What Is Pet Insurance And How Does It Work?

Pet insurance is a protective measure for unexpected veterinary costs for illness or injury in dogs and cats. Monthly or annual premiums protect you from these bills.

Accident-only plans cover emergencies like fractures or collisions. These core plans exclude preventive services and pre-existing issues. Accident-and-illness policies add coverage for cancer, diabetes, and genetic conditions, including needed treatments. Wellness riders cover routine care.

After any waiting period, you pay your vet directly, file a claim, and receive reimbursement within about a week. Pet insurance helps you choose care based on medical needs, not financial limits.

This guide will explain what the purpose of pet insurance is and what it covers. In addition, we will discuss the enrollment process, provide an explanation of how pet insurance works, and cover many other topics.

How Does Pet Insurance Work?

Pet insurance is often a pay-and-claim arrangement. You first pick a policy and set its key levers: deductible, reimbursement percentage, and annual or per-incident limit, and then maintain the coverage with a monthly or annual premium.1

Once waiting periods end, you can visit any licensed vet, pay the full invoice at checkout, and file a claim (usually within 60-270 days, varies by provider) by uploading the itemized bill and any requested records.

After your deductible is satisfied, the company reimburses its chosen share of covered costs, which is often 80-100% up to your limit. The money is typically sent by direct deposit or check within about a week, with “vet-direct pay” offered by a few providers.

USAA pet insurance review 2026: 4.4 out of 5 stars

USAA rating: 4.4 out of 5 stars

USAA has been offering pet insurance through Embrace since 2014. USAA’s pet insurance rates are well below the average of all the insurers for which we collected cost data. The company also offers generous discounts, such as 15% off for current USAA customers and savings for military members, as well as for members with service dogs or multiple pets.

USAA pet insurance pros and cons

Pros

Unlimited annual coverage option

Below-average pet insurance prices

Bundling discount for existing USAA customers

Preexisting conditions are covered after one year

Images from different sources used for illustration purposes only

Cons

No option for direct vet payments

Must purchase add-ons to get coverage for exam fees and prescriptions

Six-month waiting period for canine orthopedic conditions

Learn more: Is pet insurance worth it? How to decide

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USAA pet insurance basics

Annual maximum limit choices: $2,000, $5,000, $8,000, $10,000, $15,000, Unlimited

Deductible choices: $100, $250, $500, $750, $1,000

Reimbursement choices: 70%, 80%, 90%

USAA waiting periods

For accident coverage: None

For illness coverage: 14 days

Special waiting period: 6 months for canine orthopedic conditions, which can be reduced to 14 days with an orthopedic exam

What does USAA pet insurance cover?

USAA covers many pet health conditions and veterinary services under its accident and illness plan as well as its accident-only plan. The annual coverage limits, reimbursement rates, and deductible options vary depending on the coverage you choose. Here’s what is covered under the base pet insurance policies (without add-ons).

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