Heidi Verock was shocked to receive a non-renewal notice from Nationwide. After 14 years of insuring her dog, Donut, the company was dropping her policy.
“We bought into your promise of it’s on your side and their not,” Verock said. Donut is battling cancer, and Nationwide’s coverage had made chemotherapy affordable. “It would be $800-900 when she would walk out, and then we would go 2-3 weeks later for the same thing,” Verock explained. Since receiving notice from Nationwide, Verock has had difficulty finding alternate coverage due to Donut’s age and Donut’s preexisting condition.
Their insurance coverage officially ended in July. Verock said she has no plans to get rid of Donut and will have to budget to manage the new financial burden.
“It’s going to be a tough pill to swallow. It’s just unfortunate that we were dropped at this point,” Verock said. “We’ve had such success with them. I don’t know what we’re going to do.”
Verock isn’t alone. Nationwide made the decision to not renew the policies of about 100,000 other pet policies this year, according to a statement from the company.
Nationwide declined an interview but issued a written statement that said, “We are making these tough decisions now so that we can continue to be here for even more pets in the future.” The company attributed the decision, in part, to the rising cost of veterinary care.
“Costs are going up, and insurance companies are trying to keep pace with that and plan for the future because they don’t know how much costs are going to rise in 10 years,” said Harrison Stenson, a licensed pet insurance advisor at Angell Animal Medical Center.
Stenson said he has been speaking with many pet owners who have been dropped by Nationwide and are now scrambling for other alternatives.
“Nationwide has put a lot of policyholders sort of up the creek without a paddle, and it’s really unfortunate,” Stenson said. He explained that the rise in vet costs makes pet insurance even more vital for owners.
“There have been a lot of advancements in veterinary medicine, so the costs associated with training staff to keep up with that and implementing that technology is unfortunately high sometimes,” Stenson said.
Stenson doesn’t see many other policies being dropped, nor does he expect other insurance companies to not renew current policyholders.
Even so, pet owners such as Becky Chakarian are worried.
“I don’t know what the next policy renewal year might bring. If, God willing, my dogs are still alive and healthy at 13, I don’t know what kind of coverage they might have,” she said.
Chakarian has insured her three dogs with Nationwide for years. None of her pets were dropped entirely, but premiums rose for another dog, and coverage decreased for another.
“I think we just felt a little betrayed,” Chakarian said. “To have that sort of taken our from underneath us as our dogs are turning 12 felt like a punch to the gut.”
Chakarian estimates the changes will mean having to pay an additional $3,000 for vet bills.
“Our dogs, their health is our priority, so we’ll make it happen, but it pains me to think of folks who don’t have flexibility to make that happen on a fixed budget. The decisions that they are making are going to be really heartbreaking,” she said.
Stenson recommends that pet owners unable to find coverage set aside the money they would have paid for monthly premiums and put it in a savings account for pet care.
There are also special finance options, such as CareCredit and Scratchpay, that allow owners to spread the payment of vet bills over time. The American Kennel Club may offer assistance to Massachusetts owners who have pets under eight years old, according to Stenson.
Owners who have an issue with their pet insurance can submit a complaint to their state’s division of insurance.
