Nationwide says it's dropping thousands of pet insurance policies due to inflation

Taking care of pets is becoming increasingly difficult for many Americans as pet insurance providers struggle to keep up with rising costs in veterinary care. Nationwide Pet, the largest pet insurance provider in the country, has announced that it will be dropping approximately 100,000 policies by next summer. This move comes at a time when obtaining various types of insurance, from homeowners to vehicle insurance, has become more challenging for many Americans. Nationwide cited inflation in veterinary care costs as a significant factor behind their underwriting changes and the withdrawal of some products. The impacted policyholders will be notified in writing, and Nationwide reassured them that they will continue to provide coverage until the end of their current term. The increasing prices of insurance policies are putting additional financial strain on pet owners, who are already affected by persistently high inflation rates. In particular, rising instances of “economic euthanasia” have raised concerns. Vehicle insurance costs have risen by 20.3% over the past year, while home insurance prices have also increased due to extreme weather events caused by climate change. These rising costs are being passed down to consumers as insurance companies face higher replacement costs and re-insurance expenses. Some insurers have even halted issuing policies in certain states.