Pet insurance can help reduce the financial impact of unexpected veterinary bills, particularly when accidents, illnesses, surgeries, diagnostic tests, or chronic conditions require expensive treatment. In 2026, Costco members can access pet insurance through Figo Pet Insurance, with a Costco-exclusive discount on eligible policies.
Costco does not directly underwrite the pet insurance policy.
The Costco pet insurance program is offered through Figo Pet Insurance, with policies underwritten by Independence American Insurance Company. Costco Insurance Agency may receive compensation from Figo or its affiliates but does not underwrite the insurance or pay claims.
The program is designed for dogs and cats and can provide reimbursement for eligible veterinary expenses after applicable deductibles, reimbursement percentages, waiting periods, limits, and exclusions are applied.
Premiums depend on factors such as:
Consequently, there is no single monthly price that applies to every Costco member.
One of the main Costco member benefits is a 15% discount on eligible Figo pet insurance.
Costco states that Gold Star and Business members can receive the discount through Figo, subject to geographic and policy restrictions.
The discount structure has an important state-specific exception.
In Tennessee, Figo provides a member-specific product with base premium rates that are 15% lower than the standard nonmember product. In other states where the Costco discount applies, the 15% reduction reflects a discount from Figo's applicable base rates.
Rates and discounts can change, so the final premium should be reviewed when obtaining a policy quote.
A separate promotion can provide a $25 digital Costco Shop Card for eligible new Figo policy purchases.
The promotion's current 2026 period runs from:
July 1, 2026 through September 30, 2026
The policy must meet specific requirements, including remaining active for at least 32 consecutive days after the applicable policy effective date.
The promotion is limited to one reward per household. The digital Shop Card is sent by email approximately 4–6 weeks after the policy effective date when the applicable requirements are satisfied.
The Shop Card promotion has state exclusions, including:
The promotional terms also list the states in which the reward is offered, so state eligibility should be confirmed before relying on the promotion.
Figo policies offered through Costco can cover eligible expenses associated with unexpected accidents and illnesses.
Depending on the policy and selected coverage, categories can include:
Veterinary exam fees can be included through an optional add-on, and a routine wellness plan can provide additional coverage for certain preventive services.
Coverage depends on the actual policy terms rather than the general list of covered categories.
Pet insurance does not cover every veterinary expense.
Costco's Figo information identifies several exclusions, including:
Waiting periods can also apply before certain conditions become eligible for reimbursement.
Pre-existing conditions are particularly important when comparing pet insurance policies.
A condition that existed or showed symptoms before the policy's applicable coverage period may be excluded even if a later veterinary visit occurs after enrollment.
Dog insurance can help with unexpected veterinary costs associated with accidents and illnesses.
Potentially covered situations can include:
The risk of veterinary expenses can vary substantially by breed, age, location, and health history.
For example, larger breeds can have different risks from smaller breeds, while older dogs may have higher premiums because age is one of the factors used to calculate rates.
Cat insurance can similarly help with eligible veterinary expenses resulting from accidents and illnesses.
Potentially covered care can include:
Figo's Costco program provides coverage structures for cats and kittens, with reimbursement and deductible selections depending on the policy.
Pet insurance generally works differently from human health insurance.
Under the Costco/Figo program, the pet owner generally pays the veterinary bill and then submits the eligible paid invoice for reimbursement after applicable requirements are satisfied. Costco states that claims can be submitted online or through Figo's Pet Cloud app.
For example, consider a hypothetical eligible veterinary bill of $2,000.
If a policy has:
the calculation would depend on the policy's specific deductible structure and eligible expenses.
A simplified illustration would be:
$2,000 eligible bill − $500 deductible = $1,500
80% of $1,500 = $1,200 potential reimbursement
The actual reimbursement can differ because policy terms, benefit limits, excluded charges, deductibles, and other conditions apply.
The deductible is the portion of eligible expenses that must generally be paid before reimbursement begins according to the policy structure.
Common deductible levels can vary by insurer and policy.
A lower deductible can increase the premium, while a higher deductible can reduce the premium but increase out-of-pocket costs when a claim occurs.
