Christie Keith has been paying $600 a month in pet insurance premiums to insure her dogs for years and recently increased that amount to more than $700 to add coverage for her 4-year-old Silkan Windhound, Pip.
But a few weeks ago, her pet protection plan fell apart when Nationwide Insurance announced it would cancel coverage for about 100,000 pets across the country, blaming rising costs of veterinary care and other factors that reduce the benefits of one’s pet insurance. activity, the company said in a statement on June 14.
The move leaves tens of thousands of pet owners in a difficult situation, because – although Nationwide says age and claims history are not a factor – many of these policies are aimed at older pets with pre-existing conditions that may not be insurable elsewhere. .
For Keith, a 65-year-old freelance writer who lives in Davisburg, Michigan, the dilemma is particularly troubling because his older dogs have both needed medical treatment recently. Ros, a 10-year-old Silken Windhound, has been hospitalized twice and continues to suffer from an undiagnosed illness, while Harper, an 8-year-old Scottish Deerhound, was treated for a back injury.
She began paying Nationwide for coverage for Harper in November 2017 and Ros in April 2021. Keith insured Pip, a 4-year-old Silken Windhound, in December 2023. Nationwide told Keith that the policies for his dogs would expire as that renewal dates would come and she couldn’t get lesser policies for her dogs from them.
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“I was willing to pay this very high amount for this coverage because I love my dogs. They are my family. They are not like a car, or even a house, or something that can be replaced or rebuilt, they are important to me,” Keith told USA TODAY. “No one else is going to take care of old dogs with pre-existing conditions and even if they did, they would rule out all pre-existing conditions. … I don’t know what I’m going to do.”
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What is pet insurance?
About 24% of Americans who own a cat or dog have pet insurance, according to NerdWallet. Depending on the policy, pet insurance may cover routine medical care such as heartworm treatments and teeth cleanings, as well as treatment for accidents and illnesses.
Some plans also cover behavioral issues such as aggression and offer wellness coverage for services such as grooming. Also possibly covered: medically necessary euthanasia. “If this is something you want to be sure about, check before purchasing the policy. Some plans offer burial or cremation as an option,” said Kimberly Palmer, NerdWallet personal finance expert. USA TODAY.
Many policyholders purchase pet insurance because they may not be able to fully cover the cost of a high emergency medical bill for their pet. More than half of pet owners surveyed for the NerdWallet report (57%) said they have pet insurance for “peace of mind.”
“When available, pet insurance can provide pet owners with much-needed peace of mind when it comes to protecting their finances from unexpected pet-related medical expenses. company,” Palmer said.
The average cost of pet insurance is about $53 per month for dogs and $32 per month for cats, with these costs increasing as pets age, according to NerdWallet.
Pet insurance, like coverage for humans, typically has deductibles and coverage limits. So, if you had a $500 annual deductible, you have to pay the first $500 of bills that year before your policy starts paying. And, according to the plan, he could only pay part of it, explains NerdWallet.
Why does Nationwide Insurance cancel some pet insurance policies?
Nationwide claims to be the first and largest pet provider in the United States with more than 1.2 million dogs, cats, birds and exotic animals insured for medical, accident and injury coverage. But the company said it needed to take steps “to maintain its long-term viability and profitability,” Nationwide said in a June 14 statement.
“Inflation in the cost of veterinary care and other factors have led to recent underwriting changes and product withdrawals in some states – difficult actions that are necessary to ensure a financially sustainable future for our industry pet insurance,” Nationwide said, adding that it has paid claims amounting to “billions of dollars over the past four decades.”
Insurance costs are increasing. In some cases, homeowners forgo coverage because the price has become too high. Likewise, car insurance increased by 26% in 2024.
“We certainly understand the disappointment felt by many of our pet families and will fully support the protections they have paid for through the end of their current term,” Nationwide’s statement said. “Our prices will continue to be fair and tailored to the plan, animal and breed.”
Which accounts could be affected?
The company said non-renewal decisions were “not associated with the pet’s age, breed or claims history.”
Nationwide did not respond from USA TODAY to a request for additional information about the features of the pet insurance policies that will not be renewed.
Apparently, where pet owners live plays a role, according to the letter Nationwide sent to Robin Tobias of Aventura, Fla., in April. In the letter, Nationwide said coverage for its dog, Ginger, would not be renewed.
“After careful review of our products, we have chosen to discontinue certain plans, including Whole Pet, which will no longer be offered in your state,” said the letter Tobias shared with The Columbus Dispatch, part of the network USA TODAY. . “The same economic pressures from inflation, rising interest rates and rising interest rates that have caused unprecedented losses for the U.S. insurance industry are also affecting the pet industry, leading to difficult decisions like this one.”
Many pet owners and policyholders who have joined a Facebook group called “Dropped By Nationwide Pet Insurance Whole Wellness” have older pets with pre-existing conditions. The group, which has more than 300 members, is considering legal action it could take against Nationwide.
“Pet owners are considering euthanizing their sick pets because they are uninsured, and all they can say is that they have to make more money, so too bad,” a Tobias said.
Most pet insurance policies don’t cover pre-existing conditions, NerdWallet’s Palmer said.
“So if your pet has pre-existing conditions, you might be better off considering other options, like saving in advance for possible medical needs down the road,” she said. “You can put what you would have paid in premiums into a high-yield savings account for your pet’s care. Another option is to find a veterinarian who will work with you on a payment plan.”
When will Nationwide discontinue certain pet insurance policies?
Affected policyholders will be informed in writing of Nationwide’s plans. The company began sending letters to policyholders this spring and will continue until summer 2025.
As in the case of Keith and his three dogs, most policyholders commenting on the situation online say their coverage ends when the current policy ends.
For Tobias, coverage for Ginger, a 7-year-old dog suffering from a heart murmur, ends on July 23. Tobias pays about $160 per month for insurance; She bought the blanket when her dog was a puppy.
She found another company that she thinks will cover Ginger, but she worries others won’t be so lucky. Tobias is particularly concerned about older pets with health problems who may be abandoned by their owners because they cannot afford to pay for their pets’ care and cannot obtain coverage from another insurer.
“That’s why you get insurance,” she said. “At the end of the day, you need it. It’s really horrible.”
“For us, dogs are our children. Everything we do is to protect our children.”
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