In a recent announcement, Nationwide Pet, the country’s largest provider of pet insurance, revealed plans to drop about 100,000 policies by next summer due to soaring costs in veterinary care. This move reflects a broader trend of insurance becoming harder to obtain for many Americans, including homeowners and vehicle owners.
According to Nationwide, the decision was necessary to ensure a financially sustainable future for their pet insurance business. Impacted policyholders will receive written notifications about the changes, and the company has pledged to stand by the protections for which they have already paid.
The rising costs of insurance, including vehicle insurance which increased by 20.3% in the past year, are putting a strain on American families’ wallets. Factors such as rising car repair costs and more severe car accidents contribute to the uptick in premiums. Additionally, the home insurance market is facing challenges due to climate change, impacting the affordability and availability of coverage in areas vulnerable to extreme weather events.
Insurers are passing on the higher costs they face from increased replacement costs and re-insurance to consumers. Some insurers in states like California and Florida have even stopped issuing new policies altogether. This confluence of factors is creating a difficult financial environment for many Americans, who are grappling with rising insurance costs across the board.
