Why Pet Insurers are Dropping Customers
Insurance is on many people’s minds, whether it be rising auto insurance rates, or homeowners insurers pulling out of certain states — including California, in some cases. One company also recently made news by dropping around 100,000 pet insurance policies, too. That’s something that many pet owners with pet insurance may not have ever considered a possibility.
In June, Nationwide — the country’s largest provider of pet insurance policies — announced that it was cancelling coverage for a hundred thousand pets around the country. The reasoning, as the company explained in a statement, had to do with maintaining “long-term viability and profitability,” and the canceled or non-renewed policies were “not associated with the pet’s age, breed, or prior claims history.”
Further, the company points to rising costs as the primary reason that it’s dropping so many policies.
“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,” the statement says.
Accordingly, if you’re a Nationwide pet policy holder, you should find out if you’re affected by the changes in writing — so, keep an eye on your mailbox.
Zooming out, it’s important to realize that this isn’t just about pet insurance. It’s all types of insurance, as noted. Auto insurance policies had increased almost 20% year-over-year in June, according to the most recent Consumer Price Index numbers from the Bureau of Labor Statistics. And homeowners insurance companies are leaving numerous states altogether — something that’s not a surprise to many people in California — and the list includes Colorado, Louisiana, South Carolina, and more.
So, yes, if you have a pet insurance policy that’s being canceled or not renewed, this can feel personal. But in the grand scheme of things, it’s not, it’s merely the insurance industry trying to find new footing. Unfortunately, that can cause problems for the customers who are getting cut out or left behind.
Finding a New Pet Insurance Policy
If you’re one of the thousands of pet owners who has lost coverage for your pet, you’ll want to look around and see what your options are. We have recommendations that you check out, and additional resources that you may find helpful:
Southpaw’s Recommended Pet Insurance Companies:
Further resources:
We also think it’s important to remember that there are financial assistance options out there for people who need to find veterinary care for their pets but are worried about the costs, and we absolutely recommend that you check out a pet insurance policy.
Beyond that, remember to do some basic homework about what you’re buying. We previously wrote a blog post on this very topic, which may prove helpful. The gist of that post is that you’ll want to think about the different levels of coverage you’re shopping for (comprehensive, accident-only, or wellness), and know some of the ins and outs of pricing. Reading reviews can be helpful, too.
If you need further help, or have any questions, you can always give us a call and we’ll do our best to help you figure out next steps!
Contact us to make an appointment today!
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