← All glossary terms
What is Premium?
A premium is the amount you pay — monthly, quarterly, or annually — to keep your insurance policy in force. It does not count toward your deductible or out-of-pocket maximum.
Examples
- A $180/month auto premium costs $2,160 per year.
- Homeowner premiums can be paid through escrow with your mortgage.
- Missing premium payments can cause a policy to lapse.
Why this matters
ReadMyPolicy helps you see whether your premium is buying real coverage or just the minimum — you'd be surprised how often a cheaper premium hides worse protection.
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