If you’re looking for insurance, you’re interested in lowering your auto insurance rates. Have you ever wondered how auto insurance rates are determined?
Insurance companies must balance rates with the cost to cover claims. Factors that may affect the cost of your policy:
Auto insurance rates vary by state too. Rates in any given state are based in part on historical claim frequency and repair costs for car accidents or theft, as well as other factors like the cost of medical care. Within a state, some territories have higher rates than others.
Why are auto insurance rates rising?
Insurance companies pay claims using the money collected from their Policyholders. Higher auto repair costs, higher medical bills, and costlier auto accident lawsuits have made claims more costly to settle.
ERIE does all it can to control expenses and offer low rates, but as the costs increase for goods and services, premiums must be raised to cover those expenses. Premiums could also increase on individual policies because additional drivers are added, there is a change in the autos insured, or an accident or violation results in the loss of a discount.
Erie Insurance is committed to keeping your auto rates as low as possible through fiscal responsibility and disciplined underwriting practices. ERIE further lowers your rates through numerous discounts.
Talk to an Erie Insurance Agent or use the Agent locator to find one near you. ERIE Agents can explain auto insurance costs and ways you can lower your premium in more detail.