An insurance policy’s insurance rate is the link between the type and amount of insurance bought, and the amount of insurance premium (regular payments) that is paid in to the policy. It is basically a ratio that takes in to account the type of insurance, the risk factors associated and the likelihood of the policy holder to payout on the policy, which is then used as a factor to determine how much premium is to be charged on the policy. If somebody works a very dangerous job and is prone to injury or death they will be charged a very high premium, so much that it might be impossible for the person to get life or medical insurance. It is often a catch 22 situation, where those that need insurance cannot obtain it and remain financially stable at the same time.
The actual insurance rate is more of an internal figure that the insurance company uses in calculation, and isn’t really something the general public are aware of, unless they enter in to negotiations with an insurance company and the rate is specifically discussed. Generally speaking the main figure discussed and used in marketing is the cost of the premium, which is really the only figure needed to decide whether a policy is financially viable for the customer.
Although you may come across the term insurance rate through marketing, on websites or when using comparison tools, in the true sense of the word you’re really being given the premium and not the rate. Or if there is a rate given, it is more of a promotional tool, or depthless jargon.
The term itself is often used in everyday speech, such as “my insurance rate skyrocketed after that crash,” however it is more a theoretical reference to a premium increase, or a deductible increase.