Insurance Glossary

Premium

The amount you pay your insurance company for coverage, usually monthly or every 6 months.

Premium

Your premium is what you pay the insurance company in exchange for coverage. It is typically billed monthly, every 6 months, or annually.

Premiums are based on many factors: your driving record, credit tier (in most states), vehicle, location, coverage limits, and deductible.

Paying your full premium up front instead of monthly usually saves 5–10%.

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