CANADIAN INSURANCE TERM
Premium
The amount charged by an insurer for providing insurance coverage for a specified period, subject to the policy terms and applicable taxes or fees.
Plain-language definition. A real policy, endorsement and provincial law can use more specific wording than a glossary summary.
TermPremium
ContextCanadian insurance
Source typeIndustry glossary
Policy wordingControls claim
What does Premium mean?
The amount charged by an insurer for providing insurance coverage for a specified period, subject to the policy terms and applicable taxes or fees.
Your premium is the price of the policy. It is not the same as a deductible, coverage limit or amount paid after a claim.
Premium in practice
If an annual policy premium is C$2,400, that is the price charged for the year before considering how it may be paid monthly or in instalments.