What Is Auto Insurance Underwriting?

Insurance underwriting is the process where the insurance carrier chooses whether or not to insure a certain customer and how much to charge for the service.

The underwriter is the person “behind the scenes” who calculates the risk a driver poses to the company, based on the driving record, as well as the surcharges – if any – following a claim. The underwriter is the person who quantifies risk and is able to translate factors like age, gender, driving records, previous claims or type of vehicle insured into numbers and compare them against the company’s standards.