Pet owners left scrambling after Nationwide axes insurance for 100,000 policyholders: 'You freak out'
Pet owners across the U.S. want answers after Nationwide announced it will not renew about 100,000 policies. This comes at a time when the price for veterinary care is also rising, according to NerdWallet.
Pet owners are angry, confused and panicking. Many are working to find a backup plan.
"It's like taking away your baby's insurance. If any of you have children, you know what that's like. So now just telling me, 'goodbye, we don't need you anymore' or 'we don't want you anymore because vet costs are going up, and insurance costs are going up,'" said Gary, father of two dogs, who did not want his full name used for safety reasons.
Gary lives in Las Vegas with his husband and two dogs, Fanny and Kate. Both dogs have been with Nationwide since they were puppies. After almost ten years of coverage, Gary received the bad news in the mail.
"I thought it was the renewal notice for the dogs and shocking – it said a notice of nonrenewal. And what do you do that day? You freak out. It's a Saturday. Everything is closed. I have to wait until Monday. And then when I called Monday, they said, 'yes, this is the decision we've made.' That's over 100,000 people have just been axed," said Gary.
For older dogs like Fanny and Kate, it's harder to find insurance companies, especially if they have preexisting conditions.
"I can't even imagine what the costs are going to look like at this point. That's the scary part. And are they going to cover them? Someone said to me, 'there are other plans out there.' I know AKC has something. I haven't applied yet, but they said after I do apply, they're saying it's a 365-day wait to get preexisting conditions covered. So what do I do for the next year? You're just left out in the cold. Thank you, Nationwide," said Gary.
When reached by FOX Business, Nationwide referred to its statement that blamed "inflation in the cost of veterinary care and other factors" for canceled policies. The company said the policies are not related to "the pet's age, breed or prior claims history."
While prices for vet care are increasing, experts with NerdWallet said pet insurance is still the way to save.
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"Overall, pet insurance is still relatively affordable compared to if you suddenly have to face unexpected costs for your pet. So, for example, if you have a dog, it's a little over $50 a month for pet insurance. For a cat, it's a little bit less, just around $30 a month. And so that, for a lot of people, is relatively affordable compared to facing a sudden expense. Like if your pet has an injury or needs some kind of extended medical care. And so that's why, for a lot of people, it does make sense to take out pet insurance. You have that peace of mind," said NerdWallet Personal Finance Expert Kimberly Palmer.
