Premium
The price you pay for insurance, commonly billed monthly or annually.
Also called
insurance premium
What it means
The price paid to keep an insurance policy in force.
Example
If an annual premium is $1,200, the insurer may allow it to be paid monthly.
Canada context
Insurance wording and mandatory coverage can differ by province, insurer and policy form. Read the declarations, endorsements and full policy wording that apply to you.
Common confusion
A premium is the price of insurance; a deductible is the amount you may pay when making a covered claim.
Important
This plain-language explanation is general information, not legal advice or a substitute for your policy wording. Ask a licensed insurance professional about your situation.
Last reviewed August 17, 2026
Sources
General information only. Coverage and terminology can differ by province, insurer, and policy wording. Consult your policy and a licensed insurance professional.