Updated: August 13, 2025
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Annual limits for pet insurance cap how much your insurer reimburses you each policy year, ranging from $2,000 to unlimited coverage.
If you hit your annual limit, you'll pay 100% of veterinary costs out-of-pocket until your policy renews and resets.
Choose your annual limit by assessing your pet's profile, considering your budget, researching local vet costs and comparing provider options.
A pet insurance annual limit is the maximum dollar amount your insurer will pay for covered veterinary expenses during your policy year, which resets every 12 months. For example, if you have a $10,000 annual limit and your cat needs $8,000 in cancer treatments this year, you'd pay the vet upfront and get reimbursed by your insurer, leaving you with $2,000 remaining coverage until your policy renews.
Pet insurers also use other types of annual limits that work differently:
Per-incident limit | This caps how much your insurer pays for each illness or injury during your pet's lifetime. Suppose your policy has a $5,000 per-incident limit and your dog tears its ACL. In that case, your insurer won't pay more than $5,000 for that specific injury, even across multiple treatments or surgeries. |
Lifetime limit | This sets the maximum amount your insurer will ever pay for your pet during his lifetime across all conditions and incidents. Once you reach this cumulative limit, whether it's $50,000 or $100,000, your coverage ends permanently and you'll need to find a new policy. |
Once you reach your pet insurance annual limit, you'll pay 100% of all veterinary costs out-of-pocket until your policy renews and the limit resets. Your coverage doesn't end; you'll still have an active policy, but your insurer won't reimburse any additional expenses for the remainder of your policy year.
Pet insurance annual limits can range from $2,000 to unlimited coverage, with most insurers offering popular options like $5,000, $10,000, $15,000 and $25,000. A good starting point is at least $10,000 annually, which covers most emergency surgeries and serious illnesses. For example, treating a dog's torn cruciate ligament costs around $2,299 based on CareCredit's 2024 data, while cancer treatment can reach $5,351 for dogs and $3,980 for cats.
Pet insurance companies offer vastly different annual limit options. See below what you can expect from major providers.
AKC | $2,500, $5,000, $7,500, $10,000 |
ASPCA | $2,500, $5,000, $7,500, $10,000 |
Embrace | $2,000, $5,000, $8,000, $10,000, $15,000, Unlimited |
Fetch | $5,000, $10,000, Unlimited |
Figo | $5,000, $10,000, Unlimited |
Healthy Paws | Unlimited |
Lemonade | $5,000, $10,000, $20,000, $50,000, $100,000 |
Liberty Mutual | $5,000, $10,000, $15,000 |
MetLife | $2,500, $5,000, $10,000 |
Nationwide | $2,500, $5,000, $10,000 |
Pets Best | $5,000, $10,000, Unlimited |
Prudent Pet | $2,500, $10,000, Unlimited |
Pumpkin | $5,000, $10,000, $20,000, Unlimited |
Rainwalk | $5,000, $8,000, $10,000, $12,000, $15,000, $20,000 |
Spot | $2,500, $3,000, $4,000, $5,000, $7,000, $10,000, Unlimited |
Trupanion | Unlimited |
Wagmo | $20,000 |
To find the annual limit that provides enough financial protection to your pet and fits your budget, follow the steps below.
Consider your pet's age, breed and lifestyle when evaluating its potential health care needs. Older pets face higher risks for conditions like cancer, arthritis and cataracts, while active, younger pets are more likely to have accidents or joint problems later due to wear and tear on their bodies. Certain breeds come with their own health challenges: German Shepherds and Labrador Retrievers commonly develop hip dysplasia, Bulldogs are prone to respiratory problems and Persian cats often experience kidney disease and breathing issues.
Look up average costs for common procedures your pet might need based on age and breed. According to CareCredit, cataract surgery can reach $3,600 for dogs, feline leukemia treatment averages $633 and hospitalization in an emergency clinic costs around $722 for dogs and $72 for cats. If these amounts would strain your finances significantly, consider a higher annual limit to provide better financial protection.
Higher annual limits mean higher monthly premiums, so choose a limit that allows for a premium that fits in your budget. Remember that pet insurance works on a reimbursement system, so you'll need funds to pay the vet upfront before getting reimbursed. Consider setting aside an emergency fund of $1,000 to $2,000 to cover the initial payment while waiting for reimbursement.
Get quotes from at least three insurance providers with the same annual limit (like $10,000) to see how premiums vary. One insurer might charge $45 monthly, while another charges $65 for identical coverage. Pay attention to whether companies offer unlimited options and what their premium increases look like, since some raise rates more significantly as your pet ages.
If your budget allows, higher limits or unlimited coverage provide better financial protection for multiple conditions or chronic illnesses that require ongoing care.
Pet insurance annual limits determine how much financial protection you'll have each policy year, ranging from $2,500 to unlimited coverage. If you exceed your limit, you'll cover all remaining vet costs until renewal. Choose your annual limit wisely by evaluating your pet's risks, assessing your budget and comparing providers to find coverage that fits your needs.
We’ve compiled answers to some of the most frequently asked questions about pet insurance annual limits:
Most pet insurance companies allow you to change your annual limit during policy renewal. You can usually increase your limit without restrictions, but decreasing your limit may affect coverage for pre-existing conditions.
Once you exceed your annual limit, you'll pay 100% of all veterinary costs out-of-pocket until your policy renews and the limit resets. Your policy remains active, but your insurer won't reimburse any additional expenses for the remainder of your policy year.
Unlimited annual coverage provides peace of mind for multiple conditions or chronic illnesses requiring ongoing care, but it increases monthly premiums. Still, it may be worth it if your pet has breed-specific health risks or if you want maximum financial protection.
Annual limits reset every policy year, while lifetime limits set a permanent maximum your insurer will pay for your pet. Once you reach a lifetime limit, your coverage ends permanently.
Higher annual limits increase your monthly premium, but the exact impact varies by provider and your pet's profile. For example, upgrading from a $5,000 to $10,000 limit might add $10 to $20 monthly, while unlimited coverage could increase premiums by $20 to $40 more.
Yes, annual limits reset every policy year, typically every 12 months from your policy anniversary date. This means you get fresh coverage each year, regardless of how much you used the previous year. For example, if you have a $10,000 annual limit and used $8,000 last year, you start the new policy year with the full $10,000 available again.
Older pets should consider higher annual limits ($15,000 or unlimited) due to increased risks for expensive conditions like cancer, arthritis and cataracts. Based on CareCredit's research, cancer therapy averages $5,351 for dogs and $3,980 for cats, while cataract surgery reaches $3,600.
Yes, several major insurers offer unlimited annual coverage with no caps on yearly payouts. Based on our provider comparison, Trupanion and Healthy Paws offer only unlimited plans, while Embrace, Fetch, Figo, Pets Best, Prudent Pet, Pumpkin and Spot provide unlimited options alongside capped plans.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
