← Vocabulary Explorer

Premium

What it means
The price you pay to keep an insurance policy in force — usually billed monthly, quarterly, or annually.
Tennessee example
A Chattanooga household pays its auto premium every six months so the policy doesn't lapse before registration renewal.
Why it hits your wallet
The premium is the predictable cost; the claim is the unpredictable one — budgeting for both is the real game.

Premiums reflect the insurer’s price for the risk they’ve agreed to cover under the policy terms. Changing limits, deductibles, drivers, vehicles, or property details can change the premium — sometimes a little, sometimes a lot.

Educational sites (including TennSure) can’t tell you what your premium will be. Treat any published “average” as a rough market observation only; policies vary.