Why does Erie Insurance use insurance scoring?
Erie Insurance uses credit information in order to help predict a Policyholder or prospective Policyholder’s propensity for future loss. Many independent studies have shown that there is a distinct and consistent decline in risk of loss as an insurance score improves. Therefore, the more favorable an individual’s insurance score, the less likely the Policyholder is to experience a loss, and vice versa.
Is my premium based entirely on my insurance score?
No. Both auto and homeowners premiums are based on factors other than credit history. Your auto insurance premium is based on criteria such as your driving record, the type of car you drive, how far you drive, etc. Your homeowners premium considers factors such as the cost to replace your home in the event of a loss and the distance to the closest fire department.
Because Erie Insurance uses insurance scoring as one of our underwriting and pricing tools, we can offer lower premiums to customers who are deemed less likely to experience losses. Insurance scoring helps making insurance available to more consumers at a fair price. Like all insurers, Erie Insurance cannot deny an applicant insurance coverage based solely on an insurance score.
Can my ERIE Agent tell me my insurance score?
No. In fact, your ERIE Agent doesn’t even know your score. Instead, your Agent only knows whether your score, in conjunction with other factors, makes you eligible for a particular rate or class within Erie Insurance.