Pet owners in Florida and across the U.S. are suddenly faced with an unexpected problem after Nationwide, the nation’s largest pet insurer, dropped pet insurance coverage for about 100,000 U.S. pets, citing rising veterinary costs and “other factors” that threaten its long-term viability and profitability.
“As pet lovers ourselves, we understand the emotions involved in protecting family pets. Rising veterinary care costs and other factors have recently led to changes to underwriting terms and restrictions on plan offerings in some states. This is a difficult step that is necessary to ensure a financially sustainable future for our pet insurance business,” the company said in a statement on Wednesday.
The company began sending letters to policyholders several months ago and plans to continue doing so through the summer of 2025.
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Pet owners with pre-existing conditions may not have a choice
“After careful review of our products, we have decided to discontinue certain plans, including Whole Pet. These plans will no longer be offered in your state,” reads a letter to Robin Tobias of Aventura, Florida, who was notified that her dog Ginger’s insurance would not be renewed. Tobias shared the letter with the Columbus Dispatch. “Economic pressures from inflation, rising and escalating interest rates have caused unprecedented losses for the U.S. insurance industry but are also impacting the pet industry, leading to this difficult decision.”
A Facebook group called “Have you been terminated by Nationwide Pet Insurance Whole Wellness? Join us!” currently has 360 members. According to USA TODAY, the group is considering legal action.
“Pet owners are considering euthanizing their sick pets because they don’t have insurance. They just have to make more money. It’s a shame,” said Tobias, who pays about $160 a month for insurance for her 7-year-old dog, Ginger, who has a heart murmur. “There are a lot of people panicking.
“To us, our dogs are our children. Everything we do is to protect them.”
Florida’s insurance crisis includes dogs
Florida has seen its insurance industry collapse in recent years, is expecting a busier than normal hurricane season, and homeowners are already paying more than four times the national average for home insurance.
More than a dozen insurers have either withdrawn from the state or filed for bankruptcy since 2019. Farmers Insurance stopped writing insurance in Florida, and major insurers are not renewing policies on high-risk homes.
Meanwhile, Floridians pay the third-highest auto insurance rates in the country, behind Louisiana and New York, according to MarketWatch.
