Erie car insurance review and ratings 2024

Our take: Erie is an excellent choice for your car insurance needs. It has the lowest premiums of the major insurance companies we looked at, scores well in claims handling and customer service and offers a variety of coverages to protect your vehicle.

While price is always a major consideration when searching for a new insurer, it is important to consider a variety of factors. “I always advise clients to consider a carrier's financial stability and customer service”, says Patti Yencho, owner of Professional Insurance Advisors, an independent insurance agency in Vero Beach, Florida. “Look for companies with strong credit ratings and few complaints. Pay attention to how they handle claims; you want fast, fair resolution.”

Erie was the cheapest for all the coverage levels we looked at: state minimum, liability-only with higher limits, and full coverage insurance. In addition to low premiums, Erie earned the top score in consumer research organization J.D. Power’s annual claims satisfaction study. The carrier also earned an A-minus grade in the CRASH Network’s annual survey of body shop personnel about their interactions with auto insurance companies.

As with every insurer, there are some drawbacks. Erie earned a below-average score in the service category of J.D. Power’s annual digital shopping experience survey. However, the insurer was ranked No. 3 in the shopping subcategory. Also, the company does not offer usage-based insurance (UBI), something that could be important if you drive infrequently or are a careful driver.

One major disadvantage is that Erie is not a nationwide insurer. It operates in 12 states and the District of Columbia, so depending on where you live Erie may not be an option.

Overall, Erie is an excellent choice if it is available in your area, it offers plenty of coverage options, discounts, and best of all, some of the lowest premiums out there.

How we compared Erie

As we reviewed Erie, we look at various industry data, insurer reviews and studies and industry benchmarks. We reviewed various studies, including the J.D. Power customer satisfaction survey and the CRASH Network’s annual survey of body shops which ranks insurers on how well they deal with body shops and claims.

We also checked with ratings agency AM Best to verify the financial stability of Erie and other insurers and each insurer’s record for complaints with the National Association of Insurance Commissioners (NAIC).

Finally, we ran the numbers to find where Erie ranked when it came to premiums when compared to some of their major competitors:

Erie versus other top auto insurers

What are the biggest auto insurers?

Just four companies dominate the U.S. car insurance industry. Together, Allstate, State Farm, Progressive and Geico control about 56% of the market.

Erie ranks 13th among the top auto insurers with approximately $4.2 billion in premiums written in 2023, behind market leader State Farm with $58 billion, according to the NAIC.

How do Erie’s rates compare to other top insurers?

Erie came out on top when we compared its average rates with the largest four car insurance companies. Erie was the cheapest insurer for state minimum, liability only at 50/100/50, and full coverage policies. In many cases the difference was dramatic, Erie’s full coverage premium came in almost 70% cheaper than Allstate – the most expensive of the Big Four carriers – $1,480 per year on average compared to $2,509 annually.

“Shopping frequently ensures the best coverage and rates. Prices and options change often, and discounts can yield major savings, too,” Yencho says.

The rates below were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible. Rates were also calculated for liability coverage with limits of 50/100/50 and for state-minimum coverage amounts.

How does Erie do in claims satisfaction?

While the cost of coverage is an important consideration, how quickly and fairly an insurer handles a claim is also a big factor when it comes to choosing an insurer.

Don't just consider price,” Yencho says. “Look at coverage, service and claims handling. The cheapest policy means nothing if coverage is poor or claims are a nightmare.”

Erie scored far higher than any of the four largest carriers in J.D. Power’s annual Auto Claims Satisfaction Study, placing second overall with a score of 902. Among the Big Four insurers, State Farm (891) and Allstate (882) both scored above the survey average of 878, while Geico (871) and Progressive (870) scored below average.

We also consulted data from the CRASH Network, which performs an annual survey of national body shops rating their interactions with auto insurance companies regarding auto claims. Crash asks body shops how well each insurer handles claims payments for repairs.

Erie earned a grade of A-minus, far above the other insurers we looked at in this comparison. Progressive earned a C, while State Farm and Geico managed C-minus, and Allstate received a D+.

How is Erie’s financial stability?

Erie is rock solid with an A+ (Superior) rating. The other major insurers we considered also had excellent financial ratings as well, with State Farm and Geico being awarded the highest ranking of A++ (Superior). Progressive and Allstate also had A+ ratings.

Experts recommend checking the financial rating of any insurer you are considering with AM Best, a credit rating agency that provides research reports and credit ratings on some 16,000 insurance companies worldwide.

Does Erie receive a lot of complaints?

Customer service and claims handling are major rating factors when it comes to insurance companies. While a low premium is always nice, having to wait on the phone for hours to talk to someone is never a bargain.

J.D. Power ranked Erie at the top of its annual U.S. Auto Insurance Study in the North Central Region for the fourth year in a row. The carrier earned a score of 710.

Erie has fewer consumer complaints than expected in the market, according to the National Association of Insurance Commissioners (NAIC) Complaint Index. The NAIC rates companies based on how many complaints are on file compared to its market share. A score of 1.0 means it received a number of complaints that are the same as the industry expectation for a company of that size, while a score higher than 1.0 means it received a higher-than-average number of complaints. A score below 1.0 denotes fewer complaints than expected based on market share..

