Car insurance glossary
What is car insurance premium?
A car insurance premium is the price an insurer charges for a policy.
Also called: auto insurance premium
Glossary date: January 5, 2026
How it works
You may pay the premium monthly, by installment, or for the full policy period. The amount depends on the drivers, vehicles, address, coverage choices, limits, deductibles, and other rating factors allowed in your state.
Example
A six-month policy costs $720. Paying $120 each month covers the base premium, although an installment fee may also apply.
Why it matters
A low monthly payment can hide a higher total policy cost. Compare the full premium, fees, coverage, and limits before choosing a policy.
What to check on your policy
Find the total premium and payment schedule on the declarations page. Check whether installment or late fees apply.
Related car insurance terms
Put the terms into context
Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.