Nationwide, the largest provider of pet insurance in the U.S., has announced the cancellation of coverage for approximately 100,000 pets across the country. This decision is driven by the escalating costs of veterinary care and other financial pressures impacting the company’s profitability. Nationwide states that these measures are part of their strategy to maintain long-term viability and profitability in their pet insurance line of business.
“Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in some states — difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business,” the company said.
The company clarified that the cancellations will not be based on a pet’s age, breed, or prior claims. However, many of the affected policies belong to older pets with pre-existing conditions, which may be challenging to insure elsewhere, according to a report by USA Today.
Christie Keith, a 65-year-old freelance writer from Davisburg, Michigan, expressed her concerns to USA Today. Keith, who has two older dogs requiring medical attention, fears she will struggle to afford their vet bills without insurance. She has been paying at least $600 a month for their coverage since November 2017. Her 10-year-old Silken Windhound, Ros, has been hospitalized twice due to an undiagnosed illness, while Harper, her 8-year-old Scottish Deerhound, has been treated for a back injury.
“I was willing to pay this very large amount to get this coverage because I love my dogs. They’re my family. They are not like a car, or even a house, or a thing that can be replaced or rebuilt, they are important to me,” Keith said.
According to NerdWallet, about 24 percent of American pet owners have insurance for their cats or dogs, a figure that is steadily increasing. Pet insurance policies can cover a wide range of services, from routine care like teeth cleanings to treatments for serious illnesses and accidents.
More than half of pet owners surveyed by NerdWallet reported having pet insurance for peace of mind. “When it is available, pet insurance can give pet owners much-needed peace of mind when it comes to protecting their finances from unexpected medical costs related to pets,” said Kimberly Palmer, a personal finance expert at NerdWallet.
Nationwide’s announcement comes amid rising insurance costs in various sectors, including a 20.3 percent increase in car insurance over the 12 months ending in May, according to government data.
In their statement, Nationwide expressed empathy for the affected policyholders. “We certainly empathize with the disappointment many of our pet families feel and will fully stand by the protections for which they have paid through the end of their current term,” the company said. “Our rates will continue to be fair and appropriately priced for the plan, pet, and breed.”
The cancellations will take effect immediately, with affected policyholders being notified in writing. The process will continue through the summer of 2025.
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