Research Methodology
Last updated
This page explains how we find, select and present the information in our guides.
Sources we use, in order of preference
| Priority | Type of source | Examples |
|---|---|---|
| 1 | Laws, regulators and government agencies | State insurance departments, state motor vehicle agencies, federal agencies |
| 2 | Regulatory associations and official statistics | National Association of Insurance Commissioners (NAIC) reports |
| 3 | Established research and industry education bodies | Insurance Research Council, Insurance Information Institute |
| 4 | Private data providers | Used only when a higher source has no data, and always named |
When two sources disagree, we use the higher one and, where it helps the reader, explain why the numbers differ.
How we handle prices and averages
There is no single true price of insurance. Published averages differ because they measure different things:
- Regulatory averages, such as the NAIC's average expenditure, divide the premiums that insurers actually collected by the number of insured vehicles. They reflect what people really paid, including drivers who bought only minimum coverage. They are published roughly two years after the period they describe.
- Quote-based averages from private publishers price a sample driver with a specific age, vehicle, record and coverage level. They are more current but describe that profile, not the typical customer.
We state which kind of figure we are citing, the year it describes and the limits the publisher places on it. Any calculation that we make ourselves from published data is labeled as our calculation.
Geographic information
Insurance is regulated by each state, and prices vary between neighborhoods. We cite state-level figures when an official source publishes them. We do not publish city-level prices unless a reliable source provides them, and we do not create location pages by swapping place names into the same text.
Comparing companies
We do not rank insurers. Instead, our guides explain the public information that anyone can check, such as complaint data collected by regulators and financial strength ratings, and how to weigh it alongside price.
Limits of our work
Our guides describe general rules and published statistics. They cannot predict the premium a specific person will be offered, and they are not a substitute for the wording of a policy or for advice from a licensed professional. See our disclaimer and editorial guidelines.