Nationwide — the country’s largest provider for pet insurance — is dropping coverage for approximately 100,000 policyholders. The cancellations have already started June 14 and will continue through summer 2025.
Nationwide blamed inflation for these steps. The company said this action will enable it to “maintain long-term viability and profitability.”
“As pet lovers ourselves, we understand the emotions connected to the protection of our family pets,” Nationwide said in a statement. “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.”
While Nationwide said the policies being tossed are not associated with a pet’s age, breed or prior claims, USA TODAY reported many of the policies are for older pets with prior conditions who may not be able to be insured elsewhere.
According to a NerdWallet survey released earlier this year, about 24% of pet owners have pet insurance which can cover routine care as well as treatment for illnesses and injuries. The average annual cost for pet insurance for dogs is $676 and $383 for cats.
Over half of those surveyed said they purchase pet insurance for the “peace of mind.” But now that peace is being taken away for many pet owners.
