Disclaimer

The materials in the questions and answer database are the proprietary information of Erie Insurance Group and its member companies. The materials and information shall remain the sole property of Erie Insurance. The information in this question and answer database is designed to assist in answering general questions about auto insurance. The information contained in this question and answer database is generic in nature and is not to be construed as a representation or warranty of coverage in a particular claim situation. Each claim will be decided on its own merits and coverage for a particular claim will be decided upon the facts of the claim and the language of the applicable declarations, policy, and endorsements. A change in facts can alter the result of whether a particular claim is covered. Questions concerning particular claim situations should be referred to the appropriate claims office. Coverage’s described are subject to any exclusions, limitations or conditions in the policy Jacket or policy endorsements.

* You should also refer to your individual state specific jackets and amendatory Endorsements.

1.  Accidents and/or Violations

Question: How many accidents and/or violations are permitted, on an existing policy, before ERIE considers cancellation or nonrenewal?

Answer: Since the ERIE underwrites each policy individually, there is no magic number of permissible accidents or violations. The ERIE strictly adheres to all state laws in its decisions on whether to cancel or non renew a policy. 

2. ADQ (Additional Driver Questionnaire)

Question: Why are Additional Driver Questionnaires required?

Answer: All regular drivers of the Named Insured’s vehicles and members of the household present an exposure under the policy. As new drivers and household members appear, we ask that they complete an ADQ so that we may properly rate and underwrite the account.

3. ADQ – Refuse to complete

Question: What happens if a driver refuses to complete and ADQ?

Answer: The information requested on an ADQ is necessary for us to underwrite and accurately rate a policy. Failure to provide such information is a violation of the General Conditions of the policy and The ERIE does have the right to nonrenew if a driver does not complete an ADQ.

4. Alarm System

Question Is there a discount for an alarm system on a vehicle?

Answer: The premium for Comprehensive coverage will be discounted by 5% or 10%, depending on the type of alarm system.

5. Anti-lock Brakes

Question: What is the discount for anti-lock brakes?

Answer: Bodily Injury and Property Damage premiums will be discounted by  8% in all states for 1983 and newer model year vehicles equipped with factory-installed four-wheel anti-lock brake systems. ”Rear” only anti-lock brake systems do not qualify.

6. Anti-Theft Qualifications

Question: What objects, vehicles or devices qualify for Anti-Theft Discount?

Answer: The Anti-Theft Device Discount is available for autos equipped with anti-theft devices such as:

• security alarms

• hood locking mechanisms unlocked by a key or electronic device

• manual or automatic switch devices

• remote monitoring alarms and central base computer systems

• devices, which make fuel, ignition or starting systems inoperative

• devices, which prohibit steering, wheel from being turned, excluding standard steering wheel lock

• identification systems, which involve etching the VIN or serial number on to automobile parts

7. ARQ (Auto Renewal Questionnaire)

Question: What is an ARQ?

Answer: The ARQ (Auto Renewal Questionnaire) is designed to verify existing file information, update records and make any changes necessary to ensure proper coverage and rating of the policy.

8. Auto Lease/Loan Security Coverage

Question: What is Auto Lease/Loan Security Coverage and what is the charge for it?

Answer: This coverage provides additional protection in the event of a total loss to a covered auto for which the auto lease/loan coverage has been purchased. Coverage must be requested within 60 days of the lease or purchase of the vehicle. Coverage would be provided for the difference between the actual cash value of a covered auto and the amount due under the terms of the lease/loan agreement. The premium for this coverage varies depending on the vehicle.

9. Borrowing a Vehicle

Question: If someone borrows an insured’s vehicle are they covered?

Answer: We provide liability protection for any person using or legally responsible for the use of an owned auto we insure, subject to any exclusions, limitations, or conditions in the policy jacket and/or policy endorsements. This must be with the Named Insured’s permission unless the use is by a relative of the Named Insured’s household. Any specifically excluded driver is not covered.

