My post of July 29, 2011 discussed Erie Insurance’s new auto insurance policy feature now available in Pennsylvania. Erie Insurance’s actual name for this policy feature is Rate Protection Endorsement. “Rate Lock” is easier to say and has a nice mental image.
Rate Lock has been added to both new auto insurance policies written by Thome Insurance Agency and current auto insurance policies that have renewed since July 15.
One of the unexpected developments is that in some cases adding Rate Lock has actually reduced the premium of the auto insurance policy! It makes little sense to charge less for the benefit of guaranteeing that your premiums will not increase. Although there is the rare chance that auto insurance premiums will actually decrease in the future.
The only explanation that company actuaries and product development personnel offered is that the predictive modeling used to calculate these rates is much more sophisticated than current pricing models.
Now please keep in mind that most people will have to pay an additional premium for Rate Lock. The addition premium is unique to each individual. You will have to decide if Rate Lock is right for you.
TIP – The on-line quote request is complicated and requires plenty of information entry. My advice is – Call us at 717-367-1580 to see what Rate Lock can do for you.