C1noun2K

Premium

UK /["/ˈpriːmiəm/"]/US /["/ˈpriːmiəm/"]/

Definition

an amount of money that you pay once or regularly for an insurance policy

In simple words: Something that is of higher quality and costs more.

Examples

  • He paid a higher premium for the comprehensive insurance plan.
  • The car insurance premium increased after his accident.
  • Subscribers must pay a monthly premium to access the streaming service.
  • The premium on the stock option was much higher due to market volatility.
  • She negotiated a premium for delivering the project earlier than the deadline.
  • The company offers a premium for employees who exceed their sales targets.

Usage notes

Often used to describe products or services that are superior in quality. Suitable in marketing contexts, but may sound boastful if used excessively in casual conversation.

Grammar pattern

standalone adjective

Memory hint

Think of 'premium' like the first-class seat on a plane – you pay more for extra comfort.

Collocations

  • annual
  • monthly
  • regular
  • pay
  • afford
  • keep up
  • go up
  • increase
  • rise
  • payment
  • rate
  • increase
  • premium for
  • premium on
  • hefty
  • high
  • small
  • pay
  • charge
  • place
  • at a premium
  • premium of
  • premium on

Synonyms

  • superior
  • deluxe
  • high-end
  • luxury
  • exclusive

Antonyms

  • basic
  • standard
  • inferior

Common mistakes

  • Confused with 'premiumize' (non-standard usage)
  • Using 'premier' when referring to quality instead of 'premium'
  • Saying 'the premium car' when it should be 'a premium car'