Meaning & use
insurance premium
Last updated
Meaning
nouncountablefinance
The amount of money you pay regularly to an insurance company so that you are covered against a loss.
Grammar: Takes an or the: the premium is due monthly.
Patterns
- pay an insurance premium
- an insurance premium of an amount
My car insurance premium goes up every year.
She paid the annual insurance premium in January.
A clean driving record can lower your insurance premium.
Word forms
| plural | insurance premiums |
|---|
Common combinations
- pay an insurance premium
- We pay an insurance premium every month.
- raise the insurance premium
- The company raised the insurance premium after the claim.
- high insurance premium
- Young drivers face a high insurance premium.
- monthly insurance premium
- The monthly insurance premium is $120.
- reduce your insurance premium
- A safe home can reduce your insurance premium.
Synonyms and how they differ
- premium
- Premium alone is the shorter form and is common when the insurance context is already clear.
- payment
- Payment is a general word for any money paid, while an insurance premium is specifically for coverage.
- cover cost
- Cover cost is an informal expression and is less precise than the technical premium.
Opposites
Word family
Commonly confused: insurance premium or deductible?
insurance premium vs deductible
A deductible is the amount you pay yourself when making a claim, while a premium is what you pay to keep the policy.
Practice
Each month Laura pays $90 to keep her health cover. That payment is her insurance ___.
Choose one answer.
The regular payment for coverage is the premium. A claim is a request for money and a benefit is what the insurer pays.
Make it your own
Write a sentence using “insurance premium”, then check it and compare it with the examples above.