Hundreds of thousands of pet owners were left without coverage after Nationwide abruptly canceled pet insurance policies earlier this month.
The company suddenly announced it was canceling policies for about 100,000 pets, blaming the rising cost of veterinary care and recent policy changes.
in a statement on June 14, said the policies would be removed when they expire, which is typically between now and next summer.
Nationwide said non-renewals are not associated with the pets’ age, breed or previous claim history.
But one affected pet owner has dogs ages 10 and 8 who have recently been treated and is now worried she won’t be able to find a new insurer for Ros and Harper.
It comes amid widespread chaos across the insurance industry as a whole, as rising costs are pushing insurers to raise property and auto premiums and even abandon some states altogether.
The company announced it would eliminate policies for about 100,000 pets, blaming the rising cost of veterinary care and recent policy changes.
“As pet lovers, we understand the emotions involved in protecting our family pets,” Nationwide Insurance said in a statement.
“Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and recalls of some products in some states – difficult actions that are necessary to ensure a financially sustainable future for our veterinary insurance line of business. pets”.
The company says it insures more than one million pets, making it the largest pet insurer in the country.
In addition to covering common pets such as dogs and cats, the insurer also offers policies for exotic pets such as amphibians and birds.
Across all its services, which include homeowners and vehicle coverage, the company posted net operating income of $1.3 billion last year.
But even though Nationwide said previous claims history was not a factor, many of the affected premiums are senior pets with pre-existing conditions.
Now its owners are worried about finding affordable coverage elsewhere.
Freelance writer Christie Keith, who lives in Michigan, was told that her dog policies would expire when their renewal dates came up and she wouldn’t be able to get smaller policies for them.
The 65-year-old said USA Today that she was worried about finding coverage elsewhere since her elderly pets have recently needed treatment.
Ros, 10, a Silken Windhound, has been to hospital twice and has an ongoing undiagnosed illness, while eight-year-old Harper, a Scottish Deerhound, was recently treated for a back injury.
“No one else is going to take in older dogs with pre-existing conditions and even if they do, they will exclude all pre-existing conditions.” “I don’t know what I’m going to do,” he told the outlet.
According to the personal finance site Nerdy WalletAbout 24 percent of Americans who own a dog or cat have pet insurance.
Depending on the policy, this may include routine medical care, including dental cleanings, as well as treatment for illnesses and accidents.
Many pet owners obtain insurance because they may not be able to cover the cost of a large emergency medical bill for their animal.
On average, insurance costs $53 a month for dogs and $32 for cats, but prices will rise as pets age.
Some dog breeds, such as French bulldogs, are more susceptible to certain health conditions, making them more expensive to insure.
And the cost of veterinary services is increasing. According to the Bureau of Labor Statistics, the category increased 7.1 percent in the year through April.
Contributing to these increased costs are a shortage of veterinarians and technicians, more sophisticated medications and treatments, and greater investor ownership in veterinary practices. The New York Times reported.
Across all of its services, including homeowners and vehicle coverage, Nationwide Insurance posted net operating income of $1.3 billion last year.
“As pet lovers, we understand the emotions involved in protecting our family pets,” Nationwide Insurance said in a statement.
Many pet owners obtain insurance because they may not be able to cover the cost of a large emergency medical bill for their beloved animal.
The most expensive pet claim paid in 2023, according to the Pet Health Insurance Association, was $51,133 for a golden retriever with lymphoma, the outlet reported.
Other major claims included $46,900 for a vomiting black and tan coonhound, and $43,389 to treat a French bulldog with a corneal ulcer.
These exorbitant costs are part of the reason pet owners are so worried about being dropped by their insurer.
Many of the policyholders affected by Nationwide’s announcement have joined Facebook cluster called ‘Whole Wellness Removed from National Pet Insurance,’ USA Today reported.
The group, which has almost 400 members, is considering what legal action it could take against Nationwide.
Robin Tobias of Florida told the outlet that she received a letter saying coverage for her dog, Ginger, will not be renewed because the ‘Whole Pet’ plan will no longer be covered in her state.
“The same economic pressures of inflation, higher interest rates and increases that have caused unprecedented losses for the American insurance industry are also affecting the pet industry, leading to difficult decisions like this one,” a letter said. from Nationwide.
“Pet owners are considering euthanizing their sick pets because they don’t have insurance, and all they can say is they need to make more money, so it’s a shame,” Tobias said.