout on any pet insurance claim far more than the headline annual limit does: the excess (what you pay first) and the reimbursement percentage (what portion of the remainder the insurer pays).

How the Calculation Works

Payout = (Claimed amount − Excess) × Reimbursement rate.

For example, on a $2,000 claim with a $200 excess and an 80% reimbursement rate: ($2,000 − $200) × 80% = $1,440 paid, leaving you to cover $560 out of pocket.

Excess StructureHow It Works
Per-condition excessApplied once per condition per policy year — repeat vet visits for the same ongoing issue don't trigger the excess again within that year
Per-claim excessApplied to every individual claim submitted, even for the same condition
Annual excessA single excess amount applies across the whole policy year regardless of how many conditions are claimed

Choosing Your Excess and Reimbursement Level

A higher excess and/or lower reimbursement percentage lowers your premium, which can make sense if you're comfortable self-funding smaller claims and mainly want protection against a large, unexpected bill. Conversely, a low excess and high reimbursement rate (80–85%) costs more upfront but minimises your exposure on every claim — better suited to owners who want to claim on smaller vet visits too, not just emergencies.

This page is for educational purposes and isn't personalised advice. Premiums, terms and eligibility vary by insurer, pet and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.