Premium
The amount you pay your insurance company in exchange for coverage — usually monthly, every six months, or annually.
Your premium is the price you pay to keep an insurance policy active. Most personal-line policies (auto, home, renters) bill either monthly, every six months, or annually. The total annual premium is what most people compare when shopping carriers, but the per-payment amount can vary depending on whether you choose paid-in-full (often discounted), every-six-months, or monthly with a service fee.
Premium is set by the carrier's underwriting model, which weighs dozens of factors: your age, credit-based insurance score, driving record, the property's location and construction, prior claims, and discounts you qualify for. Two carriers quoting the same coverage on the same person can come back hundreds of dollars apart simply because their underwriting models weigh those factors differently — which is why working with an independent agency that quotes 25+ carriers like Geneva can save you money without changing what you're actually buying.
Premium is not the same as deductible (what you pay when you file a claim). And lower premium isn't always better — a cheap policy with sky-high deductibles or thin coverage limits can cost you tens of thousands when you actually need it.
Related terms:Deductible·Policy·Coverage·Insurance Score
Related Geneva services:Auto Insurance·Home Insurance