Before you sign up for pet insurance, you want to make sure that you understand how it works. Your policy will make note of several things, including your copay and deductible. If you ever had health insurance before, you know that the copay is the amount due when you see a doctor. With pet insurance, the copay is usually based on an amount that you set. For example, you might set your copay a 15%. While insurance will cover 85% of your pet’s medical costs, you’re responsible for the remaining 15%, which can be quite high. Setting a lower copay lets you pay less when you file a claim but often requires a higher monthly payment.

Your deductible refers to the total amount of coverage that you get in a single year. Most companies allow you to adjust this amount if your pet needs more coverage or you want to pay less each month. Deductible can refer to the amount that the policy will cover per incident or claim that you file. The calendar year or annual deductible tells you how much the insurer will pay in total. This relates to your maximum coverage, which is the total amount of coverage offered by the insurer. If your pet requires more care, you’re responsible for paying the remaining costs. Some pet insurers give you the option of signing up and paying extra for unlimited coverage.

There is also a waiting period, which tells you how long you have to file a claim. Most companies require that you wait a minimum of 14 days after buying a policy before taking your pet to a vet. Companies can set a waiting period on how long you have after an accident before filing a claim, too. You’ll also want to look at whether the policy covers pre existing conditions. These are diseases and problems that your pet had before you bought a policy. None of the pet insurance companies we found will cover pre existing conditions.