Meaning & use

premium

noun, adjective·Academic

Last updated

UK/ˈpriːmiəm/
US/ˈpriːmiəm/

Meanings

  1. 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.

  2. 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.

  3. 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

pluralpremiums

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?

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