ERIE, Pa. – Aug. 20, 1998 -- Ohio residents insured with Erie Insurance Group may be paying less for personal auto insurance coverage as a result of rate changes that are scheduled to go into effect on October 1, 1998.

The reduced rates come as a result of an increase to the "Multi-Car Discount" and lower base rates for an overall 3 percent rate decrease. The statewide effect of the decrease will be about $2.7 million. Approximately 76 percent of Erie Insurance Policyholders in Ohio will benefit from this rate reduction. Individual premium changes will vary depending on the number of vehicles on the policy and the location of the Policyholder.

"Improving experience in Ohio has allowed us to pass along these savings to our policyholders," said Stephen A. Milne, President and Chief Executive Officer of Erie Insurance Group. "This reduction is in The ERIE's spirit of providing the best possible insurance at the lowest possible price."

The latest reductions strengthen rate changes made in 1997 when Erie Insurance introduced the SupERIEor Customer discount and increased the Multi-Policy discount to 15 percent. "We pride ourselves in being one of the lowest cost insurers in the territories in which we operate," Milne said. "These reductions will ensure that we remain the competition for other insurers."

Erie Indemnity Company is the management company for Erie Insurance Group, which includes the Erie Insurance Exchange, Erie Family Life Insurance Company, Erie Insurance Company, Erie Insurance Property and Casualty Company, Erie Insurance Company of New York and Flagship City Insurance Company. The Group operates in nine states and the District of Columbia.

Erie Insurance Exchange, based in Erie, Pennsylvania, is the 12th largest insurer of private passenger automobiles and the 24th largest property and casualty insurer in the United States.