Nationwide, the biggest name in pet insurance nationwide, will soon cancel coverage for roughly 100,000 animals across the country. This decision is attributed to the rising costs of veterinary care, according to the company, and the cancellations are already underway, expected to continue through the summer of next year. This is part of the company’s attempt to “maintain long-term viability and profitability,” Nationwide stated Friday.
“Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and the withdrawal of some products in some states—difficult actions that are necessary to ensure a financially sustainable future for our pet insurance line of business,” Nationwide said in a statement. The company, based in Columbus, Ohio, and celebrating its 90th anniversary, has confirmed that pets’ age, breed, or prior claims records are not factors in these cancellations. Those affected will be notified in writing.
The popularity of pet insurance has grown in recent years. A NerdWallet study from February found that 24% of pet owners now have pet insurance coverage. While NerdWallet itself named Nationwide as the top insurance provider for exotic pets, the ASPCA was found to offer the best coverage overall.
This development comes as many Americans are facing challenges in securing various forms of insurance, including auto and homeowner’s policies. According to the latest government data, car insurance prices climbed 20.3% in the twelve months ending in May.
Pet insurance policies provide varying levels of coverage. Most typically cover injuries, illnesses, and general wellness. NerdWallet found that the average cost is around $676 a year for dogs and about $383 for cats, based on the most common policy types.
