Why is my rate different than what I was quoted?

Okay. This gets a *little* complicated, but bear with us!

There are actually two versions of a “rate”:

1. The base class code rate, which is based on the rate per $100 in payroll. This is the rate that shows up on your quote and policy.
   
   
2. The blended rate, which is the base class code rate PLUS all the fees, taxes, and credits, etc. included. This is the rate that we actually collect premium at.  

Let’s walk through an example to see how this works:

If you have employees who are all classed as 8810, the base rate may be ten cents per $100 in payroll, and the total premium from the payroll may be $1000 per year.  

The premium based on your payroll and base class code rate may be $1000, but that’s not the full cost of your policy. Including all taxes and surcharges, your annual total could come to $1250. In the blended rate, that extra $250 gets factored in, and becomes $0.125 (twelve and a half cents) per $100 in payroll.    

You can also see this information break-down on the main information (or scheduled rating) page of your policy.

The blended rate may increase or decrease the base class code rate depending on the individual policy.