Our methodology
How our calculators work, where our data comes from, and what they cannot tell you.
Data sources
NAIC 2025 Auto Insurance Database Report
State-level average auto insurance premiums by coverage type. This is the primary source for state average auto insurance figures.
NAIC 2025 Homeowners Insurance Report
State-level average homeowners insurance premiums and coverage data.
Insurance Information Institute (III.org) 2025
National averages for all coverage types, trend data, and supplemental state data.
J.D. Power 2025 U.S. Auto and Property Insurance Studies
Customer satisfaction scores used in insurer profile data.
AM Best 2025 ratings
Financial strength ratings for all insurer profiles.
NAIC Complaint Database
Complaint index figures for all profiled insurers.
How calculators produce estimates
Each calculator starts with a state-level base rate drawn from NAIC data. This base rate represents the average cost for a standard policy in that state. Individual risk multipliers are then applied based on your inputs.
Auto insurance
Multipliers applied: age group (from actuarial age-risk curves), vehicle type, coverage level, driving record, and annual mileage. Each multiplier is derived from published industry data on how these factors correlate with claims frequency and severity.
Life insurance
Estimates use published benchmark rates for term policies by age bracket, gender, and tobacco status, scaled proportionally to coverage amounts using the DIME method for needs calculation.
Home insurance
Estimates start from state averages and adjust for home value, construction type, age, deductible, and coverage level using industry-published adjustment factors.
Limitations
- Our calculators do not use your specific address or zip code for rating, which is a significant factor insurers use. Your rate within a state can vary 20–50% based on your specific location.
- We do not access your actual credit-based insurance score, which affects auto and home insurance rates significantly in most states.
- Our estimates use state-average base rates. If you live in a high-cost urban area within a lower-cost state, you may pay more than our estimate.
- Insurer-specific pricing algorithms are proprietary and not available to us. Our estimates reflect industry averages, not any specific company's current rate filings.
- Data is updated quarterly. Recent rate increases from natural disasters, inflation, or regulatory changes may not be fully reflected.
Update frequency
State average data is updated quarterly using the most recent available NAIC and III publications. Insurer profile data (ratings, scores, complaint indices) is updated annually. Calculator formulas and multipliers are reviewed annually against published actuarial research.