There are many great insurance carriers in the world. In this car insurance review, we will compare and show the differences between Erie Insurance Vs State Farm.
We will take a closer look into auto insurance discounts, features, claims, financial strength, and more to help you with making a wise choice. Compare insurance quotes to get the best rates for you and your family.
Fast facts
Erie
Erie Insurance was founded in 1925. Currently they have over 5000 employees and over 5 million policies in force for home, auto, and business insurance.
State Farm
On June 7, 1922 State Farm was born. Today State Farm has 84.4 million in policies and accounts. State Farm has nearly 70,000 employees.
Auto Insurance Rates Comparison
State Farm and Erie both offer competitive insurance premiums. If you are looking for better than average auto insurance premiums, then you wouldn’t go wrong by choosing either company. What I especially love about State Farm is that they offer one of the deepest number of insurance discounts among insurance carriers. What I love about Erie is that they have a Rate Lock feature that will secure your car insurance rates. Eastern states can take advantage of their favorable rates. Are you trying to find out which insurance company is the cheapest? All drivers differ in age, gender, driving record, etc. It’s hard to determine the answer to this question without first comparing rates. Make sure that you compare rates to see how much you will be paying for auto insurance.
Insurance claims comparison
Erie Insurance
When it comes to auto insurance claims, it’s hard to compete with Erie Insurance. Erie has great reviews across the boards and is well-known for providing their policyholders with a positive claims experience. In the J.D. Power Auto Insurance Claims Study Erie Insurance received 4 out of 5 stars in Overall Satisfaction. The only companies to score higher than Erie were USAA, NJM Insurance, Amica Mutual, and Auto-Owners. In three out of the seven categories Erie received 5 out of 5 stars. Erie received 5 out of 5 stars in the estimation process, the repair process, and the rental experience category. In the other four categories, Erie received 4 out of 5 stars.
State Farm
In the J.D. Power Auto Insurance Study State Farm received 3 out of 5 stars in Overall Satisfaction. In fact, State Farm received 3 out of 5 stars in all six out of the seven categories. The only category that State Farm received 4 out of 5 stars was in the Estimation Process. This category is based on how those who filed a claim rated the estimation process of their carrier.
In the J.D. Power Index Rankings, Erie received 881 points while State Farm received 865 points. Although Erie beat out State Farm, both insurance services scored higher than the 858 industry average. One thing that we do have to remember is that State Farm is a larger company with more claims per year.
Financial strength comparison
State Farm
There is no auto insurance carrier that can compete with the supreme financial strength of State Farm. With over 200 billion in assets, it’s easy to see why State Farm received an “A++” from A.M. Best. This is the highest grade that you can receive from A.M. Best. S&P Global Ratings gave State Farm an “AA” rating. A high financial rating creates a sense of trust for policyholders. Local companies with a low financial rating can create a difficult process when a claim needs to be filled.
Erie
In the recent Fortune 500 Erie Insurance Group was ranked number 382. Erie has earned an A+ (Superior) grade from A.M. Best.
Customer complaints
Erie Insurance Group received an “A+” rating from BBB. State Farm has as an “A+” rating from Better Business Bureau as well. These positive ratings help us to identify a company that handles customer complaints well.
Discount comparison
State Farm discounts
Accident-free – State Farm drivers with 3 continuous years without an auto accident will be able to take advantage of this discount. One of the best things about this discount is that over time the savings will increase.
Good Student Discount – Good grades can mean an extra 25% insurance savings. Savings will last until you turn 25 years old.
Drive Safe & Save – Enrolling in this program can help you to save 30%. Drive Safe & Save uses your car’s OnStar or your mobile device to help you to save. Not only does this program help you to save but it also helps you to become a safer driver. To start saving all that you have to do is check your eligibility, enroll in the program, and start saving. When you sign up you will begin saving 5% on your auto insurance policy.
Insurance discounts for teens – When you add a teen driver to your car insurance policy you will be able to save in various ways.
Military discount – Were you trying to receive military auto insurance discounts? State Farm’s military discount has restrictions compared to other companies such as USAA. You must be active duty and you must be based in Louisiana to qualify.
Multiple Line discount – Bundling insurance products such as home and auto will help you to save up to 17% on your policy.
Multiple Auto Discount – State Farm’s multiple auto discount will help you to save 20%.
Steer Clear – This is an insurance discount for drivers under the age of 25. To qualify for this discount you must have no at-fault accidents or moving violations within the past 36 months. Those who qualify will be able to save up to 15%.
Erie discounts
Erie Rate Lock – This feature makes sure that your rates will never increase. With auto insurance rates on the rise you have to make sure that your rates are always locked. With Rate Lock your rates will not increase even if you were to file an insurance claim. The only way your rates will increase is if you make changes to your policy.
Safe driver – Safe drivers will be able to receive a discount with Erie Insurance.
Diminishing Deductible – Every year that you are claim free your deductible will be reduced by $100 up to $500.
Young drivers – If you are unmarried, you live with your parents, and you are under 21, then you will be able to qualify for Erie’s young driver’s discount. This insurance discount is not available in North Carolina.
Reduced usage discount – 90 consecutive days of not using your vehicle can lead to more savings with Erie Insurance. Their Reduced usage discount is not available for drivers in Kentucky.
Multi-car – If you insure multiple owned vehicles with Erie, then you will qualify for the multi-car insurance discount.
Car safety equipment discount – If your ride is equipped with safety features and anti-theft devices, then most companies will help you to save 5% or more. Newer vehicles will usually qualify for this discount.
Better Car Protection – This coverage covers the cost of your auto loan. This coverage can also replace your older vehicle with a newer vehicle.
Availability comparison
Erie is located in 12 states. A few states that use Erie is Illinois, Indiana, Kentucky, New York, North Carolina, and Tennessee. Florida drivers who need auto insurance will not be able to use Erie.
State Farm is available in U.S. states and in Canada.
Both insurance carriers have agents scattered throughout the locations that they serve.
Rideshare comparison
Rideshare insurance is for Lyft and Uber Drivers. State Farm and Erie both offer ridesharing coverage for drivers.
Roadside assistance comparison
State Farm
State Farm’s emergency roadside coverage covers up to one hour of mechanical labor, flat tires, jump starts, towing, gas delivery, and locksmith labor. Services in certain areas are subject to a $75 limit.
Erie Insurance
You will only have to pay $5 a year for every vehicle that you add to your emergency road service coverage. With road service coverage you can get help for mechanical breakdowns, dead batteries, a car out of gas, and more. Towing is covered to the nearest service garage. Cars, light trucks, and motorcycles are included in this coverage.
Mobile app comparison
You are able to download the State Farm app on the Google Play store or iTunes. Registering your account in the app can be done effortlessly. The intuitive State Farm app helps you to manage your banking account, get emergency roadside assistance, pay your insurance bill, fill a claim, use their driving programs, etc.
The Erie Insurance company lacks a true app, but you can use the eSSENTIAL Accessibility App. This app helps you to easily navigate through the Erie Insurance website.
Bottom line
There are unique benefits of both insurance carriers. Erie is great in claims while State Farm is great in financial strength and discounts. If Erie is in your state, then Erie would be a good choice. State Farm is available nationwide so it might be easier to find a carrier in your state. I strongly recommend that you compare quotes to see which provider gives you more affordable rates.