Meaning & use
premium
Last updated
Meanings
nouncountablefinance
A regular payment you make to an insurer to keep a policy active.
Grammar: Countable: pay a premium, monthly premiums.
Patterns
- premium on something
- a premium for something
Our car insurance premium goes up every year.
She pays a monthly premium of about sixty dollars.
Smokers often face higher premiums for health cover.
nouncountable
An extra amount paid above the usual price or rate, for quality, speed or scarcity.
Grammar: Usually singular: pay a premium for fresh produce.
Patterns
- a premium for something
- pay a premium
Shoppers pay a premium for organic vegetables.
Tickets sold at a premium on the day of the match.
Skilled electricians can command a premium for evening work.
adjectivebefore a noun
Of higher quality, or more expensive, than the standard version.
Grammar: Used before a noun: premium fuel, a premium brand.
Patterns
- premium quality
The shop sells premium coffee beans from small farms.
He upgraded to a premium subscription with no ads.
Premium seats are close to the stage.
Word forms
| plural | premiums |
|---|
Common combinations
- pay a premium
- You will pay a premium for a quick delivery.
- insurance premium
- The insurance premium rose after the accident.
- at a premium
- Parking space is at a premium in the old town.
- premium quality
- The chocolates are made from premium quality cocoa.
- premium service
- The airline offers a premium service for frequent travelers.
- put a premium on
- Our school puts a premium on honesty.
Synonyms and how they differ
- surcharge
- A surcharge is an extra fee added to a bill, often unwelcome, whereas a premium can be paid willingly for better quality.
- premium (adjective): luxury
- Luxury implies indulgence and high comfort, whereas premium simply means above standard.
- top-quality
- Top-quality describes excellence only, while premium also hints at a higher price.
- instalment
- An instalment is one part of a larger payment, while a premium is the recurring cost of insurance.
Opposites
Word family
- premiums noun
- plural form for insurance payments
- premiumize verb
- to make a product more upscale, a rare business word
- underinsured adjective
- insured for less than the risk requires
Commonly confused: premium or premier?
premium vs premier
Premier means first in importance or a head of government; premium relates to higher cost, quality or insurance payments.
Practice
What does it mean if good housing is 'at a premium' in a city?
Choose one answer.
At a premium means in short supply and so highly valued. The other options do not describe scarcity.
Make it your own
Write a sentence using “premium”, then check it and compare it with the examples above.