Glossary
Premium
The amount you pay your insurance company for coverage, typically monthly, every six months, or annually.
What is premium?
A premium is what you pay your insurer in exchange for coverage. Auto premiums can be paid monthly, every six months, or annually — paying annually or every six months usually earns a small discount.
Details
Your premium is set by the insurer based on the perceived risk of insuring you: your driving record, credit score (in most states), location, vehicle, coverage limits, and deductible all factor in. Higher deductibles lower your premium; lower deductibles raise it.