Navigating the diverse roads of the Keystone State— from the bustling Schuylkill Expressway in Philadelphia to the snowy rural routes in the Alleghenies— comes with its own set of challenges.
For many Pennsylvania drivers, finding affordable car insurance is a big one. If you’re one of the many residents insured by Erie Insurance, you’ll want to pay close attention to your policy renewal this year.
What’s Happening?
Erie Insurance, the national carrier based in Erie, PA, is set to raise rates by 3.5% starting July 1, 2025. As the 3rd most popular carrier in the state, Erie’s adjustment is wide-reaching– impacting an estimated 970,843 policyholders.
While a 3.5% increase might not sound like a lot on its own, it can certainly make a difference in your annual budget. This increase is predicted to increase total written premiums for Erie by $69.8 million, or $69 per policyholder.
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Why Are My Car Insurance Rates Going Up?
It can be frustrating to see your insurance bill creep up, especially if you haven’t had any accidents or tickets. But rate increases are a common part of the insurance industry. Insurers often adjust their pricing in response to a variety of factors that affect their overall costs.
Think about the rising price of car parts, labor for repairs, and medical care. When the cost to pay out claims goes up for the insurer, they often pass a portion of that cost on to customers through rate adjustments. An increase in the frequency or severity of accidents in a specific area can also lead to higher premiums for everyone who lives there.
How to Find Cheaper Car Insurance
While an insurance rate increase can be stressful, the good news is that you are not stuck paying the higher rate. A rate change from your current provider is the perfect opportunity to make sure you’re still getting the best deal. Here are a few simple ways to lower your costs:
- Shop Around: The single most effective way to save money is to compare quotes from multiple insurance companies. Don’t assume your current insurer is still the cheapest option. Prices can vary significantly from one carrier to the next for the exact same coverage. Since Erie’s new rates kick in for renewals after July 1, 2025, now is the perfect time to start shopping.
- Re-quote Your Policy: Get a new quote from your current provider and several others before your policy renews. Auto Quote Tracker can help you compare your options side-by-side, making it easy to spot potential savings.
- Review Your Coverages: Take a moment to look at your current policy details. Could you raise your deductible to lower your premium? (Just make sure you choose a deductible you can comfortably afford to pay out of pocket). Do you have optional coverages you may no longer need? Adjusting your coverage is a quick way to manage your overall insurance cost.
Taking Action to Secure Lower Rates
Hearing about an upcoming rate increase is a good reminder to take some time to find affordable auto coverage. Shopping around every time your policy renews is the best way to ensure you’re always getting the best deal.
Next time, don’t wait until your rates go up. Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
