Founded in 1925, Erie Insurance Exchange Group is a United States insurance provider that offers a range of policies and services, with categories such as auto and leisure, home and property and business insurance.
The company currently has more than 5.8 million policies in place in the United States. In 2018, Erie was ranked tenth nationwide in the total number of direct premiums written at 1,675,976. These numbers are significant, considering Erie renters insurance is only available in twelve states and Washington, D.C.
When it comes to renters insurance, Erie is known for its affordability and excellent customer services. However, Erie renters insurance scores lower with customers when it comes to policy offerings and business processes. Erie renters insurance policy coverages extend to liability protection, living expenses in case you have to leave your rental residence temporarily due to damage or repairs and liability and personal property away from home.
Though the company received a mediocre score in the latest J.D. Power home insurance customer satisfaction survey, Erie Insurance Group still received five out of five in terms of price and customer interaction. The company is not yet accredited with the Better Business Bureau.
The specs
| Price | Variable, depending on individual circumstances. The average cost of renters insurance is $184, or $15 a month |
| Best for | Those looking for an affordable policy |
| Not for | Those looking for a variety of policy options |
| States served | Illinois Indiana Kentucky Maryland New York North Carolina Ohio Pennsylvania Tennessee Virginia West Virginia Washington, D.C. |
| Discounts | Multi-policy |
| AM Best Rating | A+ |
| Standout features | Personal belongings coverage Liability insurance on the go |
The claim
Erie Insurance Exchange Group claims to have been assisting customers for more than 90 years while delivering some of the most affordable rates available. The company boasts of its more than 12,000 independent Erie agents and prides itself on the responsive service they provide. Erie also claims to have strong enough backing to pay out claims when necessary.
Is it true?
We’ve analyzed Erie’s claims to see if it’s true.
Affordable
According to J.D. Power’s 2019 U.S. Home Insurance Study on Renters Insurance, Erie Insurance Exchange came in fourth in overall customer satisfaction. In the study, customers gave Erie five out of five when it came to the price of the policy given the level of coverage, demonstrating that Erie’s customers feel that Erie is true to its claims of being affordable.
U.S. News & World Report also reports that Erie is an affordable option with the sample monthly cost averaging $17.41. Especially when bundled with another policy like auto insurance, Erie renters insurance is one of the most affordable in the industry.
Responsive customer service
Just as Erie renter insurance scores high marks on price and affordability on the J.D. Power 2019 Renters Insurance survey, respondents gave the company five out of five for its customer interactions, including communications with agents and call center representatives and navigating the company’s website.
Despite the high ratings in this study, however, some reviews from the Better Business Bureau mention a lack of response and slow communications as some of the most grievous complaints. While it seems that customer service is positive overall, some people might have to wait longer for resolutions.
Financially-sound
Erie Insurance Exchange states on its website that when it comes to the company’s financial strength, Erie has a lot to look forward to in the future. According to AM Best, renowned provider of financial ratings for insurance carriers, Erie Insurance earns an A+ (Superior) ranking. The outlook of the company’s finances is stable, and the company has maintained an A+ rating going back at least to 2015. Therefore, Erie’s claim of holding great financial strength is a true assertion.
Our deep dive
Erie renters insurance has some advantages for people in certain circumstances or looking for particular benefits.
- 24/7 support: Erie Insurance Group offers its reliable and responsive customer support 24 hours a day, seven days a week, to help you get help quickly if you experience an emergency.
- Liability protection: Erie renters insurance keeps clients protected in the event that a guest is injured or has personal property damaged while visiting your rental space.
- Loss-of-use coverage: If your rental is damaged in a covered loss, you may be forced to leave the home while repairs or renovations are underway. Erie renters insurance provides the coverage you need for living expenses while you’re away from home. These expenses include accommodations and food.
- Protection away from home: If you’re traveling away from home, Erie renters insurance keeps your personal items protected from loss, theft and damage. You are covered by Erie’s personal liability protection. If you hurt someone or damage someone’s property, your liability protection can help cover the cost.
Cost rundown
Although Erie Insurance Group’s website does not provide information about what impacts the cost of Erie renters insurance, it is safe to say that many of the same factors that affect other renters insurance coverage affect Erie customers as well.
Renters insurance costs vary based on your state, city and even zip code. Factors including crime rate, safety features like smoke detectors and security systems and residence size all play a role in determining the amount you will pay for renters insurance.
Furthermore, if you live in a geographic region prone to natural disasters like earthquakes or flooding, you may have to pay a higher amount if you need to opt for additional coverage.
Cheaper (or free!) alternatives
Erie tends to have competitive rates, but you may be able to save even more money.
- Bundle policies: If you have a car, consider bundling your insurance policies for a 16-24% discount with Erie Insurance. The company also offers life and business insurance, so consider bundling them too if you need them.
- Shop around: If you’re not satisfied with the price offered by your local Erie Insurance agent, shop around for other alternatives. Utilize online quotes to determine what your options are for affordable and quality renters insurance.
- Improve your credit: Often, your credit history can play a role in how much you pay for insurance. Dispute any suspicious dings on your credit report, and pay down your outstanding debts as quickly as possible to help bring your insurance premiums down.
- Ask about security systems: Many home insurance carriers offer a discount if you install a security system or other anti-theft precautions. If you’re considering purchasing renters insurance, ask your agent if you can get a price break for those same security measures.
The competition
Not every insurance provider is right for every person, and Erie isn’t available in many places. If you’re not sure Erie is the right option for you, consider these competitors.
- American Family: American Family was the 2019 award recipient from J.D. Power in the renters insurance category with a score of five out of five. American Family has several possible discounts. It also has some useful additional coverage options such as identity theft protection, travel protection, home-based business and pet insurance. If you need any of these insurance options, American Family might be a better fit for you.
- Liberty Mutual: If you’re looking for more discount opportunities, Liberty Mutual has several possibilities, including for being claims free, shopping early, serving in the military, having smart home or safety devices, having multiple policies, using automatic payments, purchasing online and having a paperless policy. However, Liberty Mutual scored lower across than board on the J.D Power study with a two out of five rating.
- State Farm: State Farm has the highest possible score from J.D. Power in every category except for claims. If you prioritize having quality customer service and being able to meet with an agent in person, State Farm might be an ideal option for you.
- USAA: If you serve in the military or have family members who do, USAA will probably offer you the lowest rates along with its top-notch customer service. J.D. Power rates USAA’s renters insurance as five out of five in every category.
What others are saying
In 2019, Forbes named Erie Insurance Exchange Group as one of the best employers in the United States. The fact that the company treats employees well shows that those employees will also want to take care of customers.
GoErie reported in that Erie Insurance established a $50 million Opportunity Zone in Erie County in April 2019, which lets investors use capital gains to invest in low-income census tracts. In a similar move, Erie created the Erie Downtown Development Corp, an equity fund that will help build neighborhoods in downtown Erie, Pennsylvania. These investments show Erie’s commitment to the community it serves.
The Bottom Line
Overall, Erie Insurance Group offers affordable renters insurance to renters in 12 states and Washington, D.C. Between the company’s competitive prices, customer service, and financial resoluteness, Erie Insurance Exchange offers plenty of perks, despite offering minimal policy offerings at the rental insurance level.
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