Last week, the insurance company Nationwide announced that it was canceling coverage for about 100,000 animals across the country, citing rising veterinary costs.
In a statement on Friday, Nationwide said that it was canceling thousands of coverage plans starting immediately and will continue through next summer as it looks to “maintain long-term viability and profitability.”
“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,” Nationwide said.
The company shared that its decision to cancel coverage had nothing to do with a pet’s breed, age, or prior claims. Those impacted will also be notified in writing before their coverage ends.
As a NerdWallet survey found in February, 24% of pet owners currently have pet insurance, and Nationwide was found to be the best provider for those with exotic pets.
Pet insurance typically covers pet injuries, illnesses, and general well-being. Pet owners typically spend $676 a year for dogs and $383 for cats for the most common type of policy, NedWallet reported.
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