Definition
Premium
A premium is the amount you pay the insurer to keep cover in force, annually or in instalments. It is shaped by the insured risk, the sum insured, the deductibles and the covers you choose. Two very different premiums often hide different covers or deductibles.
The premium is the most visible number and therefore the most misleading. The cheapest premium may mean a higher deductible, a lower sum insured or more exclusions. Comparing on price alone is like comparing two cars only by their weight.
In your own policy, read the premium together with the sum insured and the deductibles — the three together tell the truth, not one alone. Before each renewal, compare terms and limits, not just the amount.
Upload your policy — free analysisFrequently asked questions
Why did my premium rise at renewal?
Often due to cost inflation, claims history or changed covers. Ask your insurer to break down the change.
Related
Educational content, not insurance advice. PolicyWallet explains what the term means and helps you find it in your own document — it does not assert what your policy covers.