Dental insurance is different, mainly because of the relatively low limit it sets on claims. Most dental insurance plans won’t cover expenses that surpass $1,000-2,000 per year.
Contrast this with health insurance, which commonly covers expensive treatments, or home and auto insurance, where you’re covered for the full value of your house or car.
With dental insurance, you still pay your premiums, but if you go over your annual benefits cap, you’re on your own for any additional expenses.
Most people won’t surpass that cap in any given year. But here’s another consideration—if you don’t need much dental care, you’ll probably pay more in premiums than what you get back in reimbursements.
All these factors make dental insurance look more like a pre-payment plan than typical insurance.