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Car insurance glossary

What is insurance risk class?

An insurance risk class is a group of policyholders with similar characteristics used in underwriting or pricing.

Also called: rating class

Glossary date: June 15, 2026

How it works

An insurer may classify risks using factors permitted by state law. The classes and their pricing effects differ among companies.

Example

Two drivers with different vehicle use and driving histories may fall into different rating classes even if they choose the same limits.

Why it matters

A classification can affect premium, but it is only one part of the full rating calculation.

What to check on your policy

Verify the facts behind the policy classification and ask the insurer to correct inaccurate records.

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.

Sources and further reading