What is a blended rate?

In the Pay As You Go billing system, we “blend” any taxes, surcharges, assessments, and credits into your base rate. These are included in the total estimated premium shown on your policy. You can find a breakdown of these fees on the information page, as well as in the proposal presented in your original quote. So what you’ll see on your bill is known as the “blended rate.”

How it works is: we calculate those additional charges, add them to your total premium, and then spread the payments out over the life of your policy, so you’re truly “Paying As You Go” for the total cost of your coverage.

This helps protect your cash flow, and reduces the chance that you’ll owe additional money at your policy’s annual audit time. But this is why the per-payroll cost appears slightly higher than what’s shown on your policy.