Some customers who paid for pet insurance coverage from Nationwide are trying to settle and seek some action against the insurer for its plan not to renew coverage for about 100,000 pets.
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A recent study shows by 2030, there could be 15,000 fewer veterinarians than are needed to care for the number of pets in the United States.
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Christie Keith has been paying $600 a month in pet insurance premiums to insure her dogs for years and bumped that up to more than $700 recently to add coverage for her 4-year-old Silkan Windhound, Pip.
But a few weeks ago, the protection plan for his pets came under fire when Nationwide Insurance announced it would cancel coverage for about 100,000 pets nationwide, blaming the rising cost of care. at the vet and other factors that reduce its pet insurance income. business, the company said in a statement on June 14.
The move leaves thousands of pet owners in a difficult position, because — even though Nationwide says age and prior claims history aren’t a factor — many of the policies that is for older pets with pre-existing conditions that may not be insured elsewhere.
For Keith, a 65-year-old freelance writer who lives in Davisburg, Michigan, the problem is especially worrisome because his elderly dogs both recently needed medical treatment. Ros, a 10-year-old Silken Windhound, has been hospitalized twice and continues to suffer from an unspecified illness, while Harper, an 8-year-old Scottish Deerhound, is being treated for an injury to back.
He 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 on his dogs will expire as the renewal dates hit and that he will not be able to get lower policies from them for his dogs.
“I was willing to pay this very large amount to get this coverage because I love my dogs. They’re my family. They are not like a car, or even a house, or a thing that can replace or rebuilt, they are important to me,” Keith told USA TODAY. “No one else will take in old dogs with pre-existing conditions and even if they do they’ll 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 dental cleanings, as well as treatment for accidents and illnesses.
Some plans will also pay for behavioral issues like aggression and have health coverage for services like grooming. Also possible coverage: medically necessary euthanasia.”If this is something you want to be sure of, then check before taking out the policy. Some plans offer burial or cremation as optional add-ons,” NerdWallet personal finance expert Kimberly Palmer told USA TODAY.
Many policyholders get 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 it’s available, pet insurance can give pet owners much-needed peace of mind when it comes to protecting their finances from unexpected pet-related medical expenses, Palmer said.
The average cost for pet insurance is about $53 a month for dogs and $32 a month for cats, with those costs increasing as the pets age, according to NerdWallet .
Pet insurance, like coverage for people, usually has deductibles and coverage limits. So if you have a $500 annual deductible, you have to pay the first $500 in bills that year before your policy starts paying out. And, depending on the plan, it may only pay a portion, NerdWallet said.
Why does Nationwide Insurance cancel some pet insurance policies?
Nationwide claims to be the first and largest provider of pets in the US with more than 1.2 million dogs, cats, birds and exotic pets insured for medical, accident and injury coverage. But the company said it must act “to maintain long-term profitability and profitability,” Nationwide said in that statement released June 14.
“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 – tough actions necessary to ensure a financially sustainable future for our line of pet insurance business,” Nationwide said, adding that it has paid claims worth “billions of dollars over the past four decades.”
Insurance costs are rising. In some cases, homeowners are out on the range because the price has risen so high. Similarly, auto insurance will increase by 26% in 2024.
“We certainly sympathize with the disappointment felt by many of our pet families and will fully stand by the protections they have paid for at the end of their current term,” Nationwide’s statement said. “Our rates will continue to be fair and appropriately priced for the plan, pet, and breed.”
What accounts may be affected?
The company said non-renewal decisions were “not related to the pet’s age, breed or previous claims history.”
Nationwide did not respond from USA TODAY to a request for more information about the characteristics of non-renewable pet insurance policies.
Apparently, where pet owners live plays a part, based on a letter Nationwide sent to Robin Tobias of Aventura, Florida in April. In the letter, Nationwide said coverage for her dog Ginger would not be renewed.
“After a 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, shared by Tobias with The Columbus Dispatch, part of the USA TODAY Network. “The same economic pressures from inflation, higher interest rates and increases that have caused unprecedented losses for the American insurance industry are also affecting the pet industry, leading to difficult decisions such as this.”
Many of the pet owners and policyholders who 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 what legal action could be taken against Nationwide.
“Pet owners are thinking of euthanizing sick pets because they’re uninsured, and all they can say is they need to make more money, it’s too bad,” Tobias said.
Most pet insurance policies don’t cover pre-existing conditions, says NerdWallet’s Palmer.
“So if your pet has pre-existing conditions, you may be better off considering other options, such as saving early for potential future medical needs,” she says. “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 drop some pet insurance policies?
Affected policyholders are notified in writing of Nationwide’s plans. The company began sending letters to policyholders this spring and will continue through the summer of 2025.
As in the case of Keith and his three dogs, most policyholders commenting online about the situation say their coverage will end at the end of the current policy.
For Tobias, coverage for Ginger, a 7-year-old dog with a heart murmur, ends on July 23. Tobias pays about $160 a month for insurance; he bought the coverage when his dog was a puppy.
He’s already found another company that he believes will take Ginger, but he’s worried that 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 can’t afford to care for their pets and can’t get coverage from other insurers.
“That’s why you get insurance,” he said. “Down the road, you’re doing to need it. It’s really horrible.”
“For us, dogs have become our children. Everything we do is to protect our children.”
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