Premium
A premium is the amount you pay for an insurance policy, either as a lump sum or in instalments.
Also known as: insurance premium, premiums
Your premium reflects the risk to the insurer. Factors include what you are insuring, your claims history, where you live and how much cover you choose. Paying monthly usually costs more than paying annually, because the instalments include interest.
Compare policies on cover and exclusions as well as price. A cheap policy that does not pay out when you need it offers little value.
Check the policy documents and the key facts before you buy, and compare the cover as well as the price.
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10 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.