Definition:
 

Insurance Premium

The fee that an insured pays regularly to their insurance carrier in exchange for coverage.

Insurance Premium

The fee that an insured pays regularly to their insurance carrier in exchange for coverage is known as the premium. The premium rate is determined by the carrier based on various factors including the amount of coverage desired; the age, construction, and condition of a property; environmental factors; deductible amount; and more. Premiums can usually be paid in a single upfront installment or monthly, with options varying by insurer.