Nationwide Drops Pet Insurance for Thousands
Nationwide, the nation’s largest pet insurer, is canceling pet insurance policies for roughly 100,000 pets across the country. The company cited rising veterinary care expenses and other economic factors as the driving forces behind their decision, which they state is crucial to safeguarding the long-term financial stability of their pet insurance division.
“As pet lovers ourselves, we understand the emotions connected to the protection of our family pets. Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and plan availability in some states — difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business,” the company stated in a Wednesday announcement.
Affected policyholders are being notified of these changes in writing. Nationwide, which currently insures 1.2 million pets, started sending letters this spring, and will continue this process into the summer of 2025.
Nationwide’s move comes amidst a broader crisis in insurance costs. According to federal inflation data, the cost of auto insurance has seen a substantial increase of 22.6% in the past year, surpassing all other categories tracked by the government, including food, energy, clothing, new and used vehicles, medical services, and rent. The surge in home insurance costs is so significant that some homeowners are opting to go without coverage.
Customer Concerns and Reactions
Following the release of Nationwide’s announcement, policyholders voiced their concerns on social media. Many expressed particular distress, especially those with pets suffering from health issues that require expensive monthly treatments and medications.
Robin Tobias of Aventura, Florida, received a letter from Nationwide in April informing her that coverage for her dog, Ginger, would not be renewed. “Pet owners are contemplating euthanizing sick pets because they are uninsured, and all they can say is they need to make more money, so too bad,” Tobias said.
Nationwide stated that these actions are necessary to ensure the continued coverage of pets in the future, and that their actions adhere to the law and their agreements with policyholders. While Ohio policyholders are among those affected, the company did not specify the number.
Other companies are seeking to take advantage of the situation. MetLife, for example, has reached out to offer assistance to owners of pets with preexisting conditions.
“We certainly empathize with the disappointment many of our pet families feel and will fully stand by the protections for which they have paid. Given the current environment, our rates will continue to be fair and appropriately priced for the plan, pet, and breed,” Nationwide said in their statement.
Tobias shared the letter she received from Nationwide with The Dispatch. It stated, “After careful review of our products, we’ve elected to discontinue certain plans, including Whole Pet, which will no longer be offered in your state.” It continued, “The same economic pressures from inflation, higher interest rates and rising that have caused unprecedented losses for the American insurance industry are affecting the pet industry as well, leading to difficult decisions such as this.”
Ginger’s coverage will end on July 23. Tobias currently pays about $160 a month to insure her 7-year-old dog, who has a heart murmur. She purchased the insurance when Ginger was a puppy.
“There’s a lot of people panicking,” Tobias said. She is especially worried about older pets with health problems that might be abandoned because owners can’t afford care or new insurance. “That’s the reason why you take insurance,” she asserted. “Down the road, you’re doing to need it. It’s horrifying really. For us, dogs have been our children. Everything we do is to protect our children.”
Tobias hopes to find another insurer to cover Ginger, but worries that others won’t be as lucky.
Christi Keith of Davisburg, Michigan, has three dogs insured by Nationwide who will lose their coverage. “I thought I had a safety net for my dogs. I thought I was doing the responsible thing,” she commented. Although she thinks her youngest dog can obtain coverage elsewhere, her other two have health issues, making it more difficult. “My two old dogs are just screwed,” she stated. She emphasized that she bought the coverage based on a promise from Nationwide. “The whole point of insurance is not to be put in that position,” she said.
