Pet Insurance Cancellations and Costs
Is pet insurance a worthwhile purchase? Recent developments might make you reconsider.
Nationwide, a major pet insurance provider, is discontinuing coverage for around 100,000 animals across the United States. The company cited the increasing expenses of veterinary care as the reason for the cutbacks, which will roll out starting now and continue through the summer. Nationwide stated that these actions are to “maintain long-term viability and profitability.”
This decision is driven by rising veterinary costs and adjustments to their underwriting practices. It’s a tough call, but one designed to secure the long-term financial health of their pet insurance services. The cancellations won’t consider a pet’s age, breed, or past claims, and affected owners will receive advance written notice.
Pet insurance has become more popular. As of February, a NerdWallet study showed that 24% of pet owners have policies. NerdWallet named Nationwide as the top pick for exotic pets, while the ASPCA was rated best for general coverage.
This news comes as many are coping with rising insurance premiums across the board. For example, car insurance prices jumped 20.3% for the year ending in May according to government data.
Pet insurance policies differ, usually covering injuries, illnesses, and general wellness. According to NerdWallet, the average annual cost is $676 for dogs and $383 for cats, calculated for the most common type of policy. Consider these numbers while deciding if pet insurance makes sense for your furry friend.