Erie’s score was 0.97, below the expected average of 1.0, but still indicative of more complaints logged than the Big Four insurers. For comparison, Progressive and Allstate earned a 0.65, State Farm a 0.7, and Geico 0.91.

What is Erie’s digital shopping experience like?

A robust website and app that allow customers to buy a policy, file a claim or make changes to their coverages are fairly standard among insurers these days. But some cariers are doing better than others when it comes to delivering a satisfying online customer experience.

The annual J.D. Power Insurance Digital Experience Study looks at how policyholders ranked their online experience with insurance companies in both service and shopping.

When it comes to digital experience, Erie seems to be better at the shopping portion than the service section. Erie ranked number one for digital shopping among the top 5 insurance companies in our rankings with a score of 533. However, it dropped down to fourth place when it comes to the service portion of the digital experience.

Progressive took the top spot when it came to online service, scoring a 737 but tied with Geico for third place for digital shopping.

How is Erie for shopping in general?

Erie ranked number one in the 2024 J.D. Power U.S. Insurance Shopping Study, which looks at how well major auto insurers provide a satisfying purchase experience to consumers shopping for coverage. The carrier topped the rankings with a score of 730. State Farm (695) and Progressive (678) were the only two major insurers to finish with above-average scores in this study.

Does Erie offer a good usage-based insurance program?

Many insurers offer usage-based insurance (UBI),which uses an app or in-car device to measure the distance driven and monitor speed, hard braking and acceleration when you are driving. If your insurer likes what they see, they will lower your rates. Conversely, if the data reveals aggressive driving habits, you could be penalized with a higher premium.

However, Erie Insurance does not currently offer a UBI policy option.

Key offerings from Erie

An Erie auto insurance policy offers all of the basic protections that come standard with car insurance as well as some bonus offerings. In order to fully protect your own vehicle you may want to go with a full coverage policy that adds collision insurance and comprehensive insurance to your liability coverage. This will ensure your vehicle is repaired or replaced if damaged in an accident or other incident.

Standard full coverage policies from Erie also come with the following:

• Pet coverage. If your pet gets hurt in an accident while riding in your car, Erie will help cover vet treatment costs. (Up to $500 per pet; total limit $1,000.)
• Auto glass repair. This waives the deductible for repairs to windshields and windows.
• Roadside & Rentals bundle. This provides emergency roadside assistance as well as more robust coverage for short-term rentals.
• Locksmith services. Erie will cover up to $75 of the cost.

Erie also offers these optional add-ons coverages at for an additional premium:

• Personal injury protection (PIP)
• Uninsured/underinsured motorist coverage (UM/UIM)
• Classic car insurance
• First accident forgiveness
• Diminishing deductible
• New car protection
• Better car protection
• Ridesharing

Making the choice: Why go with Erie?

Erie has the lowest rates for car insurance on average among the carriers we looked at. It offers all of the standard coverages as well as a number of additional add-ons to protect your vehicles. Erie also offers homeowners and renters coverage.

Erie is financially sound, so you don’t need to worry about your claim being paid in the event of a disaster. And, it earns top marks from policyholders when it comes to claims handling. What’s more, it is the only insurer that earns top marks for claims handling from body shop personnel.

Before you sign up: Things to consider

Erie is a regional insurer and doesn’t write policies in all states. Currently, it operates only in:

• Illinois
• Indiana
• Kentucky
• Maryland
• New York
• North Carolina
• Ohio
• Pennsylvania
• Tennessee
• Virginia
• Washington, D.C.
• West Virginia
• Wisconsin

In addition, Erie does not offer usage-based insurance (UBI).

Erie Auto Insurance – Our expert verdict

Erie wins on price alone, but because it only operates in a handful of states not all drivers will be able to take advantage of their low rates. It also earns high marks for claims handling from both drivers and the people who repair their vehicles.

Methodology

Rates were collected from auto insurance comparison site CarInsurance.com and its data partner Quadrant Information Services for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

We analyzed more than 53 million quotes, more than 34,000 ZIP codes and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property that you damage.

AM Best’s Financial Strength Ratings (FSRs) are an independent assessment of an insurer’s financial strength and ability to meet its policy and contract obligations. Best’s FSRs are based on a graded scale from A++ (Superior) to D (Poor). For more information, visit AM Best’s ratings guide. For the latest AM Best credit ratings, visit www.ambest.com 

The National Association of Insurance Commissioners (NAIC) Complaint Index analyzes consumer complaints submitted to state insurance departments. The Complaint Index is used to compare a company’s performance to others in the market. The National Complaint Index is benchmarked at 1.0. For example, a company with a score of 2 has a complaint index that is twice as high as expected in the market. A company’s complaint index score is determined by dividing the number of complaints by its share of premiums in the U.S. market.

J.D. Power is a marketing, consumer intelligence, and data and analytics company that publishes a variety of studies on the insurance industry and carriers. The rankings included in this story originate from JD Power’s 2024 U.S. Insurance Digital Experience Study, 2024 U.S. Insurance Shopping Study and 2023 U.S. Auto Insurance Study.

CRASH Network’s Insurer Report Card is an annual survey of more than 1,100 collision repair professionals nationwide. Participants awarded each company a grade from A+ to F based on this question: “How well does this insurer's claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” Those polled also indicated whether or not they participate in that insurer's direct repair program.