At ERIE, we don’t take the price you pay for car insurance lightly. Like most companies today, we’re facing increased costs of doing business. And we know that you are facing rising costs too, for everything from gasoline to breakfast cereal to housing.
And while a lot of factors go into what you pay – from vehicle safety ratings to your personal driving history – striking the balance between insurance premiums and the cost of doing business is key to any insurer’s ability to meet customer expectations and pay for claims.
For questions about your specific auto policy and rate, reach out to your ERIE agent. Generally speaking though, here are some of the biggest factors that may cause auto insurance premiums to increase:
- Inflation: The Consumer Price Index (CPI) rose by 2.9% in 2024. This means that on average, all of us are spending 2.9% more than we were a year ago on the same goods and services.
- Repair costs: Recent supply chain issues such as the car chip shortage and labor market pressures have driven up repair costs even more, by as much as 14.2% since 2022. Limited supplies and labor can also cause repairs to take longer, meaning customers are in rental vehicles longer—further driving up the cost of claims.
- Vehicle prices: Prices for used vehicles jumped more than 27% from 2020 to February of 2025, according to the auto industry analysts at Edmunds.
- Driving again (and faster): Americans are going faster than ever before. In a national survey commissioned by ERIE, 1 in 10 drivers admitted to driving at extreme speeds of 20 MPH or more over the speed limit.
- Accidents: It should be no surprise based on all that fast driving, but auto accidents are getting more severe, too.
With inflation on the rise, we understand if you’re feeling financial pressure in your household budget right now. That’s why we keep our founding purpose front and center when we make decisions affecting our customers:
“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.”
This purpose has served us well for over 100 years and we hope our customers agree that it has worked out pretty well for them, too. ERIE is committed to rates that cover costs properly and that will maintain the financial strength needed to keep being there for customers, year after year.
How to Save on Your Auto Insurance
While we want to do our best to explain what’s behind the increased costs you might see in your insurance bill these days, we also understand that doing that doesn’t put any more money in your pocket. So here are a few ideas that might.
- Ask about pay plan discounts. Depending on which plan you choose, you can save up to 7% on your auto insurance.
- Get a quote with the ERIE Rate Lock® feature. With ERIE Rate Lock®, you will pay the same premium year after year – even if you have a claim.1 (In New York, ask about ERIE Rate ProtectSM. In Maryland, ask about ERIE Select Auto.)
- Take a look at your deductibles. Consider a higher deductible to lower your auto insurance premium. Read our guide on how to choose a deductible.
- Bundle your coverage with ERIE. You can earn a multi-policy discount1 of 15% or more when you combine your ERIE auto, home (including renters) or qualifying life insurance policy. Learn more about how to bundle with ERIE.
Remember: You Aren’t Alone
When you’re with ERIE, every car insurance policy comes with a knowledgeable agent in your area.
Your agent is there to help you understand and navigate all the variables that impact your rates. Find a local insurance agent near you to understand what coverage you’re buying, why it matters and how it works.
Not an ERIE customer yet? See if ERIE can offer a more affordable car insurance rate and get a quote.
1Rates subject to change if you add or remove a vehicle, add or remove a driver, or change the location your vehicle is principally garaged at. ERIE Rate Lock® does not guarantee continued insurance coverage. Not available in all states. Limited to three years in Virginia. Insured must meet applicable underwriting guidelines. Premium may change if you make a policy change.
