The terms rates and premiums are virtually interchangeable.

A definition of "rate" is to fix the amount of premium to be charged per unit of insurance. Some agents use rate to refer to the amount you will be charged and premium as the amount you have paid or agreed to pay. For example, they will say this is your "rate" and when you pay that is your "premium.'

The definition of "premium" is consideration paid for a contract of insurance. Another definition is the price of insurance an insured person pays for a specified risk for a specified period of time.

Your insurance company may speak of your rate or your premium or even your premium rate.

Either term is referring to the amount you will pay for your insurance coverage for the specified time listed on your policy, normally a 6 or 12 month interval.

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Articles in our Learning Center, such as Ways in Which to Lower Your Car Insurance Rates, may be helpful to you as well.