Car insurance glossary
What is car insurance rate?
A car insurance rate is a pricing value an insurer uses to calculate premium for a particular risk.
Also called: auto insurance rate
Glossary date: March 23, 2026
How it works
The final premium combines approved rating factors with your coverage selections and insurer rules. Factors vary by state and company.
Example
Changing a garaging address or adding a driver changes the information used to calculate the policy premium.
Why it matters
A rate is part of the calculation, while the premium is the amount charged for the policy.
What to check on your policy
Confirm that every driver, vehicle, use, address, and annual mileage estimate is accurate before accepting a price.
Related car insurance terms
Put the terms into context
Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.