What Happens if My Pet Insurance Is Canceled?

Can Your Pet Insurance Be Canceled?

Your insurer can cancel your pet insurance for reasons within or outside your control. (Cancellation terminates your insurance coverage before the policy term is over. Nonrenewal means the company opts not to renew your policy when the term ends.) If your insurance company decides to cancel or not renew your pet insurance, they are typically required to notify you well in advance and explain their decision.

There are several reasons your pet insurance may be canceled or not renewed (more on that in a moment). For example, Nationwide said its decision was based on factors including the rising cost of veterinary care, and is necessary to keep the company financially stable.

Why Was My Pet Insurance Canceled?

Pet insurance can be canceled for a variety of reasons.

You Didn't Pay Your Premiums

Nonpayment of premiums is a common reason insurance may be canceled. You can sometimes get your policy reinstated by bringing your account current and requesting reinstatement within a certain time after being notified of the cancellation.

If you have trouble remembering to pay monthly pet insurance premiums, consider paying your annual premium in full or setting up autopayment to prevent cancellation.

You Put Inaccurate Information on Your Application or Claim

Falsifying information on your pet insurance application or on a claim can be grounds for canceling your policy. Even if you didn't purposely lie, accidentally leaving out information or providing incorrect information could cause your insurer to cancel your policy.

You Didn't Comply With the Policy Terms

Reading legal documents is no one's idea of fun, but it's important to review the details of your pet insurance policy. This contract explains all the rules you must follow to keep your coverage in place. For example, you might need to have your pet examined by a vet within 30 days of purchasing coverage, or document that your pet has annual physical and dental exams.

Your Insurance Company Stopped Selling Policies

Insurers sometimes stop selling certain types of policies or issuing policies in certain states. Typically, this happens when the risk of claims is so high that the insurance is no longer profitable. For instance, several major insurance carriers have stopped selling new homeowners insurance policies in California due to increased risks, such as wildfires. Nonrenewal notices Nationwide pet insurance policyholders have shared with the media indicate the company has stopped issuing pet insurance in their states, although Nationwide hasn't confirmed this.

When the end of your policy term rolls around, your pet insurance might deny renewal for any of the reasons above, or for more ambiguous reasons. For example, one pet insurance company's contract states they may choose not to renew policies due to "a material change in the condition, factor or loss experience material to insurability."

Pet insurance isn't governed by the same laws as human health insurance; if your pet presents a high risk of claims, it's possible your coverage won't be renewed.

What to Do if Your Pet Insurance Policy Is Canceled

Having your pet insurance canceled can present a challenge, but there are solutions. Here's what to do.

Review The Cancellation Notice

Make sure you understand why your pet insurance was canceled. Note the date your coverage will end; you'll need an alternative solution by then.

Contact Your Insurance Company

Whether you believe the cancellation was in error or you failed to pay your premiums, it doesn't hurt to talk to your insurance company. They may suggest other coverage options or ways to get your policy reinstated. If you didn't pay your premiums, for instance, bringing your account current might be enough to reinstate your coverage.

Consider Your Pet's Veterinary Care Needs

Based on your pet's medical history, evaluate what coverage they're most likely to need. For example, you might want a wellness plan to help pay for an older cat's dental cleanings, or accident coverage if Fido loves eating socks.

Get Insurance Quotes

Once you know what coverage your pet needs, visit pet insurance websites to see what they offer. Look for a sample policy on the insurer's website and review to see exactly what's covered and excluded. Eliminate providers who don't meet your needs and get quotes from the rest. Compare prices for the same coverage, reimbursement rates, deductibles and plan maximums.

Look for Ways to Save

When your pet insurance is canceled, you may end up paying more for less coverage, especially if you have an older pet or one with chronic health problems. Pet insurance typically gets more expensive as pets get older. And while preexisting conditions such as cancer or heart disease won't keep your pet from getting insurance, the condition won't be covered, which means paying for treatment out of pocket.

You can save on pet insurance by increasing your deductible, lowering your reimbursement rate, or looking for discounts through membership organizations or your job. Some employers even offer pet insurance as an employee benefit.

Choose a Policy and Enroll

Once you've found a pet insurance policy that works for you, enrollment is easy. Just provide some information about your pet and yourself, then pay your premium. You can typically pay monthly, quarterly, semiannually or annually. Note any waiting periods before you can use your pet insurance.

Consider Other Ways to Pay

If you can't find affordable pet insurance after your coverage is canceled, here are some other ways to pay for your pet's veterinary care.

• Start a pet care savings account. Putting your veterinary emergency fund in a high-yield savings account can help the money grow faster.
• Get a personal loan. Personal loans usually offer lower interest rates than credit cards and have fixed monthly payments. This can be more manageable than paying big vet bills with credit cards.
• Crowdfund for care. You can try GoFundMe or use a pet-specific crowdfunding platform, such as PetFundr or Waggle, to solicit donations for your pet's treatment.
• Check out local veterinary schools. They sometimes provide low-cost veterinary care.
• Seek help from charitable organizations. The Pet Fund, RedRover and Frankie's Friends are among the nonprofits that fund veterinary care for pets whose owners can't afford it.

The Bottom Line

Having your pet insurance canceled is an unpleasant surprise, but a little research may uncover a new policy that's even better. Once the new coverage is in place, adjust your pet care budget to accommodate your new premiums.