Erie Insurance is making a number of rate reductions that will result in savings for its personal and commercial auto policyholders in the state of New York.
The combined impact of rate actions proposed by Erie on its private passenger auto business will be a rate reduction totaling 6.5 percent, or a premium savings of over $4.7 million for Erie’s personal auto policyholders. The New York State Insurance Department has already approved rate decreases totaling 3.0 percent for Erie’s private passenger auto insurance rates with an effective date of November 15, 2005. Individual rates and reductions will vary according to coverages and limits selected. Erie has also filed for additional reductions totaling 3.7 percent with a proposed effective date of January 1, 2006.
In addition, Erie announced that the company has filed for an 8.0 percent safe driver discount for new private passenger auto policyholders who meet specified underwriting guidelines. The discount is similar to Erie’s Pioneer Experience Rating Credit, which has for years rewarded the company’s claims-free drivers with discounted insurance rates.
Along with the reductions in its personal auto rates, Erie also recently received approval for commercial auto decreases that will take effect December 1, 2005. Erie is reducing rates for trucks, tractors and trailers by 5.1 percent and commercial passenger trucks by 2.0 percent.
“These reductions are consistent with Erie’s founding purpose: To provide our policyholders with as near perfect protection, as near perfect service as is humanly possible and to do so at the lowest possible cost,” said Jeffrey A. Ludrof, president and chief executive officer of Erie Insurance Group. “Our favorable experience has allowed us to pass along these savings to our policyholders. We especially want to offer an incentive that encourages people to drive as carefully as possible. Our new discount and the discount we offer current policyholders with safe driving records do just that.”
Erie Indemnity Company provides management services to the member companies of the Erie Insurance Group, which includes the Erie Insurance Exchange, Flagship City Insurance Company, Erie Insurance Company, Erie Insurance Property and Casualty Company, Erie Insurance Company of New York and Erie Family Life Insurance Company.
According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 14th largest automobile insurer in the United States based on direct premiums written and the 22nd largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M. Best Company, has almost 3.8 million policies in force and operates in 11 states and the District of Columbia.