What is an insurance premium?
Insurance premium: An insurance premium is the amount you pay for an insurance policy, usually monthly, every six months or yearly.
Insurers set auto premiums using factors such as your driving record, vehicle, location, coverage choices and deductibles. Where allowed by state law, some also consider credit-based insurance scores.
Changing coverage limits or deductibles changes the premium, so quotes are only comparable when the coverage is the same.
When you compare offers
Request the same coverage types, limits and deductibles from each provider so you can compare premiums side by side.
Related guides
- How to Compare Auto Insurance Quotes Fairly
How to compare auto insurance quotes apples-to-apples, covering coverage limits, deductibles, common rating factors and discounts.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.