In the immense US insurance market, consumers can be overwhelmed by the myriad choices as they search for insurance products to meet their coverage requirements. As a broker, it’s your job to provide as many insurers as possible for them to choose from. One potential pick is Erie Insurance.
When reviewing an insurance company’s viability, it helps to look at key metrics that show if it is financially stable and reliable in honoring claims. In this review, we’ll look at Erie’s insurance ratings from A.M. Best and other agencies. These and other key indicators will help you make an informed decision about the insurer.
Before you endorse any product or service to clients, it’s standard practice to do due diligence and to take into account the company’s size and key performance indicators. In the case of insurance companies, their financial strength ratings (FSR) and other pertinent disclosures like financial statements are a good start.
To evaluate whether an insurance provider like Erie and its products are viable, it is essential to look at their financial strength. The FSR of an insurer is a key determinant of whether they can honor claims.
So, how does Erie Insurance rank? Based on the latest available data, here’s what our research found:
A.M. Best gave Erie Insurance an FSR of A+ or Superior. This is the highest rating that the company provides. An A+ rating from A.M. Best means that the insurer has a strong ability to meet ongoing policy and contractual obligations. It’s important to note that Erie’s long-term outlook was revised to “negative” in August of 2024.
This decision by A.M. Best to make changes to Erie’s insurance rating was prompted by recent surplus losses and increased claims severity. However, the overall FSR of Erie remains at A+. Insurance ratings agency A.M. Best also affirmed the long-term issuer credit rating (ICR) of “aa-” for the property and casualty members of Erie Insurance, but with the same negative outlook.
Fitch, Moody's, and S&P did not provide financial strength ratings for Erie Insurance as these rating agencies tend to focus on larger national carriers.
For a deeper understanding of insurance ratings agencies, their methodologies, and the distinct meanings of each of their rankings, check out this guide.
As with FSR, the most recent issuer credit ratings also come from A.M. Best. This indicates the insurer's creditworthiness. Erie Insurance has two main divisions that handle different insurance categories:
These divisions have separate ICRs from A.M. Best:
|
Entity |
Long-Term ICR |
Short-Term ICR |
|---|---|---|
|
Erie Insurance Group (P&C) |
aa- (Superior) |
Not published |
|
Erie Family Life Insurance Co. |
a - (Excellent) |
Not published |
To date, no short-term ICRs are available for Erie Insurance from A.M. Best or the other insurance rating agencies. The long-term ICRs listed are the most current.
This metric reflects Erie Insurance’s overall creditworthiness and ability to meet senior financial obligations, including paying claims and debt over an extended period. The minimum period for a long-term ICR is one year.
The “aa-” rating is one of the highest possible ratings a company reviewed by A.M. Best can achieve. Erie Insurance ratings of aa- for its long-term ICR signifies a very strong capacity to meet financial commitments.
The rating of aa- also means superior, further emphasizing that Erie is in a robust position financially, with strong capitalization and prudent risk management practices. Erie’s insurance rating is only one notch below the very top of A.M. Best’s ratings scale. This indicates that the insurer is highly reliable in meeting its obligations, even under adverse market conditions.
Since Erie Insurance has a superior rating, this is very reassuring for brokers and their clients. The insurer is very likely to remain solvent and capable of paying claims, even during times of financial stress. Its insurance and credit ratings provide confidence in the company’s long-term financial stability and reliability as a business partner. You can even view its latest financial reports to further back up these findings.
Erie Insurance is widely recognized for its outstanding customer satisfaction, claims service, and value, with top ratings from J.D. Power, Consumer Reports, and the Better Business Bureau. Here’s what we found from their reports:
Online reviews for Erie Insurance are generally positive. Customers frequently mention the company’s strong local agent network, responsive claims service, and competitive pricing. Many policyholders say they would recommend Erie to friends and family. They also expressed appreciation for their clear policy documents and personal service. However, there is some negative feedback about limited digital tools and the insurer’s limited regional availability.
J.D. Power is a respected authority on consumer satisfaction. Its Erie Insurance ratings consistently rank among the best in the regions they serve. In J.D. Power’s latest Auto Insurance Study, we found these rankings:
Out of 21 companies, Erie Insurance ranked third overall, but for its home insurance, Erie ranked fourth. These high scores reflect Erie’s strong performance in customer satisfaction, claims handling, and policy offerings. Keep in mind that J.D. Power does not endorse any product or service, and its rankings take into account the company’s size.
This is a non-profit organization known for its independent product testing and consumer advocacy. They provide unbiased product reviews, ratings, and buying guides to help consumers make informed decisions. It consistently places Erie Insurance at or near the top spot for customer satisfaction, claims handling, and value for money.
