Nationwide Dropping Pets

Nationwide blames the rising costs of veterinary care and other factors that are cutting into the profits of its pet insurance business.

Who will be dropped and when?

Nationwide has said that non-renewal notices will be sent out well in advance. Starting from now and the summer of 2025. They say non-renewals “are not associated with the pet’s age, breed or prior claims history.”

Really?

Nationwide is not getting out of the pet insurance business. This is a 4-billion-dollar business.

It is just paring away the pets and plans that they have to pay out more than they would like to.

Nationwide said it will focus on expanding its pet insurance reach through its partnerships with other companies, including Petco, Walmart and Unum.

Pet owners who have been dropped are either going to have to pay out of pocket for their pet's medical needs or find another pet insurance provider.

If you’ve been notified that your pet insurance policy will not be renewed, start shopping around for a new one. Compare several pet insurance quotes and plan options. Pay especially attention to waiting periods and exclusions.

You may also decide to skip pet insurance and put aside money for veterinary care instead. However, unexpected veterinary expenses can add up quickly, and pet insurance can give you peace of mind that at least some of those costs will be defrayed.

Finding other insurance maybe be difficult, especially for older pets and pets with pre-existing conditions. Severe health conditions may even cause your pet to be uninsurable.

If you are considering a new policy for your older dog or cat, you might want to look at plans from ASPCA. They list up to 20 years for dogs and cats.

There are other insurers but most have age cut offs at around 10 years for full coverage. At Embrace pets 15 years and older at enrollment are eligible for an accident-only insurance policy.

♦ Plans for older pets will be pricey and have restrictions regarding pre-existing conditions.

Before enrolling in any new plan be sure to understand if there is an annual maximum limit and how pre-existing conditions are defined.

ASPCA for example explains pre-exiting conditions like this:

Most pet insurance plans do not cover pre-existing conditions, which are conditions that occur before coverage begins or during a waiting period. However, we will no longer consider a condition to be pre-existing if it has been cured and free of symptoms and treatment for 180 days, with the exception of knee and ligament conditions. If a knee or ligament condition occurs before the coverage effective date or during a waiting period, any future ones won’t be covered.

Don’t despair

Don’t be sad if you have to drop Woofy’s insurance. Setting aside a little money every month for emergencies can work just as well for most people, especially if you have a smaller dog or cat.

Only about 4 percent of pet owners have pet insurance. The vast majority of pets do not have insurance.

Check out one of our other articles Best Pet Insurance.

Pet care credit card

Many veterinarians offer specialty credit cards sold by outside companies, such as the CareCredit card.

♦ The Consumer Finance Protection Bureau issued a report in 2023 that did not speak favorably about these types of credit cards.

These products are often offered by a trusted provider when their patients are under significant stress.

These specialty credit cards are also appearing in doctor’s offices and in hospitals.

• Patients appear to not fully understand the terms of the products and sometimes end up with credit they are unable to afford.

Many of these credit cards offer people deferred interest, or springing interest, terms for a time period of between six and eighteen months.

If someone has a remaining balance after the designated promotional period, they could be charged all the interest that would have accrued since their original purchase date.

♦ These products are typically more expensive than other forms of payment due to the higher interest payments.

People paid $1 billion in deferred interest payments on these types of cards from 2018-2020. This is a pretty big business so expect to see more of these specialty credit cards.