Nationwide Pet Insurance Under Fire: What Dog Owners Need to Know About Dropped Coverage

Hook: Is your dog’s health coverage at risk? Recent changes at Nationwide Pet Insurance are leaving thousands of dog owners worried about their pets’ future healthcare. With Nationwide dropping approximately 100,000 pet insurance policies, many are scrambling to understand their options and ensure their furry friends remain protected.

The Shocking News: Nationwide Cancels Policies

Nationwide Pet, a leading pet insurer in the U.S., announced it would not renew approximately 100,000 policies starting in the spring of 2024, continuing through the summer of 2025. The company cites “inflation in the cost of veterinary care and other factors” as the reason for these difficult underwriting changes. This decision has sparked outrage and concern among pet owners, many of whom rely on these policies to manage the high costs of veterinary care.

Why is Nationwide Dropping Coverage?

According to Nationwide, the cancellations are necessary “to maintain long-term viability and profitability.” The escalating costs of veterinary care are cutting into their profits, leading to what they call “difficult actions” to ensure the financial sustainability of their pet insurance business.

Inflation in Veterinary Care: The cost of vet services, medications, and procedures has been steadily rising, making it more expensive for insurance companies to cover these expenses.
Underwriting Changes: Nationwide is making adjustments to its underwriting process, which includes re-evaluating risk and plan availability in certain states.
Profitability Concerns: Like any business, insurance companies need to remain profitable. Dropping policies is a way for Nationwide to reduce its financial risk and ensure it can continue to operate.

Who is Affected?

The cancellations will affect approximately 100,000 pet owners across the country. While Nationwide states that these decisions are “not associated with the pet’s age, breed, or prior claims history,” many pet owners in online forums report that older pets and those with pre-existing conditions are disproportionately impacted.

What Dog Owners Need to Know

If you’re a Nationwide pet insurance policyholder, here’s what you need to know:

Notification: Impacted policyholders will be notified in writing ahead of time. Keep an eye on your mail and email for official communication from Nationwide.
Cancellation Timeline: The cancellations are rolling out from the spring of 2024 through the summer of 2025. Check your notice for the exact date your coverage will end.
Coverage During the Term: Nationwide has stated that it will “fully stand by the protections for which [policyholders] have paid through the end of their current term.”
Switching Plans: Unfortunately, if you receive a non-renewal notice, switching to another Nationwide plan might not guarantee coverage for pre-existing conditions. A condition previously covered might now be considered pre-existing, even if you enroll in a new Nationwide plan.

What Are Your Options if Your Policy is Dropped?

Losing your pet insurance coverage can be stressful, but you have several options to explore:

Shop Around for New Insurance:
- Compare Quotes: Get quotes from multiple pet insurance companies to find the best coverage and rates.
- Consider Alternatives: Explore other pet insurance providers like MetLife, Pets Best, Trupanion, Embrace, and Figo.
- Check Coverage Details: Carefully review the policy details, including what’s covered, exclusions, deductibles, and reimbursement levels.
Understand Pre-Existing Conditions:
- Be aware that any conditions your dog has been treated for or diagnosed with may be considered pre-existing by a new insurer and excluded from coverage.
- Some insurers, like Pets Best and Lemonade, cover curable pre-existing conditions that coincide with their policy.
Explore Pet Insurance Alternatives:
- Veterinary Discount Plans: Consider discount plans like Pet Assure or United Pet Care, which offer savings on vet bills at participating clinics.
- Emergency Fund: Start a dedicated savings account for pet emergencies. While it may take time to build up, it can provide a financial cushion for unexpected costs.
- Credit Card: Have an emergency credit card ready for vet expenses.
- Charitable Organizations: Look into animal charities like Pets of the Homeless, The Pet Fund, and The American Veterinary Medical Foundation, which offer financial assistance for veterinary care.
- Low-Cost Clinics: Check for animal welfare organizations, local shelters, and rescue groups that offer veterinary services at reduced prices.
Consider a Wellness Plan:
- If your primary concern is routine care, a wellness plan can help cover the costs of vaccinations, check-ups, and other preventive services.
Consult with Your Veterinarian:
- Talk to your vet about the best ways to manage your dog’s healthcare costs and explore payment options.

Legal Options and Recourse

If you believe Nationwide has acted unfairly or in bad faith, you may have legal options to consider:

File a Complaint:
- State Department of Insurance: File a complaint with your state’s Department of Insurance. Most departments allow consumers to file complaints online, by mail, or over the phone.
- Better Business Bureau: File a complaint with the Better Business Bureau.
Send a Demand Letter:
- Consider sending a formal demand letter to Nationwide, outlining your concerns and what you seek as a resolution. This can be a precursor to legal action.
Sue in Small Claims Court:
- If a demand letter doesn’t resolve the issue, you can sue Nationwide in small claims court. This is a relatively inexpensive and straightforward way to pursue legal action.
Consult with an Attorney:
- If you believe your claim was wrongfully denied or that Nationwide acted in bad faith, consult with an attorney experienced in insurance disputes. An attorney can help you understand your legal rights and options.
- An insurance lawyer can help explain the details of a policy so an individual can determine the best fit for their needs and budget.

Tips for Choosing a New Pet Insurance Policy

When selecting a new pet insurance policy, keep the following tips in mind:

Read the Fine Print: Understand what’s covered and what’s excluded. Pay close attention to pre-existing conditions, waiting periods, and coverage limits.
Check Customer Reviews: Research the insurance company’s reputation and customer service record. Look for reviews on websites like Yelp, Google, Trustpilot, and the Better Business Bureau.
Consider Your Budget: Balance the cost of the policy with the coverage it provides. Choose a deductible and reimbursement level that you can afford.
Think Long-Term: Consider your dog’s age, breed, and health history when selecting a policy. Look for a policy that will meet your dog’s needs as they age.

Nationwide’s Response

Nationwide has stated that the cancellations “are in compliance with the law and their contracts.” However, they have not provided specific details about reimbursements or how they will assist pet owners in finding alternative coverage.

Conclusion

The decision by Nationwide Pet Insurance to drop coverage for approximately 100,000 pets has left many dog owners feeling betrayed and uncertain about the future. While Nationwide cites rising costs as the reason, it’s crucial for dog owners to understand their options and take proactive steps to protect their pets’ health. By exploring alternative insurance plans, considering pet insurance alternatives, and understanding their legal rights, dog owners can navigate this challenging situation and ensure their furry friends receive the care they deserve.

Call to Action: If you’ve been affected by Nationwide’s policy cancellations and are unsure of your next steps, contact us today for a consultation. We can help you understand your rights and explore your legal options.