What is an expense constant?

The expense constant is the administrative cost of your policy. This fee is regulated by states to ensure it’s fair, and it can range from $100 - $350 per year. You’ll find the expense constant listed as a line item on your policy rating information page. 

Certain insurance carriers will include the expense constant in your blended (billing) rate, while others charge it separately as a flat rate. If you’d like to know exactly how your carrier handles the expense constant, contact a service team member. 

Note that the expense constant was included in the total estimated premium when you received your original quote for the policy.