VetInsurance.co.nz

How cover works

Annual limits, excess and co-payment

A policy’s headline limit is the most it will pay in a year. What you actually get back from a single bill depends on two other numbers: the excess and the co-payment.

The short version

  • The annual benefit limit is the most the policy pays in a policy year. On the plans we checked, limits ran from about $1,500 on single-purpose plans to $25,000.
  • The excess is the amount you pay before the insurer contributes. Some policies apply it once a year, others per claim or per condition.
  • The co-payment is a percentage of each eligible bill that stays with you, often 10% to 30%. Some insurers raise it as a pet gets older.
  • Sub-limits cap particular things inside the annual limit. Cruciate ligament and dental conditions are common examples.

How the three numbers work together

Take an eligible $2,000 vet bill on a policy with a $200 excess and a 20% co-payment. The insurer typically deducts the excess first, then pays 80% of what remains. Exactly how it is calculated is set out in each policy wording, and the order of deductions can differ.

A higher excess or co-payment usually means a lower premium, because you carry more of each claim yourself.

Annual or per-claim excess

This is the detail most worth checking. Southern Cross, for example, says its excess is annual, “not payable per claim or per condition”. Other policies apply an excess to each claim or each new condition, which costs more for a pet that needs several separate treatments in a year.

Co-payments that change with age

Some plans add or increase the co-payment as a pet gets older. Petcover’s Superior plan, for example, adds a 20% co-payment from age 8 and 35% from age 10. A policy that looks generous for a young dog can return noticeably less in its later years.

Where this comes from

Insurer details checked on 26 October 2026. The policy wording always governs.

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