The appropriate balance depends on household budgeting and the expected ability to handle an unexpected veterinary bill.
Figo policies can offer different reimbursement percentages.
Examples may include:
Higher reimbursement percentages can increase premiums.
A policy with a lower monthly premium can therefore have a different financial structure from a policy with a higher reimbursement rate.
The comparison should include both recurring premiums and potential out-of-pocket expenses.
Annual benefit limits can also affect the overall value of a pet insurance policy.
Some policies can provide high or unlimited annual coverage, depending on the plan structure.
A higher annual limit can be particularly relevant when a pet develops a serious condition requiring repeated treatment.
However, higher limits can also affect the premium.
The policy documents should be reviewed for annual limits, per-condition restrictions, deductibles, reimbursement rates, and exclusions.
Costco Executive members can receive an additional benefit associated with Figo pet insurance.
Costco states that eligible Executive members with an active Figo policy can receive Lost Pet Recovery through 24PetWatch. Restrictions apply, and the program is not offered in every state. Costco also identifies Alaska and Virginia as exclusions for Lost Pet Recovery.
This benefit is separate from veterinary reimbursement coverage.
Not necessarily.
A 15% discount does not mean every pet will have the same premium after the discount.
Premiums are calculated using factors such as:
Costco specifically states that premiums can increase or decrease according to these factors.
Consequently, comparing the final quoted premium is more meaningful than comparing the percentage discount alone.
Pre-existing conditions are one of the most important considerations in pet insurance.
Costco's Figo information states that pre-existing conditions are generally excluded. However, having a pre-existing condition does not necessarily prevent a pet from obtaining insurance.
New illnesses or injuries that meet policy requirements can still potentially qualify for coverage.
Policy definitions can vary, so the precise wording regarding prior symptoms, cured conditions, waiting periods, and exclusions should be reviewed before enrollment.
Insurance coverage generally does not begin for every condition immediately after enrollment.
Waiting periods can apply to certain illnesses, injuries, or conditions.
This means a veterinary expense occurring shortly after enrollment may not necessarily qualify for reimbursement.
The applicable policy should be reviewed for:
The exact waiting periods can vary by policy and location.
Pet insurance is primarily designed to address unexpected accidents and illnesses, but Figo also offers an optional routine wellness plan.
Depending on the selected coverage, wellness benefits can address certain routine veterinary expenses, including preventive services and routine dental care.
Routine wellness coverage should be considered separately from accident-and-illness insurance because the two serve different purposes.
Some pet owners prefer to save money independently for future veterinary expenses.
Others prefer insurance because a major unexpected bill can exceed the amount accumulated in a savings account.
A comparison can include:
| Factor | Pet Insurance | Self-Funding |
|---|---|---|
| Monthly cost | Premium required | No insurance premium |
| Large unexpected bill | Potential reimbursement | Paid directly |
| Pre-existing conditions | Generally excluded | No insurance restrictions |
| Deductible | Usually applies | None |
| Claims process | Required | None |
| Coverage limits | Policy dependent | Savings balance determines funds |
| Predictability | Premium plus out-of-pocket costs | Costs can vary substantially |
Neither approach eliminates veterinary expenses.
The main difference is how financial risk is managed.
Several figures should be reviewed together rather than focusing only on the 15% member discount.
The premium is the recurring cost of the policy.
A deductible determines how much eligible expense is paid before reimbursement under the policy structure.
The reimbursement percentage affects the portion of eligible expenses paid by the insurer after applicable deductions.
The annual maximum determines how much the policy can reimburse during a policy year when a limit applies.
Excluded conditions can have a major effect on the practical usefulness of a policy.
Coverage may not begin immediately for every type of claim.
Routine-care coverage may cost extra and should be evaluated separately.
A 15% discount sounds significant, but the underlying premium, deductible, reimbursement rate, and coverage limits remain important.
Prior symptoms and diagnoses can affect eligibility for certain claims.
A lower monthly premium can come with a higher deductible or lower reimbursement percentage.
A newly purchased policy may not immediately cover every condition.
Insurance policies contain exclusions and limitations.
Costco's promotional terms contain state-specific restrictions, and insurance products can vary by location.