Rate

Plain English Definition: The amount charged by an insurer for coverage, usually expressed as a percentage or per unit of coverage.

What Rate really means for someone with an insurance policy

Rates determine how much policyholders pay for insurance based on the risk profile. Higher risks typically mean higher rates.

Rate Real World Examples

• A driver with a good record paying a lower auto insurance rate.
• A home in a flood zone having a higher insurance rate.
• A healthy individual getting a lower life insurance rate.