What is an insurance premium?
Quick answer:
The amount you pay to keep your insurance policy active, billed monthly, semi-annually, or annually.
A premium is the amount you pay for your insurance coverage, billed monthly, semi-annually, or annually. It is the cost of keeping your policy active regardless of whether you file a claim. Carriers set your premium based on your risk profile — driving record, claims history, property age and condition, credit score in most states, and the coverage limits and deductibles you select.