10. Car in Storage

Question: Is there a discount for having a car in storage?

Answer: A vehicle placed in storage for at least 90 consecutive days qualifies for a reduced usage rate. The “lay-up” period is stated on the Dec. page. A 30% to 40% premium reduction applies and the policyholder avoids the need to cancel the policy. (Motorcycles, motor homes, snowmobiles and other seasonally rated vehicles do not qualify).

11. Car Transported

Question: Is there Physical Damage coverage for a car while transported to a foreign country? Is there coverage while in that country?

Answer: Coverage applies in the United States, its territories and possessions, Puerto Rico, Canada, or between their ports. Our policy does not provide coverage in any other foreign countries or while the vehicle is being transported to any other foreign countries.

12. Classic Vehicle Appraisal

Question: (Antique) What qualifies an auto as an antique?

Answer: Autos that are 25 years or older may be rated as Antique Autos if they have been kept original and in good running condition. They are often licensed as an antique with the Department of Motor vehicles. Vehicles in poor condition that have not been well maintained cannot be insured as antiques. An ERIE

appraiser will inspect a vehicle over $10,000 to verify its value. The minimum Stated Amount value for which these vehicles may be insured is $5,000.

Question: (Classic) Can one get an older vehicle insured as a classic vehicle? Does one need an appraisal?

Answer: To be considered a classic, an auto must be 10 years or older, of limited production or exceptionally fine workmanship, of rare or historic interest, restored, maintained or preserved. An ERIE appraiser will inspect a vehicle over $10,000 to verify its value. The minimum Stated Amount value for which these vehicles may be insured is $5,000.

13. College Student Discount

Question: How can students become eligible for college rates?

Answer: When a young, unmarried driver:

• is a full time college student, and

• does not live a home during the school term, and  does not take a vehicle to school.

14. Compact Disc and Tapes Coverage

Question: What coverage is provided for compact discs and tapes?

Answer: Payment for loss to tapes or compact discs is limited to 10 tapes or compact discs at any one loss. Coverage for the theft of tapes or compact discs will be provided only if the sound equipment is stolen or the entire auto is stolen.

15. Comprehensive Coverage

Question: What does Comprehensive coverage cover?

Answer: Comprehensive coverage pays for damage to an insured auto its equipment not caused by collision or upset. This includes, but is not limited to fire, theft, glass breakage, vandalism and contact with persons, animals, birds, or falling objects.

16. Corporately Titled Vehicles

Question: Can a vehicle titled to a corporation be insured on a Personal Auto policy?

Answer: No. Vehicles titled to corporations, partnerships and associations must be written on a Commercial Auto policy.

17. Death and Disability Coverage

Question: What is Death and Disability coverage?

Answer: Death and Disability coverage is available as an optional coverage on Personal Auto polices that carry Bodily Injury liability coverage. Three coverages are available: Death Benefit ($5,000 or $10,000), Specific Injury Benefits (provides a benefit for dismemberment, loss of sight, fractures and dislocation, in a benefits schedule), and Total Disability Income Benefit (weekly disability payment when the named person’s disability prevents performance of every occupational duty; disability must be caused by an auto accident). Death and Disability coverage may be sold with a motorcycle.

18. Deductible

Question: Why does an Insured have to pay a deductible if the other driver was at-fault?

Answer: The Erie’s insured can file a Collision claim through ERIE. Payment will be made minus the Collision deductible. If The ERIE determines that the other driver was “at-fault,” ERIE would try to collect the total damage and when successful, reimburse the deductible amount. The deductible applies per accident. The deductible will be waived if the accident involves two ERIE insured vehicles.

19. Different Limits

Question: Can different Liability limits apply to each vehicle on a policy? Can Physical Damage limits be different for each vehicle on a policy?

Answer: When one or more vehicles are insured under a single ERIE policy, the same limits of liability apply to all vehicles.

Physical damage coverage, if purchased, follows the vehicle. Therefore, different deductibles can apply to different vehicles.

