When it comes to car insurance, most people dread one thing: rate increases. You pay your bills on time, you haven’t had any accidents, and yet your premium goes up. At NS Insurance, we get it—that’s frustrating.
That’s why one of the most valuable features Erie Insurance offers for auto policies is called Rate Lock®. But if you’ve looked through your policy documents or spoken to your agent, you might also see something called Exchange.
Let’s break down the difference:
- What is Rate Lock?
- What Exchange?
- The key differences between them
- When each one applies
- How they affect your premium
- When a rate might still change
Let’s clear up the confusion so you can make the most informed decision for your coverage and your wallet.
What is Erie Rate Lock®?
Rate Lock® is an optional feature available with many Erie Insurance auto policies. When you add Rate Lock, your premium stays the same year after year—even if rates go up statewide—unless you make certain changes to your policy.
That’s right. Even if your neighbor’s rate increases next year, or if you have an at-fault accident, your rate stays the same as long as your policy remains unchanged.
Here’s what doesn’t trigger a rate change with Rate Lock:
- Traffic violations or minor accidents
- Statewide or national rate increases
- Natural aging of drivers or vehicles
Here are the three triggering events for a Rate Lock recalculation:
- Adding or removing a vehicle
- Adding or removing a driver
- Changing your address
Think of Rate Lock like a thermostat for your car insurance premium. It “locks in” your current rate and only changes if you “open the door” by making a major change.
What is Exchange?
Exchange is a standard feature of Erie’s auto policies— where Erie smooths out your rate changes over time instead of hitting you with a steep increase all at once by using proprietary algorithm to compare:
- Your current rate
- What your premium would be under current rates and risk models
And then it gradually moves you toward the new premium using “exchange” adjustments at each renewal.
It’s designed to reduce rate shock—especially if Erie’s rating model has changed, or your personal risk factors have evolved. For example, if you moved from a rural area to a busy city and didn’t notice an increase right away, Exchange might spread the change out over several renewals.
Common Misconceptions
Let’s tackle a few myths we often hear:
🧩 “I have Rate Lock, so my rate can never go up.”
Not quite. If you move to a new home, add a teen driver, or get a new car, Rate Lock will unlock and recalculate your premium based on Erie’s current pricing. But if you don’t make any of those changes? Your rate stays flat.
🧩 “Exchange gives me a locked rate.”
Nope. It sounds similar, but it’s not a lock. It’s more like a ramp that slowly adjusts your rate up or down over time to ease into new pricing, especially after major model changes by Erie.
Which One is Better?
At NS Insurance, we often recommend Rate Lock to drivers who:
- Are settled in their home and vehicle situation
- Want predictable budgeting for several years
- Have had past frustration with surprise rate hikes
When Does Rate Lock Make Sense?
Let’s say you’re a Green Bay driver with:
- One car
- No plans to move
- A clean driving record
- No new drivers being added
You could stay in the exact same Rate Lock price for 3–5 years or more—even as rates rise for everyone else.
Now compare that to someone adding a teen driver next year or moving to Milwaukee for a new job. Rate Lock may not be as valuable if changes are expected soon—because it will unlock anyway.
Can You Add Rate Lock Mid-Term?
No, you can only add Rate Lock when your auto insurance renewal is issued, not in the middle of your policy period. So if you’re interested in locking in your rate, let us know before your next renewal expiration date.
Also, not all drivers or states are eligible. Your driving history, vehicle type, and location all factor in, so it’s worth having your agent double-check your options.
How to Get the Best of Both Worlds
Even if you don’t qualify for Rate Lock, Erie’s Exchange model still protects you from big surprises. And if you do qualify, you get even more control over your budget.
The bottom line: both Rate Lock and Exchange are valuable tools designed to protect you—but in different ways.
At NS Insurance, we help you choose what works best based on:
- How stable your household and driving situation is
- Whether you expect changes soon (like a new car or move)
- Your desire for predictability vs. flexibility
Have Questions? We’re Here to Help.
Understanding the fine print of auto insurance can be overwhelming, but that’s why we’re here.
At NS Insurance, we believe in transparency, simplicity, and putting your needs first. Whether you want to explore Rate Lock options, review your current coverage, or just ask, “Why did my rate go up?”, we’ve got your back.
Final Thought
In a world where so much feels out of your control, Rate Lock gives you back some power—and Exchange helps cushion the ride.
And that’s what good insurance should do: protect your peace of mind.