First-Party Benefits: Erie Insurance's Auto Coverage Explained

Erie Insurance has been in the insurance business since 1925 and offers auto, home, business, and life insurance. The company works with over 14,000 independent insurance agents and has nearly 7 million policies in force for auto, home, and business insurance. Erie Insurance is ranked 17th largest property/casualty insurer in the US and 13th largest auto insurer. The company offers a host of discounts on auto insurance while providing valuable coverage and service in the event of an accident. Some of the benefits of choosing Erie Insurance include accident forgiveness, pet injury coverage, rate lock, and diminishing deductible.

First Accident Forgiveness

Accident forgiveness is a feature of Erie Insurance's auto policies. It means that, if you've been an Erie customer for three or more years, you won't be surcharged the first time you're at fault in an accident. This feature is available immediately in North Carolina and with the ERIE Rate Protect policy in New York.

Pet Injury Coverage

Pet injury insurance reimburses you for vet bills and burial expenses if your pet is injured or dies as a result of a car accident. It also often covers the cost of a new pet. Many insurance companies waive the collision deductible for pet injury claims, but some do not. It's important to note that pet injury coverage is typically limited to dogs and cats, and the pet must be owned by you or a household member and be in the car during the accident.

Erie's pet injury coverage is available in 12 states and Washington, D.C. It is a valuable feature of their auto insurance policies, providing peace of mind for pet owners.

Rate Lock

Erie Insurance offers a Rate Lock® feature that allows customers to avoid auto insurance rate hikes. With the Rate Lock® feature, you will pay the same premium year after year. Your rates will only change if you add or remove a vehicle or a driver or change the address where you keep your car parked routinely. The Rate Lock® feature is not available in all states and is limited to three years in Virginia.

Here's how it works:

• Even if you have a claim, your rates won't change unless you make certain changes to your policy, such as adding or removing a vehicle or a driver, or changing your primary residence.
• You can also make changes to your policy without losing the benefits of the Rate Lock® feature. For example, if you add or delete coverages, your premium will only be adjusted to reflect that specific change.
• With the Rate Lock® feature, you can enjoy stable insurance rates, which can be a nice change for your household budget.

According to an Erie agent on Reddit, the company no longer has "RateLock" and has replaced it with "Erie SelectAuto." This new rating method uses extremely long actuarial tables, making it challenging for agents to understand how the rates are calculated. The previous Rate Lock® feature allowed customers to lock in their rates indefinitely unless they made specific policy changes.

Diminishing Deductible

Erie Insurance's Diminishing Deductible feature is a great way to save on your auto insurance. Here's how it works: for each consecutive year that you don't file a claim, your deductible will be reduced by $100, up to a maximum of $500. So, if you have a $500 deductible and don't file any claims for three years, your deductible will be reduced to $300. This can result in significant savings on your auto insurance premiums.

The Diminishing Deductible feature is available as part of the ERIE Auto Plus Endorsement, which costs around $30 more per year and includes several other benefits such as a $10,000 death benefit, additional days of transportation expense coverage, waived deductibles in certain situations, and increased limits for specific coverages.

It's important to note that eligibility for the Diminishing Deductible feature may vary by state, so be sure to check with your local Erie Insurance agent to see if you qualify. This feature is a great way to reward safe drivers and keep your insurance costs low.

In addition to the Diminishing Deductible feature, Erie Insurance offers a range of other first-party benefits with their auto insurance policies. These benefits include:

• Accident forgiveness: After three claims-free years, there's no surcharge for your first at-fault accident.
• Pet injury coverage: Covers up to $500 per pet for veterinary care if your pet is injured in an accident in your vehicle, up to a total of $1,000.
• Rate lock: Lock in your auto insurance rates until you make changes to your policy, such as adding a vehicle or driver, or changing your address.
• Comprehensive coverage perks: If you add comprehensive coverage to your policy, you'll get extra perks like glass repair with no deductible, locksmith services up to $75, personal items coverage up to $350, and basic rental car insurance.
• Auto Plus package: For an additional cost, you can add an assortment of benefits, including extra days of rental car coverage, higher limits for certain coverages, a waived deductible in certain situations, and a death benefit.

Personal Item Coverage

Erie Insurance's personal item coverage is part of its physical damage coverage. It helps cover the loss of clothing, luggage, and other personal belongings inside an insured car. The coverage is up to $350.

It's important to note that not all coverages and benefits are offered in the base policy and may vary by state. Be sure to consult with an ERIE agent or refer to the policy details for specific information.

Frequently asked questions