20. Driving in Canada

Question: Is a special insurance card required when driving in Canada?

Answer: No insurance card is needed to enter Canada, but if a driver is involved in an accident while in Canada, immediate proof of financial responsibility may be required in some provinces. A special Canada card that meets this requirement is available and it is recommended that one be obtained before entering Canada. Agents may obtain the cards from agent supply.

21. Feature 15

Question: What is Feature 15?

Answer: Feature 15 is a benefit designed to reward long-term Policyholders with The ERIE. After an auto policy has been in force with The ERIE for 15 continuous years, the policy will not be surcharged for any at-fault accidents reported under the policy. This feature does not apply to policies insured with The ERIE through the Automobile Insurance Plan or Flagship City. This feature does not apply to traffic violations and drivers being added to the existing policy. Cancellation and non-renewal laws still apply.

22. Fiancée - Adding

Question: Can a fiancée be added to an automobile policy prior to marriage?

Answer: The ERIE Family Auto Policy is designed to insure an individual or an individual and spouse. It is not intended to insure two unrelated people as Named Insureds. (Fiancées can be added as drivers but not as Named Insureds.) If the fiancée owns a vehicle, the fiancée and their vehicle should be insured on a separate policy.

23. First Accident Forgiveness

Question: What is First Accident Forgiveness?

Answer: Under First Accident Forgiveness, we will waive a surcharge on an Exchange/Preferred auto policy for the first chargeable at-fault accident over $1150.

24. Honor Roll Discounts

Question: Does ERIE give good student discounts or discounts for good grades in school?

Answer: No, ERIE does not currently offer these discounts.

25. Increase Deductible

Question: Will there be a reduction in premium if the collision deductible is increased?

Answer: Yes, increasing the deductibles is one way to decrease auto premium.

26. Lease/Loan Security Coverage

Question: Can Lease/Loan Security coverage be written on a new application if the car was leased two years ago and the same coverage was provided on the previous policy?

Answer: Yes, if the insured has maintained that coverage on a prior automobile policy (with The ERIE or a competitor), we will permit the coverage to continue on the new ERIE application.

27. Limited Tort vs. Full Tort

Question: What is the difference between Limited Tort Coverage and Full Tort Coverage?

Answer: Full Tort permits an unrestricted right to seek financial compensation for injuries caused by other drivers. Eligible insureds may seek recovery for medical and other out-of-pocket expenses and may also seek financial compensation for pain and suffering or other non-monetary damages.

Limited Tort limits the right to seek financial compensation for injuries caused by other drivers. Eligible insureds may seek recovery for medical and other out-of-pocket expenses but not for pain and suffering or other non-monetary damages unless the injuries suffered fall within the definition of “serious injury” or unless

one of several other exceptions (injury caused by an uninsured motorist, an out of state registered vehicle or a drunk driver) applies.

28. List Not At-Fault Accidents on Application

Question: Does an Insured have to list not-at-fault accidents on an application?

Answer: Any driver in the household that has had any accidents, convictions for violations, suspensions, or claims for auto-related losses (due to theft, fire, etc) should report them on the application.

29. Military

Question: Can a youthful driver who enters the military be removed from the auto policy?

Answer: A son or daughter who enlists in the military but still claims their parents’ address as their permanent address should remain as a listed driver on the policy. ERIE charges an occasional rate if the child does not have a vehicle with them (an occasional operator) and a principal rate if they are the primary operator of a vehicle. If the military child is stationed overseas in a non-US territory or possession for an extended period of time, they may be removed from the policy.

30. Miscellaneous Vehicles (Motorcycle, Moped, Snowmobile, Golf Cart, ATV)

Question: Can a miscellaneous vehicle be added to a personal auto policy?

Answer: The ERIE will not automatically cover a miscellaneous vehicle if the policy does not already insure a miscellaneous vehicle of the same type owned by the insured. Miscellaneous vehicles can be added only if the records of all drivers meet current underwriting requirements and all operators are of driving age. Certain types of motorcycles are subject to special underwriting guidelines.