Erie is also recognized and recommended by Consumer Reports for their strong performance in auto and home insurance. These reviews reinforce Erie’s reputation as a dependable insurer.
The BBB also gives high ratings to Erie Insurance. It assigned the insurer an A+ rating, the highest possible rating. BBB business profiles generally cover a company’s responsiveness to complaints, transparency, and willingness to resolve issues. It also publishes complaints and reviews for the public.
The BBB reveals that Erie responds promptly and fairly to complaints. This organization considers various factors when making a report on a company, like complaint volume. It also takes account of company size, ensuring a fair assessment of companies like Erie, relative to their scale. BBB does not endorse the companies it rates. Companies are also not obligated to seek BBB accreditation.
Erie is a regional insurance company that has a wide range of products and insurance add-ons. Its portfolio includes:
Note that some of these products may not be available in all the states where Erie Insurance maintains a presence. Some policies may not be available due to state regulations and underwriting guidelines.
Erie Insurance offers a few unique products and insurance add-ons like:
This is an insurance policy feature that consumers can use to lock-in their auto insurance premiums year after year, so rates only change if they add or remove a vehicle or driver or change address. This feature is not commonly offered by other carriers and can provide substantial long-term savings and predictability for clients.
Although some insurers offer accident forgiveness, Erie Insurance takes it a step further by providing first accident forgiveness automatically after a customer has maintained auto coverage for three years. This means that their first accident won’t raise their rates. This program does not require any extra endorsement or costs.
Erie’s Auto Plus endorsement reduces deductibles by $100 for each consecutive claims-free year that a client reaches, up to a deductible of $500. While other insurers offer similar benefits, Erie's is included as part of a low-cost package and is available in most markets they serve.
Erie automatically includes pet injury coverage in its full coverage auto policies, paying up to $500 per pet (up to $1,000 total) for veterinary expenses if your pet is injured in a covered accident. This is a rare benefit among major insurers.
The standard homeowners’ policy offered by Erie includes guaranteed replacement cost for the dwelling. This means that they will pay to rebuild the policyholder’s home regardless of its limit (but subject to policy terms). What sets this product apart from other insurance companies is that it’s typically offered as an optional endorsement, if it is offered at all.
Erie’s Auto Security package includes both new car replacement for cars under two years old and “better car replacement” for older cars, up to two model years newer. This package also includes gap insurance – such packages are not offered by other carriers.
This identity theft recovery coverage is an add-on to both personal and business insurance policies. It provides support and reimbursement for expenses related to identity theft.
As a regional player, not a national insurance provider, Erie Insurance's products are only available in 12 states and the District of Columbia.
|
Illinois |
Ohio |
|---|---|
|
Indiana |
Pennsylvania |
|
Kentucky |
Tennessee |
|
Maryland |
Virginia |
|
New York |
West Virginia |
|
North Carolina |
Wisconsin |
Should you or your clients need coverage outside of these areas, it would be best to look for other insurers.
The table summarizes the average annual costs of Erie Insurance’s main products compared to national averages, along with their cost differences. These figures are based on the most recent industry data available.
|
Product |
Erie Average cost |
National average |
Cost difference |
|---|---|---|---|
|
Auto insurance (full) |
$2219 |
$2677 |
-$458 (cheaper) |
|
Auto insurance (minimum) |
$737 |
$807 |
-$70 (cheaper) |
|
Homeowners' insurance |
$2565 |
$2,466 |
+$99 (higher) |
|
Business insurance |
$684 |
$1,345 |
-$661 (cheaper) |
If these averages are not appealing, remember that you can always look at other insurance providers, like the top ten P&C insurers in the US, or in the case of auto insurance, find cheaper alternatives or negotiate for lower quotes.
Erie Insurance is a regional insurance company founded in 1925, with headquarters in Erie, Pennsylvania. The company offers a wide range of personal and commercial insurance products, including auto, home, business, and life insurance, via a network of independent agents.
Erie Insurance is known for its excellent customer service, competitive pricing, and high customer satisfaction ratings. It operates in 12 states and the District of Columbia and holds robust financial strength and credit ratings.
Our research and available data on Erie Insurance indicate that it can be an insurance provider worth considering. If your clients are within the insurer’s service area and value strong local agent support, competitive pricing and high-quality customer service, Erie Insurance can be an excellent choice.
Its financial strength and credit ratings are among the best in the industry and make it stand out among other insurers. Erie also offers investment products, giving customers ways to grow their money. The only caveat is that clients who prioritize digital tools or need coverage outside Erie’s area may want to consider other options.
Erie Insurance Group is one of the top 10 personal auto insurance companies in Pennsylvania. Learn more in this guide.
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