The Erie Insurance COVID-19 Rate Reduction & Dividend Relief Effort is meant to provide Auto Insurance Customers with Long-Term Rate Decreases and IMMEDIATE Monetary Relief.
This article will answer questions you have about Erie Insurance’s COVID-19 Plan.
Frequently Asked Questions: Erie Insurance COVID-19 Relief
Approximate Dividend Payout: 30% Of 2 Months Premium (Approx 5% of Annual Premium)
To calculate the approximate dividend, Customers can use the following equation:
Annual premium (as of April 1) multiplied by .30 / divided by 6
The dividend payout will vary by Customer based on the policy premium.
For example, a policy with an annual premium of $1,400 as of April 1 would receive a dividend check for $70 as calculated below:
$1,400 annual premium * .30 = $420
$420 / 6 = $70 dividend
Additionally, here is a summary of sample Annual Premium and Check Amounts 1,000 = $50
1,200 = $60
1,400 = $70
1,600 = $80
1,800 = $90
2,000 = $100
All Personal Auto Insurance Clients & Commercial Auto Insurance Clients will be eligible for the Erie Insurance Special Dividend.
**Commercial Auto Insurance Dividends are limited to Fleet & Non-Fleet Policies (Auto Garages Are NOT Eligible)
All Dividend Payments will be sent to Erie Insurance eligible customers around the Middle of May 2020 (dependent upon your state’s Insurance Department Approval)
Erie understands that their customers are experiencing hardships during this time.
That’s why Erie is providing both immediate relief to Customers in the form of a one-time dividend as well as the longer-term approach by proposing the 5 percent reduction in personal and commercial auto premiums.
The rate reduction will vary by insured and individually purchased policies. Erie is working to determine the
details by state and product.
Erie anticipates having final approvals from the various Departments Of Insurance by Mid-Summer.
The premium adjustments will take effect at either the inception of a NEW policy, or the renewal of an existing auto insurance policy.
You will not see any overall rate decrease until your renewal.
We do suggest you contact your agent to discuss any change in usage that could create a decrease in your insurance premium.
Most Customers will see a premium reduction after rates are approved; however, each Customer’s needs are different and therefore, their choices and coverages are different.
In some cases, Customers might still see a future increase in their overall premium.
In those circumstances, the amount of that increase will be less than it may have otherwise been.