31. Motor homes on the Policy

Question: Does The ERIE insure motor homes on a separate policy?

Answer: ERIE can insure a motor home on the Family Auto Policy.

32. Multi-Car Discount

Question: Does the multi-car discount apply to people who live in the same household but are not related?

Answer: No. To qualify for the multi-car discount there must be two or more ERIE insured vehicles owned and used by an individual and/or relatives residing in the same household. Relative means a resident of the Named Insured’s household who is related to the Named Insured by blood, marriage or adoption, or a ward or any person under 21 years old in the Named Insured’s care.

33. Named Insured That Is Not Sole Owner

Question: Is it permissible to insure a vehicle that is not solely owned by the Named Insured?

Answer: Underwriting approval is required. Co-titled vehicles are not provided automatic coverage. If the vehicle is titled in the name of the insured and another party, the other party should be listed on the declaration page in Item 9 indicating co-ownership of the vehicle and listing them as an Additional Insured is recommended. If the co-owner is the principal operator, a separate policy is suggested.

34. Parked Travel Trailers

Question: How are travel trailers covered when they are parked year round at a campsite? What about when they are moved from the campsite?

Answer: If Comprehensive Coverage is purchased, then endorsement AMJA7 provides limited named perils coverage for the trailer. However, the Family Auto Policy does not provide any premise liability coverage. Liability protection will only apply when the trailer is actually attached to a covered auto. If the trailer is being moved physical damage coverage on the trailer will apply.

35. Performance Cars

Question: How is it determined that certain vehicles are “performance cars?”

Answer: The determination is made based on a curb weight to net horsepower ratio. 1989 and older model cars with a curb weight to net horsepower ratio less than 14.7 to 1 are designated as “hot cars”. 1990 and newer models with a curb weight to net horsepower ratio greater than 14.0 to 1 but less than or equal to 16.0 to 1 are designated as “intermediate performance cars.”

1989 and older two door domestic or imported models designed to carry two passengers with a curb weight to net horsepower ratio of 30.0 to1 or less are designated as “sports cars”. For 1990 and newer models, a “sports” car is defined as a domestic or imported auto designed to carry two passengers or which provides minimal rear seating for two people (commonly referred to as 2+2 vehicles) with a curb weight to net horsepower ratio less than or equal to 25.0 to 1 but greater than 20.0 to 1. 1990 and newer models as defined above with a curb weight to net horsepower ratio less than or equal to 20.0 to 1 are designated as “premium sports” cars.

1989 and older models with a curb weight to net horsepower ratio of 14.7 to 1 through and including 18.6 to1 are designated as “warm cars.” 1990 and newer models with a curb weight to net horsepower ration of 14.0 to 1 are less designated as “high performance” cars or “premium performance” cars.

“High performance” cars include traditional “muscle” cars such as the Chevrolet Corvette and Camaro Z-28, Ford Mustang GT and Pontiac Trans Am.

“Premium performance” cars include those autos that have a wheelbase of 106 inches and greater or a curb weight of 3,600 pounds or greater. These autos are generally the luxury class vehicles and include the Cadillac Deville, Concours, Eldorado and Seville, Lincoln Mark VIII and certain models of Lexus, BMW and Mercedes.

36. Personal Effects Coverage

Question: Are tools and materials, carried to job sites in personal vehicles, covered under the Family Auto Policy?

Answer: No, professional or occupational tools and materials are not considered personal effects under the Family Auto Policy.

37. Personal Effects if Stolen

Question: Is coverage provided for theft of personal effects even if the entire vehicle is not stolen?

Answer: No, under the Family Auto Policy coverage for personal effects normally carried by a person, such as luggage and clothing are not covered unless the entire vehicle is stolen (not to exceed $350).

38. Rate Increase

Question: Why can the premium increase from one year to the next on the same vehicle?

