Pet Owners Struggle as Nationwide Cancels Pet Insurance Policies
Nationwide Insurance’s recent decision to discontinue pet insurance coverage for approximately 100,000 pets nationwide has triggered concern and frustration among affected pet owners. The insurer cited rising veterinary care expenses and other factors impacting the profitability of its pet insurance division as the primary reasons for the move, as stated in a June 14 announcement.
This decision is creating significant challenges for numerous pet owners. Many of the affected policies are for older pets with pre-existing conditions, making it difficult, if not impossible, to secure comparable coverage elsewhere, even though Nationwide has stated that age or prior claims history are not factors in the policy cancellations.
For Christie Keith, a 65-year-old freelance writer from Davisburg, Michigan, the situation presents a particularly difficult dilemma. Her older dogs have recently required significant medical care. Ros, her 10-year-old Silken Windhound, has been hospitalized twice for an undiagnosed illness. Harper, an 8-year-old Scottish Deerhound, has been treated for a back injury. Keith has been paying substantial premiums to ensure her dogs are covered.
Keith expressed her deep concern to USA TODAY, saying, “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.” She further explained, “No one else is going to take on old dogs with preexisting conditions and even if they do they will exclude all of the preexisting conditions. … I don’t know what I’m going to do.'”
Keith’s policies for her dogs are set to expire, and Nationwide has stated they will not offer alternatives. She started paying for coverage for Harper in November 2017 and for Ros in April 2021. Her third dog, Pip, a 4-year-old Silken Windhound, was added to her coverage in December 2023.
What is Pet Insurance?
Pet insurance is designed to help cover the costs of veterinary care for unexpected accidents, illnesses, and sometimes, routine care. According to NerdWallet, approximately 24% of American households with cats or dogs have pet insurance.
NerdWallet personal finance expert Kimberly Palmer told USA TODAY that before purchasing a policy, it’s crucial to fully understand its terms. Some policies include coverage for behavioral issues and wellness services. Some plans may also encompass burial or cremation services as optional add-ons.
Why Pet Owners Seek Insurance
Many pet owners invest in insurance to avoid the financial strain of potentially expensive emergency medical bills. A NerdWallet report found that 57% of surveyed pet owners cited “peace of mind” as their reason for purchasing pet insurance.
Palmer emphasized the value of insurance in protecting pet owners’ finances, stating that 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.” The average monthly cost for pet insurance is about $53 for dogs and $32 for cats, and these costs increase as pets age, according to NerdWallet.
Nationwide’s Rationale for Policy Cancellations
Nationwide, which claims to be the largest pet insurance provider in the U.S., with over 1.2 million insured pets, explained that these changes were necessary to maintain financial stability and profitability. The company stated it has paid out claims amounting to “billions of dollars over the past four decades.”
Nationwide acknowledged the disappointment felt by many pet owners and committed to honoring the existing coverage terms. “Our rates will continue to be fair and appropriately priced for the plan, pet, and breed,” the statement read.
The company has said the nonrenewal decisions are “not associated with the pet’s age, breed or prior claims history.”
Affected Policyholders
Nationwide’s policy cancellations do not seem to be tied to the age, breed, or claims history of the pets. Many of these policyholders are older pets, often with pre-existing conditions.
Robin Tobias of Aventura, Florida, received notification that her coverage for her dog, Ginger, would not be renewed. The letter stated that the decision was due to the discontinuation of certain plans in her state, citing economic pressures from inflation, rising interest rates, and losses in the American insurance industry. The company states that these pressures are also influencing the pet insurance sector, leading to difficult choices like these.
Tobias shared that she pays roughly $160 per month for the coverage, which she first obtained when her dog was a puppy. Although she’s located another insurance provider who believes they will cover Ginger, she is anxious that others might not be so fortunate. She is particularly concerned regarding elderly pets with pre-existing health conditions who owners may abandon because they are unable to afford their care. In the words of Tobias, “That’s the reason why you take insurance. Down the road, you’re going to need it. It’s horrifying really.”
Impacted policyholders are being informed in writing about Nationwide’s plans, with the company starting to send letters in spring 2024, continuing through the summer of 2025. For Tobias, coverage for her dog Ginger ends on July 23. This reality highlights a profound concern for many pet owners experiencing similar issues.
“For us, dogs have been our children. Everything we do is to protect our children.”
