Nationwide to Drop Up to 100,000 Pet Insurance Policies Citing Rising Vet Costs

The largest pet insurance company in the US, Nationwide, is discontinuing coverage for around 100,000 animals nationwide, citing the rising expense of veterinarian treatment as the reason for doing so in some regions.

In an effort to "maintain long-term viability and profitability," Nationwide has decided to cancel thousands of coverage policies, and this process will start this summer and go until the summer of next year, the firm announced in a statement on Friday.

According to the 90-year-old Columbus, Ohio-based firm, the cancellations will not be based on a pet's age, breed, or history of claims, and the owners of those affected will be informed in writing beforehand.

A February NerdWallet analysis revealed that pet insurance has become increasingly popular, with 24% of pet owners getting coverage. NerdWallet determined that Nationwide offered the greatest insurance for exotic pets. However, the ASPCA ranked first for overall coverage.

The news from Nationwide comes at a time when many Americans are having trouble obtaining insurance, even for their houses and cars. The most recent official data shows that for the year ending in May, the cost of auto insurance increased by 20.3%.

Pet insurance plans differ but usually cover diseases, injuries, and overall health. According to NerdWallet, the most popular kind of protection costs, on average, $676 for dogs and $383 for cats annually.

Impact on Pet Owners

The cancellation of pet insurance policies by Nationwide is expected to have significant repercussions for affected pet owners. Financially, the discontinuation of coverage could place a considerable burden on those who rely on insurance to manage the high costs of veterinary care. Without the safety net of insurance, routine check-ups, emergency visits, surgeries, and treatments for chronic conditions can become prohibitively expensive. This sudden shift may force pet owners to reassess their budgeting and potentially cut back on other expenses to ensure their pets receive necessary medical attention.

The financial strain is compounded by the emotional stress of worrying about a pet's health without the assurance that insurance provides. Pet owners may feel anxious about potential future veterinary bills and the possibility of having to make difficult decisions about their pets' care based on financial constraints rather than medical needs. This stress can be particularly acute for those with older pets or pets with pre-existing conditions, as their veterinary costs are typically higher.

To adapt to the loss of insurance coverage, pet owners may need to make several adjustments. One crucial step is setting up an emergency fund specifically for veterinary expenses. Allocating a portion of their monthly budget to this fund can help mitigate the impact of unexpected medical costs. Additionally, pet owners might explore wellness plans offered by veterinary clinics, which can provide some financial relief by spreading out the cost of routine care over the year.

Another option is to look for alternative insurance providers. While the search for a new policy might be challenging, especially for pets with a history of claims or chronic conditions, it is still possible to find coverage that fits their needs and budget. Pet owners should compare different plans, focusing on the coverage offered, exclusions, premiums, and customer reviews to make an informed decision.

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