Hundreds of thousands of pet owners have been left without cover after Nationwide abruptly canceled pet insurance policies earlier this month.
The company suddenly announced it was dropping policies on about 100,000 pets, blaming rising costs of veterinary care and recent changes to insurance policies.
In a rack on June 14 it said the policies would be dropped when they expire, usually between now and next summer.
Nationwide said the non-renewals have nothing to do with the pets’ age, breed or previous claims history.
But one affected pet owner has dogs aged 10 and 8 who have recently had treatment – and now she fears she will not be able to find a new insurer for Ros and Harper.
It comes amid widespread chaos in the insurance industry as a whole, as rising costs prompt insurers to raise property and auto premiums and even flee some states entirely.
The company announced it is dropping policies on about 100,000 pets, blaming rising costs of veterinary care and recent changes to underwriting terms.
“As animal lovers, we understand the emotions associated with protecting our pets,” Nationwide Insurance said in a statement.
“Inflation in the cost of veterinary care and other factors have led to recent insurance policy changes and the withdrawal of some products in some states – difficult actions necessary to ensure a financially sustainable future for our pet insurance industry.”
The company says it insures more than a million pets, making it the largest pet insurer in the country.
In addition to coverage for common pets such as cats and dogs, the insurer also offers policies for exotic pets such as amphibians and birds.
Across all its services, including homeowners and vehicle coverage, the company posted net operating income of $1.3 billion last year.
But despite Nationwide claiming that previous claims history was not a factor, many of the premiums affected are older pets with pre-existing conditions.
Now their owners are concerned about the ability to find affordable coverage elsewhere.
Freelance writer Christie Keith, who lives in Michigan, was told that the policies for her dogs would expire as they reached their renewal dates, and that she would not be able to get lower policies for them.
The 65-year-old told me USA today that she was concerned about finding coverage elsewhere because her aging pets both recently needed treatment.
Ros, 10, a Silken Windhound, has been in hospital twice and has an ongoing, undiagnosed illness, while Harper, eight, a Scottish Deerhound, was recently treated for a back injury.
‘No one else will take on old dogs with pre-existing conditions and even if they do, they will rule out any pre-existing conditions. I don’t know what I’m going to do,” she told the outlet.
According to the personal finance site NerdWalletAbout 24 percent of Americans who own a dog or cat have pet insurance.
Depending on the policy, this may include routine medical care including teeth cleanings, as well as treatment for illnesses and accidents.
Many pet owners purchase insurance because they may not be able to cover the costs of a large medical bill for their animal.
On average, insurance costs $53 per month for dogs and $32 for cats, but prices will increase as pets age.
Some dog breeds, such as French bulldogs, are more prone to certain health problems, making them more expensive to insure.
And the cost of veterinary services is rising. The category rose 7.1 percent in the year to April, according to the Bureau of Labor Statistics.
Contributing to these rising costs are a tight supply of veterinarians and technicians, more advanced medications and treatments, and increased investor ownership of veterinary practices. The New York Times reported.
For all its services, including homeowners and vehicle coverage, Nationwide Insurance posted net operating income of $1.3 billion last year
“As animal lovers, we understand the emotions associated with protecting our pets,” Nationwide Insurance said in a statement.
Many pet owners purchase insurance because they may not be able to cover the cost of a large 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 top claims included $46,900 for a vomiting Black and Tan Coonhound, and $43,389 for the treatment of a French bulldog with a corneal ulcer.
These eye-watering costs are part of the reason why pet owners are so concerned about being dropped by their insurer.
Many of the policyholders affected by Nationwide’s announcement have joined Facebook group called “Dropped by Nationwide Pet Insurance Whole Wellness,” USA Today reported.
The group, which has almost 400 members, is considering what legal action it can take against Nationwide.
Robin Tobias, from Florida, told the outlet that she received a letter stating that 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 from inflation, higher interest rates and interest rate hikes that have caused unprecedented losses for the U.S. insurance industry are also hitting the pet industry, leading to difficult decisions like these,” a letter from Nationwide said.
“Pet owners are considering euthanizing sick pets because they don’t have insurance, and all they can say is they need to make more money, too bad,” Tobias said.