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Insurance Premium

What Is an Insurance Premium?

Your insurance premium is the amount you pay to the insurance company to keep your policy active.

You can typically pay this in annual, quarterly, or monthly installments. The cost of your premium depends on several factors, including your level of risk and what kind of coverage you select.

Insurance premium definition.

What’s the Difference Between a Premium and a Deductible?

The deductible is the portion of a claim you are responsible for paying before your coverage kicks in.

On the other hand, an insurance premium is the amount your carrier requires you to pay for insurance coverage.

What’s the Difference Between a Premium and an Insurance Limit?

The premium is the amount you pay to keep your policy active. 

The insurance limit is the amount the insurance company will pay for a covered claim.

How Does an Insurance Premium Work?

Similarly to paying utility bills to keep power, water, and internet on, you need to pay your premium to keep your insurance. If you don’t pay your premium, the insurance company can terminate your coverage.

What Affects the Price of My Premium?

Several factors impact your insurance premiums, including:

  • Business type
  • Products manufactured or sold
  • Gross annual income
  • Location
  • Past claims
  • Deductibles
  • Coverage types selected

How Do I Find Out What My Premium Is?

You can find your premium on the declarations page of your policy and your FLIP dashboard.