The amount charged by an insurance company, usually either annually or semiannually, in exchange for insuring the policyholder.
Insurers base premium price on statistics, in addition to individual habits and history. Policyholders who are younger, more inexperienced, live in high-risk areas, smoke or drive expensive cars pay higher insurance premiums than those who don’t—regardless of the type of insurance they purchase.
Premiums can vary widely from one insurer to another, so experts advise getting several premium quotes before purchasing insurance. As insurance premiums are always in a state of flux, rates also tend to vary from one renewal period to the next.