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A) We had pet insurance but still owed $40 in fees.
B) We had pet insurance: but still owed $40 in fees.
C) We had pet insurance but, still owed $40 in fees.
D) We had pet-insurance but still owed $40 in fees.
Don't be confused (or fooled) into thinking that you need a comma before the coordinating conjunction 'but.' You would only add a comma if that second clause contained a subject, e.g. ....
We had pet insurance, but we still owed $40 in fees.
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