Okuzeka
Insurance vocabulary · Premiums & Pricing

Premium

Meaning in insurance, with examples

/ˈpriːmiəm/nounCore term

In insurance, premium means: The amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.

In Turkish: prim, sigorta primi

How it is used

The price of insurance. Premiums are calculated, quoted, charged and paid, and they go up or down at renewal. Industry reports talk about premium income and premium growth.

Example sentences

  1. Your annual premium is 8,400 lira, and you can pay it in nine monthly instalments.

  2. Premiums for older cars have gone up sharply because repair costs have risen.

Common collocations

  • pay a premium
  • annual premium
  • premium increase
  • premium income
  • monthly premium
  • policyThe written contract between an insurance company and a customer that sets out what is covered, for how long, for how much and on what conditions.
  • quoteA statement of how much a policy will cost and on what main terms, given to a customer before they decide to buy.
  • grace periodExtra time after a premium is due during which the customer can still pay and the policy stays in force.
  • deductibleThe part of each loss that the customer pays before the insurance company starts paying. A higher one usually means a lower premium.
  • underwritingThe process of studying a risk, deciding whether to insure it and setting the price and conditions of the policy.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Premiums & Pricing

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.