# What is insurance underwriting?

> Insurance underwriting is the process an insurer uses to decide whether it will offer or continue coverage and on what permitted terms.

Glossary date: June 15, 2026.

## How it works

The insurer reviews application details and other allowed information about drivers, vehicles, use, location, and loss history. Rules differ by state and company.

## Example

An insurer verifies driving records and vehicle information before finalizing a quote and issuing the policy.

## Why it matters

Missing or inaccurate information can change the price, eligibility, or treatment of a later claim.

## What to check on your policy

Answer application questions accurately and review all listed drivers, vehicles, addresses, use, mileage, and prior coverage.

Coverage, definitions, limits, and legal requirements vary by policy and state. Your declarations page and policy forms control your coverage.

## Related terms

- [Insurance risk class](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-risk-class.md)
- [Driving record](https://locations.goautoinsurance.com/car-insurance-glossary/driving-record.md)
- [Car insurance rate](https://locations.goautoinsurance.com/car-insurance-glossary/car-insurance-rate.md)

- [Car insurance guide](https://locations.goautoinsurance.com/car-insurance-guide.md)
- [Complete glossary](https://locations.goautoinsurance.com/car-insurance-glossary.md)