Erie Auto Insurance ReivewThursday, 25 July 2013 17:25
Erie Insurance is the 15th largest auto insurer in the United States and the 2nd largest in Pennsylvania, and offers several different home, commercial and auto policies. Erie sells insurance throughout 11 states and is headquartered in Erie, Pennsylvania. The insurer has a reputation for excellent customer service and consistently leads the insurance industry in customer satisfaction surveys. Erie offers a large range of insurance products and many discounts for its auto policy holders and is a quality auto insurance option for insurance seekers living in one of the company’s 11 state markets.
Company Background Information
Erie Insurance was founded in 1925 and first sold auto insurance primarily. In 1953 the company opened a second branch in Silver Spring, Maryland, and in 1995 it was listed on NASDAQ. Erie’s regularly growing revenue allowed it to become a Fortune 500 company in 2003. The company is known for purchasing the naming rights to Erie Arena, a multi-purpose indoor sports arena.
Erie markets its insurance products through its network of independent insurance agents and has sold many of its products through word of mouth marketing. In 2013 the company had 4.6 million active policies for auto, home and commercial insurance and was represented by over 2,000 insurance agencies. The headquarters and field offices employ over 4,500 people.
Erie was rated 4 out of 5 by J.D. Power for auto claims satisfaction, and has consistently received praise for its high customer satisfaction ratings. In 2011 and 2012 the company was one of only 50 in the United States to be named a Customer Service Champion by J.D. Power for its high customer satisfaction. Erie is also known to be a financially sound company with an A+ (Superior) rating from A.M. Best, and the life insurance branch is rated A.
Pros of Erie Car Insurance
- Excellent customer service ratings from third party review companies and customers
- Multiple auto insurance discounts available along with other insurance products
- Multiple auto coverage options that can be customized and unique benefits
Cons of Erie Car Insurance
- Not available in every state
- May have higher premiums than other providers
Erie offers a large number of discounts to keep its premium rates as low as possible for its customers. Erie offers an impressive array of insurance discounts, but these discounts vary based on the state. Erie’s discounts include:
- First accident forgiveness for those who qualify – customers will not be charged an increased premium for their first at fault accident
- Multiple policy discounts for purchasing life or home insurance
- Multi-car discount for customers who have two or more vehicles insured in the same household
- Safe driver discount for new customers who are claims free for three to five years
- Young driver discounts for single drivers under the age of 21 residing with their parents - young drivers are also eligible for the driver training discount for completing an approved training course.
- Drivers age 55 or older are eligible for an age 55+ discount
- Accident prevention discount for drivers in certain states who are claims free and complete an accident prevention course
- Low mileage discount for vehicles that are not driven often
- College student discounts for college students that spend most of their time at school
- Full payment discounts for paying premiums upfront
- Car safety discounts for anti-lock brakes and other safety features
- The Pioneer Experience Rating Credit is available to customers who have been with the company for three years without any claims.
- The Feature 15 discount is available to customers who have been policy holders for at least 15 years. These customers are never subject to premium increases for an at fault accident.
Types of Insurance Offered
Erie’s main auto insurance products include the following six types of vehicle coverage:
- Bodily injury payments which covers any court costs or legal fees for claims brought against a person for bodily injury
- Medical expenses coverage for injuries sustained by the driver or passengers
- Property damage liability coverage for property damage claims
- Collision coverage covers damage to a driver’s vehicle that results from collisions
- Comprehensive coverage offers reimbursement for damage done to a vehicle that is not caused by a collision
- Uninsured motorist coverage for drivers injured in an accident by another person who is uninsured
Optional coverage options include the following:
- Roadside assistance for towing and other assistance costs
- Death benefits for drivers who pass away in an accident
- Transportation expense coverage that covers the cost of a rental vehicle – this is normally included in comprehensive coverage but higher limits can be added on. This coverage can also be added on to collision policies.
The company also offers a wide range of insurance products outside of auto insurance include life, business, homeowners, and many others.
Erie’s comprehensive auto insurance plans come with several complimentary extra coverage benefits. Their comprehensive coverage plans cover transportation expenses following an accident without any deductible (with limits). There is no deductible for windshield glass repair (not replacement) for comprehensive plans. Comprehensive and collision plans do not have any deductible if both of the vehicles involved in the accident are insured by Erie. Erie also includes pet coverage with its comprehensive plans that covers up to $500 of medical care for pets injured in an accident.
Customer reviews of Erie Insurance are mainly positive, with many customers raving about low rates, fast claim payments, and great claims handling. Many customers appreciate the accident forgiveness program and the other unique programs and extra discounts offered. Negative reviews of the company online described negative experiences with particular customer service representative, difficulties with repairs when using their certified repair facilities, and various other complaints. No auto insurance company is free of complaints but Erie’s negative reviews are much fewer in quantity than many other insurance providers.
Erie Insurance is positively reviewed by customers and third party review agencies for its commitment to customer service and professionalism, and is a good option for insurance seekers living in one of the company’s 11 insurance markets. Erie has been reported by some insurance seekers to have higher premiums than other companies, but insurance rates will vary from one person to another. Auto insurance seekers who happen to live in a state where Erie sells insurance may quality for an affordable premium and can easily apply for a quote. Getting a quote from Erie and other insurance providers is easy; all you need to do is enter your zip code on this page and you will be able to compare insurance providers to see which ones offer the best rates and services.
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|Market Share||Ranked 15th|
|AM Best Score||A+|
|JD Power Rating||4 out of 5|
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