Nationwide will not be on the side of 100,000 pet insurance policyholders after this year.
The insurance agency said the rising cost of veterinary care has forced it to withdraw its Nationwide Pet services in some states. Approximately 100,000 policies will not be renewed between now and the summer of 2025.
The impacted policyholders will be notified about the drop in coverage, but Nationwide said it will “stand by the protections for which they have paid through the end of their current term.”
Ages, breeds and prior claims history of the pets will not be factored into which policyholders get dropped, Nationwide said.
“We are proud that we consistently pay for covered claims each and every day, amounting to billions of dollars over the past four decades,” the insurance company said in a statement. “We are making these tough decisions now so that we can continue to be here for even more pets in the future.”
Nationwide Pet is known for offering insurance coverage for exotic animals in addition to cats and dogs but it has some of the highest premiums based on research conducted by U.S. News and World Report.
Most Americans own some kind of pet and consider them to be a part of their family, according to data from the Pew Research Center. But the cost of caring for these furry family members is becoming a financial burden.
Millions of pet owners opt for insurance policies to help offset unexpected health care costs for their animals. Most pet insurance plans offer reimbursement for covered incidents.
According to the U.S. Bureau of Labor Statistics, the price of urban veterinarian services continues to rise — driven in part by inflation and a nationwide shortage of veterinarians.
Mars Veterinary Health, a veterinary network with thousands of clinics, has said up to 55,000 additional veterinarians will be needed to meet the needs of companion animal healthcare in the U.S. by 2030.
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