Answer: Medical, legal and auto repair costs are rising, which costs insurers more to pay claims. The ERIE does all it can to control other expenses, but as the costs for good and services The ERIE must purchase to pay claims increase, so must premiums be raised to help cover those costs. Rate increases are filed and approved by each state’s insurance department. Premiums could also increase on individual policies because of a surcharge, additional driver or loss of a discount.

39. Re-Keying of Locks

Question: Is re-keying of locks covered if the keys are stolen?

Answer: There is no provision under the Family Auto policy for the re-keying of locks if the keys are stolen.

40. Removing a Spouse

Question: If a Policyholder is getting divorced, how can the spouse’s name be removed from the policy?

Answer: If the spouse is listed as an Item 1, Named Insured on the Declarations, the Agent of record must have a Transfer of Interest Form signed by the spouse being removed from the policy. It is recommended that the driver removal process be initiated when one of the spouses changes residency (moves out).

41. Renting Automobiles, Moving Vans and U-Hauls

Question: Is there coverage for renting Automobiles, moving vans and U-hauls?

Answer: Liability protection extends to non-owned autos, moving vans and U-hauls. The moving van or U-haul must be used for personal use and be a four to six wheel motor vehicle, designed mainly to transport household goods and must be rented by the Named Insured for 45 days or less.

Physical Damage Coverage exists if purchased on private passenger autos only while the Named Insured or resident relative is operating or has possession or custody of a private passenger auto not furnished or available for the regular use of him or a resident relative.

42. Replacement Vehicles

Question: Is there automatic coverage for a replacement vehicle?

Answer: For the coverage purchase and for which a premium is shown on the declarations, The ERIE insures any private passenger auto, including 4 to 6 wheel motor vehicles, owned by the Named Insured which replaced an auto described on the declarations. The Named Insured must notify us during the policy period for coverage to apply to the replacement vehicle. If a replacement is made within 30 days prior to the end of the policy period, the Named Insured has 60 days after acquisition to notify us.

43. Report New Car

Question: If an Insured buys a new vehicle, how long does he have to inform The ERIE of it?

Answer: To be properly insured, a new vehicle should be reported as soon as possible to the Insured’s Agent. However, it must be reported by the end of the policy period, or within 60 days of acquisition, if purchased within 30 days of the renewal date.

44. Restricted Use

Question: When does a Restricted Use rate apply?

Answer: Restricted Use rates apply to antique or classic autos that are used mainly for exhibition purposes, such as a parade, driven under 500 miles annually.

45. Road Service

Question: What does Road Service cover?

Answer: We pay reasonable towing and labor costs required because an auto we insure is disabled. Labor must be done at the site of the disablement and no deductible applies. You must have comprehensive coverage to purchase road service.

46. Similar Vehicles Different Premiums

Question: Why is there a difference in premium for similar vehicles? Answer: There are many factors involved when determining a vehicle’s premium, such as:

• age of driver

• usage

• coverage limits

• where the vehicle is garaged

• repair cost, damageability, and susceptibility to theft

47. Stereo Equipment

Question: Is stereo equipment covered on an auto policy?

Answer: Sound equipment not permanently installed is not covered by the auto policy. Equipment permanently installed in the opening normally used by the auto manufacturer is fully covered but subject to the deductible. Payment for loss to sound equipment permanently installed in other than the opening of the dash or console normally used by the auto manufacturer to install a radio is limited to $1,000.

48. Street Rods

Question: What are street rods?

Answer: A street rod is generally an older model vehicle that could have qualified as an Antique or Classic, BEFORE it was modified. Street Rods are significantly altered mechanically or in appearance from the original manufacturers specifications in such a manner so as to alter their performance capabilities and/or handling characteristics.

49. Surcharges for Spouse

Question: Why is a surcharge added for violations, accidents and suspensions by a spouse who is insured with another company?

Answer: By policy definition, a spouse is automatically a Named Insured under The ERIE policy and enjoys the same coverage as the Named Insured to whom he or she is now married. For that reason, we must underwrite the new spouse the same as the Named Insured and apply to the policy any surcharges or discounts that are applicable.

