If you’re the type of insurance shopper that wants to do business with a well-established company rather than an upstart, Erie Auto Insurance is for you.
Erie was founded way back in 1925 and is now competing with the big guys even though they only operate in 12 states and the District of Columbia and in fact, they are currently ranked as the eleventh largest auto insurance company in the U.S.
So then, you have to wonder, how did Erie grow to be number 11 when they operate in only 25% of the country? In this article, we’ll drill down into Erie Auto Insurance and find out what makes them so good.
NOTE: We are not Erie Auto Insurance. If you need to contact Erie about your policy or claim, you can reach them at (800) 458-0811 or through their website at erieinsurance.com.
Home office Address
Erie Insurance Group
100 Erie Insurance Place
Erie, PA 16530-1104
Table of Contents
About Erie Auto Insurance
Although profits are important to every insurance company, Erie operates differently than most of its competitors. They believe if they put their policyholders and their policyholders’ communities first, the profits are bound to follow.
Erie also considers its 12,000 independent agents who distribute their insurance products an important part of their communities as well. They understand that any amount of disappointment their policyholder’s experience will negatively affect those agents because they are the face of Erie in each neighborhood.
Most policyholders are likely unaware that Erie has been a member company of the Fortune 500 list of companies since 2003 and Erie customers are probably never surprised to learn that the company has ranked the highest in customer satisfaction for the seventh straight year by J.D. Power.
Erie offers much more than Auto Insurance
Like many insurance companies, Erie offers a complete portfolio of insurance products for individuals and businesses. This makes them a great resource for one-stop-shopping for any type of insurance product that individuals, families, and businesses may need.Here is a current list of insurance products that Erie offers:
|Home & Auto||Home & Property||Life & Health|
|Auto Insurance||Homeowners||Term Life Insurance|
|Motorcycle Insurance||Renters||Whole Life Insurance|
|Classic Car Insurance||Condos||Universal Life|
|Boat Insurance||Mobile Homes||Medicare Supplement|
|RV Insurance||Personal Articles||LTC Insurance Riders|
|ATV and Golf Carts||Flood Insurance||Retirement Plans|
It’s important to note that when your auto insurance company has other products to offer, you will typically get a substantial discount when you purchase 2 or more policies.
Erie Insurance Company Ratings
We always warn our clients about doing business with a company that is either not rated or its rating has been reduced recently. Insurance is a promise to pay in return for a premium and the insurance company’s financials must be in very good shape to keep its promise if you file a claim. Erie’s ratings are among the best:
- A.M. Best – A+ Superior
- J.D. Power – Ranked #1 for Overall Customer Satisfaction
- National Association of Insurance Commissioners – 8 out of 10 for claims satisfaction
Erie Insurance Auto Insurance Policy
Like other well-known national carriers, Erie uses the Personal Auto Policy form as the basis for its auto insurance and then offers additional riders that will help vehicle owners broaden their coverage to meet their individual needs.Here’s what’s in the Personal Auto Policy:
|Bodily Injury Liability||Pays for injuries to other drivers or passengers in an at-fault accident subject to the limits in the policy.|
|Property Damage Liability||Pays for repairs or replacement of another person's vehicle or property during an at-fault accident subject to the limits of the policy.|
|Medical Payments||Medical Payments covers medical expenses for you and other passengers in your vehicle in an accident no matter who's at fault. This coverage will even cover you for injuries sustained in another person's vehicle or as a pedestrian up to the limit in the policy.|
|Personal Injury Protection (PIP)||PIP covers the driver, all passengers, or a pedestrian involved in an accident no matter who's at fault. PIP helps pay for medical expenses, lost wages, loss of services, and funeral expenses up to the policy limits. This coverage is typically mandatory in "no-fault" states.|
|Uninsured/Underinsured Motorist||Uninsured/Underinsured motorist covers your medical expenses if the other driver (at-fault) is uninsured or underinsured. Some states also allow uninsured/underinsured property damage that covers your vehicle as well.|
|Comprehensive Coverage||Comprehensive coverage pays to repair or replace your vehicle after a non-collision event such as fire, vandalism, theft, or acts of nature subject to your deductible.|
|Collision Coverage||Collision coverage pays to repair or replace your vehicle after an accident that involves another vehicle or object subject to your deductible.|
|Emergency Roadside Assistance||Roadside assistance is available if you are locked out of your vehicle or required roadside assistance like a tire change or fuel for an empty tank. Your coverage for each event is subject to the limit you purchased on your policy.|
|Rental Reimbursement||Rental reimbursement helps pay for rental expenses if you are in an at-fault accident or|
hit by an uninsured driver. Most policies will have a limit per-day and per-accident.
When you want more than generic auto insurance, Erie offers optional coverages that will make certain that you and your vehicle are properly protected:
- Accident Forgiveness: When you sign up with Erie Auto Insurance, the company promises not to jack up your rates because of your first at-fault accident after you’ve been a safe driver for at least 3 consecutive years. There is no additional charge for this money-saving feature.
- Personal Property Coverage: Erie’s standard auto policy also includes coverage for up to $350 of personal property that is in your vehicle if you’re in an accident or your car is stolen.
- Windshield Repair: If your windshield is cracked and found to be repairable, Erie will pay 100% of the cost.
- Gap Coverage: If your vehicle is considered a total loss, Erie will pay the difference between the actual cash value of your car and the balance of your loan or lease.
- Pet Injury Coverage: Also included in Erie’s standard policy is an additional $500 to pay a veterinarian if your dog or cat is injured in a car accident.
- New or Better Car Replacement: If your car is totaled in a car accident, Erie will pick up the tab for you to get your model vehicle but up to two years newer than the totaled vehicle.
- Rate Lock: Erie policyholders have the option of adding the Rate Lock rider when they purchase an insurance policy. With this option, Erie will only increase your rates if you add or remove a car or driver or change your address. Other than that, your rates will remain the same year after year (if you are in an at-fault accident, your rates will catch up with the next update of your policy.)
Erie Auto Insurance Discounts
In addition to Erie’s very competitive auto insurance rates, qualified applicants can receive discounts that can lower their insurance rates significantly:
- Multi-Car Discount: Policyholders will get a discount when they have more than one vehicle on their policy.
- Multi-Policy Discount: Erie customers who purchase two or more types of coverage will receive a substantial discount for bundling the policies.
- Pay-in-Full Discount: Policyholders receive an additional discount when they pay their insurance policy in full rather than monthly.
- Safety Equipment: Receive discounts if your vehicle is equipped with safety equipment that protects the driver and passengers in the vehicle.
- Low Mileage Discount: When you drive less than 10,000 per year you’ll pay less than normal rates.
Erie’s Auto Insurance Rates compared to other Popular Companies
To discuss insurance rates we’ll have to use data from national averages since insurance rates are calculated based on drivers and vehicles listed on the policy. Insurance underwriters collect a lot of data about all the drivers listed on the application and each vehicle that’s listed as well.Here’s how Erie’s rates compared to its competition based on national averages:
|Insurance Company||Average Annual Premium|
|Erie Insurance Company||$894|
|GEICO Insurance Company||$1,485|
The above-mentioned rates are based on national average policies where the policyholder has a Good Credit Score of 670 – 739. When the credit score is Very Good or Exceptional, Erie does even better.
The Bottom Line
As an independent insurance agency, we’ve certainly learned that there’s no perfect insurance company. Depending on your circumstances and budget, every company has its advantages and disadvantages.
However, when we consider Erie’s auto insurance rates along with the vast amount of consumer feedback that is available, we find that the only legitimate disadvantage of Erie Auto Insurance is that it is only available in 12 states.