How are rates developed?
Insurance companies use underwriting and rating rules to help decide if they will insure you and how much they will charge. Underwriting is a process in which an insurance company determines if the risk you present meets the standards or guidelines it has established for you to obtain or retain auto insurance with the company. These rules may be different for each company, but each company must apply its rules in the same way to everyone.
Underwriting rules and rates for auto insurance policies must be filed with and approved by the Department of Insurance and Financial Services (DIFS) before they can be used.