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Nationwide has announced that it will drop about 100,000 pet insurance policies over the next year, citing the rising cost of going to the vet as one big reason. That could leave thousands of pet owners scrambling to find coverage for their pets, especially older animals with pre-existing conditions that might not be covered under a new policy.
The non-renewals will occur between now and the summer of 2025 and “are not associated with the pet’s age, breed or prior claims history,” the insurance giant said in a statement, adding that customers whose pet insurance policies are affected will be notified in writing “well in advance.”
The company currently insures 1.2 million dogs, cats, birds and exotic animals.
“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.
The price of veterinarian services has jumped 7.6% over the past year, according to the latest Consumer Price Index from the Bureau of Labor Statistics. The rise has fueled growth in the pet insurance business. The pet insurance sector in the U.S. and Canada saw an almost 22% bump in revenue in 2023, the North American Pet Health Insurance Association’s State of the Industry report found.
Meanwhile, Nationwide said it will focus on expanding its pet insurance reach through its partnerships with other companies, including Petco, Walmart and Unum.
What Does Pet Insurance Cover?
Pet insurance is a health insurance policy for your pet—but what’s covered depends on what kind of plan you buy.
The three most common types are:
- Accident and illness. This is the most popular type of pet insurance plan. It generally covers treatment if your pet has an accident, such as swallowing a foreign object, or gets an illness, such as cancer.
- Accident only. This insurance will pay for medical expenses in case of accidents as well as for treatment of minor illnesses, such as ear infections, but not if your pet becomes seriously sick.
- Wellness. Wellness coverage is usually an optional add-on to an accident and illness policy. It covers routine wellness care, such as annual exams or vaccinations.
Most pet insurance plans will not cover pre-existing conditions, experimental treatments or non-veterinary expenses.
The average yearly cost for pet insurance is $576 for dogs and $336 for cats, according to a Forbes Advisor analysis. But that can vary widely depending on the animal’s breed and age, the type of coverage and the insurance company.
What To Do if Your Pet Insurance Policy Is Dropped
If you’ve been notified that your pet insurance policy will not be renewed, start shopping around for a new one. Compare several pet insurance quotes and plan options to get the cheapest pet insurance that offers the benefits you want. Keep in mind that most pet insurance policies have waiting periods for coverage. However, some companies may reduce the waiting period under certain circumstances, such as switching from another insurer.
You may also decide to skip pet insurance and put aside money for veterinary care instead. However, unexpected veterinary expenses can add up quickly, and pet insurance can give you peace of mind that at least some of those costs will be defrayed.
