At ERIE, we don’t take the price you pay car insurance lightly. Like many companies today, we are faced with the rising cost of doing business. And we know you’re facing rising costs, for everything from gas to breakfast to housing.
And while many factors go into what you pay – from car insurance to your driving record – striking a balance between insurance premiums and the cost of doing business is essential for an insurance company to meet customer expectations and pay what they say.
See also: What is the Cost of My Car Insurance?
For questions about your specific auto policy and pricing, reach out to your ERIE agent. More generally, though: Here are some of the biggest trends that will drive auto insurance premiums up in 2022:
- Inflation: The Consumer Price Index (CPI) rose more than 7 percent compared to 2020 – the largest increase in almost 40 years. This means that on average, we are all spending 7% more than we were a year ago for the same goods and services.
- Vehicle parts: The price drop we are talking about is very high when it comes to auto parts, and the prices go up by around 10%. (Historically, 2 to 3% year-over-year increases are more common.)
- Maintenance cost: Latest online content like lack of vehicle equipment and labor market problems have caused repair costs to increase, up to 20% from 2020. Limited supplies and services can also cause repairs to take longer, meaning that customers are in long-term rental cars—improving the cost of claims.
- Car prices: Used car prices are set to increase more than 27% in 2021, according to automotive researchers at Edmunds. New car prices are up more than 14%.
- Running again (and faster): As driving returns to pre-pandemic levels, Americans are driving faster than ever. In a National survey conducted by ERIE1 in 10 drivers admitted to driving 20 MPH or more over the speed limit.
- Danger: It shouldn’t come as a surprise given how fast driving is, but car accidents are on the rise, too. The National Highway Traffic Safety Administration has put the fatality rate at 12%, the largest increase since reports began in 1975.
With inflation on the rise, we understand if you are facing financial difficulties with your home right now. That’s why we keep it our established purpose front and center when we decide what affects our customers:
“To give our policyholders the best protection, as close to the best service as possible and to do so at the lowest possible cost.”
This has served us well for nearly 100 years and we believe our customers will agree that it has worked for them as well. ERIE is committed to pricing that pays for itself and that helps keep money with customers, year after year.
See also: How to Get the Best Cheap Insurance
How to save on your auto insurance
While we want to do our best to explain the reasons behind the increased costs you may see on your insurance bill today, we also understand that doing so does not put more money in your pocket. So here are a few possible ideas.
- Ask about payment plan discounts. Depending on the plan you choose, you can save up to 7% on your auto insurance.
- Find a rate with ERIE Rate Lock® appearance1. I am ERIE Rate Lock®, you will pay the same premium every year – even if you have claims. Your rates will not change until you make other changes to your car insurance policy, such as adding or removing a car or driver from your policy, changing your address or where you park your car. (In New York, ask about ERIE Rate ProtectSM. (In Maryland, ask about ERIE Select Auto.)
- Check your deductible. Consider a higher deductible to lower the cost of your auto insurance. Read our guide how to choose the deductible.
- Check your distance again. Are you working from home and driving less than before the pandemic? You may be eligible for a reduced rate based on annual miles driven. (Use reductions are not available in Kentucky.)
- Combine your support with ERIE. You can get discounts for many policies2 when you include your ERIE car, home (including renters) or qualifying insurance. Learn more about how to bundle with ERIE.
Oh, and a discount? We have them. Find out more about our entire list of auto insurance discounts.
Remember: You are not alone.
When you’re with ERIE, every auto insurance policy comes with an expert in your area.
Your agent is there to help you understand and manage all the variables that affect your rates. contact us to understand what you are buying, why it is important and how it works.
Not an ERIE customer yet? See if ERIE can provide more information cheap car insurance value and find value.
1 Prices are subject to change if you add or remove a vehicle, add or remove a driver, or change your address or preferred parking location. ERIE Rate Lock® does not guarantee coverage. Not available in all states. Minimum of three years in Virginia. Insurance must meet applicable guidelines. Fees may change if you change plans. Check out our home self denialfor more information.
2 All discounts are subject to eligibility and applicable rates and regulations at the time of purchase. Actual costs vary. Premium lifetime discounts are not available in conjunction with motor vehicle policies that take advantage of the ERIE Rate Lock®. Erie Family Life insurance is not available in New York. For more information, contact us today.