Jeffrey Wade
Erie Insurance is a well-known insurance company that has been in operation since 1925. The company offers a range of insurance products, including car insurance, home insurance, business insurance, and life insurance, and is known for its competitive rates and customer service. In terms of federal backing, there is no clear indication that Erie Insurance is directly backed by the federal government. However, it is worth noting that Erie Insurance has been involved in federal lawsuits related to COVID-19 business interruption cases and has received recognition from federal entities, such as being listed on the Fortune 500 list. Additionally, Erie Insurance offers flood insurance backed by a federally funded flood carrier, American Bankers Insurance Company.
| Characteristics | Values |
|---|---|
| Founded | 20 April 1925 |
| Founders | H.O. Hirt |
| Type of insurance | Auto, home, business, and life insurance |
| Area served | 12 states and Washington, D.C. |
| Number of employees | 2,800+ |
| Number of independent agencies | 2,200+ |
| Number of licensed agents | 13,000+ |
| Rating by A.M. Best | A+ (Superior) |
| Rating by U.S. News | #9 (tied with Progressive) |
| Rating by Bankrate | N/A |
| Sells flood insurance | Yes |
| Flood insurance backed by | American Bankers Insurance Company |
| Sells personal valuables insurance | Yes |
| Sells life insurance | Yes |
Explore related products
$17.6 $45
What You'll Learn
- Erie Insurance-backed Arctaris invests $12.4 million in Erie
- Erie Insurance wins COVID-19 lawsuits
- Erie Insurance offers flood insurance backed by American Bankers Insurance Company
- Erie Insurance is one of the cheapest companies for auto insurance
- Erie Insurance is a top-performing property-casualty insurer
Erie Insurance-backed Arctaris invests $12.4 million in Erie
Erie Insurance-backed Arctaris has invested $12.4 million in Erie, with plans to invest more in the EDDC and other Erie projects. The investment will help finance the construction of a new 300-space parking garage on Fifth Street, with another building planned to wrap around the parking structure.
Arctaris Impact Investors, backed by $50 million in investments from Erie Insurance and $5 million from the Erie Community Foundation, pledged to invest $30 million in projects by the Erie Downtown Development Corp. (EDDC). The Boston-based company also plans to invest $10 million in other designated federal Opportunity Zone areas in Erie.
The EDDC is a community- and business-backed group formed in 2017 to rebuild the population and restore vibrancy to downtown Erie. The group had to demonstrate that their projects were worthy of investment and had to have a plan to pay back the money.
Both Erie Insurance and Arctaris have made investments through the federal Opportunity Zone program, which allows investors to receive special tax incentives when they invest capital gains in designated low-income areas. This will likely shape the means by which the investments are repaid.
FDIC: Insuring Your Bank Deposits
You may want to see also
Explore related products
Erie Insurance wins COVID-19 lawsuits
A federal judge has dismissed 32 lawsuits against Erie Insurance over COVID-19 business interruption insurance claims. The ruling by U.S. District Judge Mark R. Hornak in Western Pennsylvania concluded that the claimants failed to "plausibly plead" that they were entitled to coverage under their Erie policies. The ruling reflects the opinions of other courts that have rejected the idea that COVID-19 and government shutdowns caused direct physical damage and loss, triggering business interruption coverage.
The lawsuits were filed by a group of 32 initial plaintiffs, including Second Time Around Thrift Shop and St. Arnold's Mussell Bar, in January 2021. The plaintiffs argued that the shutdown rules issued by governments to mitigate the spread of COVID-19 constituted a ""direct and accidental loss of or damage to covered property" as defined in their insurance policies. They further asserted that the policies constituted a valid and binding agreement obligating the defendants to indemnify plaintiffs for covered losses.
However, Erie Insurance denied their claims, arguing that ""direct physical loss of or damage to" property unambiguously "requires a tangible, concrete physical harm" to the property, which the plaintiffs could not prove. The court agreed with Erie Insurance's interpretation and concluded that the Erie policies did not provide coverage for the additional consequences that the plaintiffs suffered as a result of the pandemic and associated government orders.
This ruling is consistent with the majority of COVID-related business interruption cases, which have been unsuccessful according to a report by Property Casualty 360, an insurance industry publication. The publication notes that successful lawsuits in this area are rare and typically involve specific circumstances such as ambiguous policy provisions and the actual presence of the COVID-19 virus on business property.
While the ruling is a win for Erie Insurance, it is important to note that the judge acknowledged the detrimental economic impact of the pandemic on businesses. However, the judge affirmed that the insurance policies in question did not provide coverage for the type of losses claimed by the plaintiffs.
Insured Accounts: 250,000 Federally Protected Savings Options
You may want to see also
Explore related products
Erie Insurance offers flood insurance backed by American Bankers Insurance Company
Erie Insurance has been in the insurance business since 1925, when it was licensed as an automobile insurer by the Pennsylvania Insurance Department. Over the years, the company has expanded its offerings to include home, business, and life insurance. Today, Erie Insurance is the largest employer in Erie County, Pennsylvania, with over 2,800 local employees.
