# Insurance Premium

*Insurance — Finicade finance glossary*

An insurance premium is what you pay for cover, priced from your expected losses plus the insurer's costs and profit. Because it reflects expected loss, anything that changes your risk profile changes the price — a claim, a postcode, a credit score in some markets. Raising your deductible is usually the most efficient premium lever, since it removes the small frequent claims that carry the highest administrative cost per dollar.

**Also known as:** premiums, policy premium

**Related terms:** [Insurance](https://finicade.com/glossary/insurance), [Deductible](https://finicade.com/glossary/deductible), [Underwriting](https://finicade.com/glossary/underwriting), [Loss Ratio](https://finicade.com/glossary/loss-ratio), [Insurance Claim](https://finicade.com/glossary/claim)

Source: https://finicade.com/glossary/insurance-premium