Nationwide, the largest provider of pet insurance in the United States, announced it will cancel coverage for approximately 100,000 pets nationwide. The company cited escalating veterinary costs and other financial pressures as the primary reasons for this decision. Nationwide stated that this move is part of their efforts to “maintain long-term viability and profitability.”
“Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in certain states,” the company said. “These difficult actions are necessary to ensure a financially sustainable future for our pet insurance line of business.”
The cancellations, which will not be based on a pet’s age, breed, or prior claims, disproportionately affect older pets with pre-existing conditions, according to USA Today. This demographic is particularly vulnerable as they may find it challenging to secure new insurance.
Christie Keith, a 65-year-old freelance writer from Davisburg, Michigan, expressed her concerns to USA Today. Keith has two older dogs, both requiring medical attention. Ros, a 10-year-old Silken Windhound, suffers from an undiagnosed illness and has been hospitalized twice, while Harper, an 8-year-old Scottish Deerhound, has been treated for a back injury. Keith has been paying over $600 a month for their insurance since November 2017.
“I don’t know what I’m going to do,” Keith said. “No one else is going to take on old dogs with pre-existing conditions and even if they do they will exclude all of the pre-existing conditions. 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.”
Pet insurance is held by about 24% of American cat and dog owners, according to NerdWallet. Policies typically cover a range of services, including heartworm treatments, teeth cleanings, behavioral issues, grooming, and medically necessary euthanasia. Many pet owners invest in these policies for the peace of mind they provide.
“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.
However, insurance costs are rising across the board. Nationwide’s announcement comes amid broader difficulties for Americans in securing various types of insurance, including home and vehicle coverage. Car insurance alone increased by 20.3% in the 12 months ending in May, according to recent government data.
In response to the cancellations, Nationwide stated, “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. Our rates will continue to be fair and appropriately priced for the plan, pet, and breed.”
The cancellations will begin immediately, with affected policyholders being notified in writing. This process will continue through the summer of 2025.
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