Nationwide Cancels Pet Insurance Policies, Causing Uproar
Nationwide Insurance is dropping around 100,000 pet insurance policies, sparking worry among pet owners.
This decision, which Nationwide attributes to rising veterinary care costs and other financial pressures, is leaving many pet parents in a tough spot. The primary concern stems from the fact that many of the affected policies cover older pets with pre-existing conditions, who may struggle to find new insurance options.
Ros, a Silken Windhound, is one of the many pets affected by the policy cancellations.
Christie Keith, a pet owner from Davisburg, Michigan, is one of the affected customers. She’s been paying hundreds of dollars monthly for her dogs’ insurance. The cancellation of her dogs’ coverage is especially distressing because her older dogs have needed substantial medical care recently.
Keith emphasizes the importance of her pets, stating that they are family and cannot simply be replaced. Finding new insurance is difficult because many insurers won’t cover pre-existing conditions.
Harper, another of Keith’s dogs, also faces coverage cancellation.
Pet insurance is designed to help cover the often substantial costs of veterinary care. According to NerdWallet, about 24% of American dog and cat owners have pet insurance, which can cover routine checkups, accidents, and illnesses.
A NerdWallet expert, Kimberly Palmer, pointed out that many pet owners seek insurance for peace of mind, knowing they may face high, unexpected medical bills. The average monthly cost for pet insurance ranges from about $32 for cats to $53 for dogs, with rates often increasing as pets age.
Nationwide, a major player in the pet insurance market, says that the action is necessary to ensure the pet insurance line remains financially viable. The company insists that its decisions are “not associated with the pet’s age, breed or prior claims history.” However, the cancellation of policies, especially those covering older animals, is raising questions and concerns.
Ginger, a dog with a heart murmur, also has coverage cancelled.
Robin Tobias of Aventura, Florida, is another policyholder affected by the cancellations. Tobias, who has a 7-year-old dog with a heart murmur, is struggling to secure replacement coverage. She expresses worry about the possibility of owners abandoning pets if they can’t afford medical care or find insurance.
NerdWallet’s Palmer suggests that pet owners with animals with existing conditions should consider alternative options, like creating a savings account dedicated to pet care or working out payment plans with their veterinarian.
Nationwide began notifying affected policyholders earlier this spring and will continue into the summer of 2025.
