# premium

/ˈpɹimiəm/ (US) · /pɹˈiːmiəm/ (UK)

Source: https://englishreference.com/word/premium
Updated: 2026-06-19

## Senses

### 1. insurance cost

noun · CEFR B2

the amount of money you pay regularly for an insurance policy.

For teachers: the periodic payment made by an insured party to an underwriter for coverage.

- If you have a car accident, your monthly insurance premium might go up.
- The actuary calculated that the annual premium would need to increase by ten percent to cover the projected risks of the new policyholders.

Usage: Often used with 'monthly' or 'annual'.

### 2. extra value or cost

noun · CEFR C1 · Formal

an extra amount of money added to the normal price.

For teachers: an amount paid in addition to the standard price or par value.

- During the busy holiday season, hotel rooms are often at a premium.
- Investors were willing to pay a significant premium for the shares, betting on the company's long-term growth potential despite current losses.

Usage: Commonly used in the phrase 'at a premium'.

Teaching tip: When something is 'at a premium', it means it is rare and people are willing to pay more for it.

### 3. high quality

adjective · CEFR B2

of very high quality or more expensive than usual.

For teachers: denoting a product or service of superior quality and higher price point than standard versions.

- The airline offers a premium service for passengers who want more legroom.
- The brand successfully repositioned itself in the premium market by using organic materials and artisanal manufacturing techniques.

Usage: Usually placed before the noun.

## Examples

- You must pay a premium for organic vegetables.
- The insurance company raised her monthly premium after she filed a claim for the car accident.
- In a competitive market, consumers are often willing to pay a significant premium for brands that demonstrate a commitment to ethical sourcing and environmental sustainability.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.