Nationwide will cancel coverage for approximately 100,000 animals and pets across the country. The largest provider of pet insurance in the nation attributed the decision to the rising cost of veterinary care, leading to the discontinuation of the product in certain states. The termination of thousands of coverage plans begins now and will proceed through next summer as part of the company’s efforts to “maintain long-term viability and profitability,” Nationwide announced on Friday in a statement.
Pet insurance policies vary but typically cover injuries, illnesses, and general well-being
“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,” it stated.
A pet’s age or breed will not influence the cancellations, or prior claims, and affected owners will be informed in writing beforehand, according to the 90-year-old company based in Columbus, Ohio.
Pet insurance has gained popularity, with 24% of pet owners purchasing coverage, according to a NerdWallet study from February. NerdWallet found Nationwide to be the best insurance for exotic pets. However, for broad coverage, the ASPCA ranked highest. Nationwide’s announcement comes as many Americans face difficulties obtaining various forms of insurance, including for homes and vehicles. Car insurance rose 20.3% for the 12 months ending in May, according to the latest government data. Pet insurance policies vary but typically cover injuries, illnesses, and general well-being. The average cost is $676 a year for dogs and $383 for cats for the most common type of policy, NerdWallet found.