Erie Insurance offers a range of insurance products, including auto, home, and life insurance. The company is known for providing affordable coverage options, particularly for teens and young drivers, who can benefit from good student and driver training discounts. Erie Insurance also offers accident forgiveness and rate lock programs, as well as a diminishing deductible feature, helping customers save money on their policies.
Erie Insurance's home insurance policies do not typically cover flood damage. However, the company does offer flood insurance as an optional extra. This is underwritten by the federally-funded American Bankers Insurance Company. Flood insurance is particularly important for those living in flood-prone areas, as standard home insurance policies do not cover flood damage.
The American Bankers Insurance Company is a respected flood insurance carrier, and its backing ensures that Erie Insurance customers have access to comprehensive flood coverage. This additional coverage option demonstrates Erie Insurance's commitment to providing its customers with the protection they need, whether it be for their homes, vehicles, or personal belongings.
Payday Lenders: Are They Federally Insured?
You may want to see also
Explore related products
Erie Insurance is one of the cheapest companies for auto insurance
Erie Insurance is one of the most affordable auto insurance companies in the market. The company offers a range of benefits and discounts to its customers, making it a popular choice for those seeking cost-effective car insurance.
Erie's auto insurance rates are lower than the national average in every category, including teen drivers, who typically face higher insurance premiums due to their higher risk profile. Erie's sample rates for teen drivers are the cheapest among the companies analysed, making it an attractive option for young drivers and their families.
The company also offers discounts for various factors, such as multi-policy discounts of up to 25% when insuring both auto and home, safe driving records, and safety equipment in vehicles, such as airbags, anti-theft devices, and anti-lock brakes. Erie's First Accident Forgiveness coverage ensures that rates remain unchanged after a first at-fault accident, which is a significant advantage for drivers with less experience or those prone to accidents.
Erie's Rate Lock® feature provides customers with rate stability, guaranteeing that rates will only change if there are alterations to the insured vehicles, drivers, or the address where the vehicle is routinely parked. This feature gives customers control over their insurance costs and helps them avoid unexpected increases.
In addition to competitive pricing, Erie Insurance excels in claims handling, earning a rating of 4.1 out of 5 in this category. The company's collision repair claims process received an A- grade from auto body specialists, indicating a smooth and efficient process for customers. Erie's customers expressed high satisfaction with the claims system, with 90% of surveyed customers satisfied with the process, surpassing the industry average.
Overall, Erie Insurance stands out as one of the cheapest auto insurance companies, offering comprehensive coverage, attractive discounts, and a highly-regarded claims process, making it a compelling choice for cost-conscious consumers seeking reliable car insurance.
Annuities: Are They Safe and Federally Insured?
You may want to see also
Erie Insurance is a top-performing property-casualty insurer
Erie Insurance has a strong financial rating, receiving an A+ (Superior) rating from A.M. Best, a respected insurance financial ratings provider. It also ranked highly in terms of customer service and loyalty, with US News ranking it as the joint 9th best car insurance company, alongside Progressive. Erie Insurance also offers competitive rates, with premiums for car insurance typically below the national average for drivers with clean records.
The company has demonstrated a commitment to diversity and equality in the workplace, receiving recognition from Forbes in 2020 as one of the best employers for diversity. Additionally, in 2017, it received a perfect score on the Corporate Equality Index, a benchmark for LGBT workplace equality.
Erie Insurance has also been recognised for its community involvement and impact investing. In 2022, it partnered with Arctaris Impact Investors, investing $12.4 million in projects aimed at revitalising downtown Erie, with a focus on underserved areas. This investment was made through the federal Opportunity Zone program, which provides tax incentives for investing in designated low-income areas.
Overall, Erie Insurance's strong financial performance, commitment to diversity and community, and competitive product offerings contribute to its reputation as a top-performing property-casualty insurer.
Federal Buildings: Who Insures Them?
You may want to see also
Frequently asked questions
No, Erie Insurance is not backed by the federal government. However, it does sell flood insurance backed by a federally funded flood carrier, American Bankers Insurance Company.
Erie Insurance has been in operation since April 20, 1925, when it was licensed by the Pennsylvania Insurance Department as an automobile insurer. The company's first auto policy, the Super Standard Auto Policy, was introduced in 1934 and served as a model for other insurance companies across the country. Over the years, Erie Insurance has expanded its offerings to include home, business, and life insurance. It now operates in 12 states and Washington, D.C., and has made the Fortune 500 list.
Erie Insurance offers a range of insurance products, including car insurance, home insurance, business insurance, and life insurance. They also provide flood insurance and personal valuables insurance. Additionally, Erie offers discounts and benefits such as first accident forgiveness, rate lock, and a diminishing deductible.