50. Temporary Driver

Question: Can a grandchild be covered while driving a car for a few weeks while visiting an insured?

Answer: Driver information should be obtained on any additional drivers regardless of the situation. Anyone, other than a specifically excluded individual, is covered, while operating the vehicle with the Named Insured’s permission.

51. The “Club”

Questions: Do you give a discount for the “Club?”

Answer: Yes, a 5% discount on comprehensive coverage is given for the “Club”.

52. Traffic Violations

Question: How do traffic violations affect a personal auto policy?

Answer: Violations which result in a conviction can be surcharged or, in some cases, the policy can be non-renewed. Parking tickets and non-moving violations are not considered. Surcharge points are not the same as the points the State motor vehicle departments assign for violations.

53. Transportation Expenses

Question: Are Transportation Expenses covered?

Answer: Transportation expenses are automatically covered at $20 per day for a comprehensive loss if comprehensive coverage is purchased on the vehicle involved in the loss. (Higher limits may be purchased.)

Transportation expense for a collision loss is optional. If the Declarations page shows a premium for that specific vehicle coverage, transportation expenses will be provided for the limit listed.

54. Underinsured and Uninsured

Question: What is underinsured and uninsured coverage?

Answer: Underinsured motorist coverage protects the Insured for losses when the responsible driver does not have enough insurance to pay for damages he causes.

Uninsured motorist coverage protects the insured for losses caused by persons carrying no liability insurance. Uninsured/Underinsured Motorists coverage protects the insured for Bodily Injury only.

55. Vehicle for Sale

Question: Should coverage be kept in force on a car held for sale, if it is not being driven?

Answer: Yes, Pennsylvania requires insurance be carried on any vehicle that is still registered.

56. Vehicle Not Running

Question: A policyholder’s vehicle is not running or being used and he stores it in the garage. Why should a policyholder pay for something not running or being used?

Answer: We do not force anyone to insure any vehicle. However, Pennsylvania requires the insured to maintain liability coverages on the vehicle if he/she chooses to keep the vehicle registered. The insured should return the license plates to the state before dropping the insurance. The laid up vehicle may be eligible for the Reduced Usage Rate.

57. Vehicle Titled in Child’s Name

Question: Can a vehicle titled in a child’s name be added to their parent’s policy?

Answer: The insured should notify the Agent of the possible addition of a vehicle in their child’s name. We strongly encourage that the vehicle be written on a separate policy listing the child as the Named Insured.

Disclaimer

The materials in the questions and answer date base are the proprietary information of Erie Insurance Group and its member companies. The materials and information shall remain the sole property of Erie Insurance. The information in this question and answer data base is designed to assist in answering general questions about personal property. The information contained in this question and answer data base is generic in nature and is not to be construed as a representation or warranty of coverage in a particular claim situation. Each claim will be decided on its own merits and coverage for a particular claim will be decided upon the facts of the claim and the language of the applicable declarations, policy, and endorsements. A change in facts can alter the result of whether a particular claim is covered. Questions concerning particular claim situations should be referred to the appropriate claims office.

1. Alarm System

Question: What does "alarm system type 2" mean on the policy declarations page?

Answer: Credits are applied to a HomeProtector premium for the existence of alarm systems in the home. The types of alarms are:

Type 1         Central station fire or burglary alarm is one that rings into a security office for notification of police or fire department. Direct alarm is one that directly and automatically alerts the Fire Department or Police.

Type 2         Fire or Burglary Alarm system that does not directly or automatically alert fire or police departments; local alarm including smoke detectors.

2. Claim Increasing Premium

Question: Will my premium increase if I report a loss on my HomeProtector Policy?

Answer: HomeProtector policies may be subject to a surcharge if there has been 2 or more paid claims in the past five years.

3. Clothing in Storage at Dry Cleaners

Question: Does the Personal Property Coverage of my HomeProtector cover my clothes while they are in storage at the dry cleaners?