Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during the duration of the policy. A failure to pay premium when due automatically cancels the insurance policy which, upon payment of the outstanding amount within a certain period, may be restored.

An insurance premium is the actual amount of money charged by insurance companies for active coverage. An insurance premium for the same service can vary widely among insurance providers, which is why experts strongly recommend getting several quotes before committing to an insurance policy.

Insurance agents or brokers will take your basic information and calculate an insurance premium estimate based on your answers and other factors. The lowest quoted price on an insurance premium may be the better bargain, but the level of coverage may also be lower.

Factors for automobile insurance:

Where you live: If you live in a bustling city, for example, accidents and vehicle theft are more likely, which may translate into higher premiums.

Use your car: The more time a car spends on the road, the higher the chance of an accident. That means higher premiums if you drive a lot, you drive long distances or you drive to work everyday.

Driving record: Your driving record has a big impact on the premiums you pay. For example, a long driving history with no accidents can help keep your premiums down, and every accident where you're at-fault may push your premiums up. Speeding tickets and other moving violations may also increase your premiums, but parking tickets will not.

Type of vehicle you drive: Insurers consider the make and model of your vehicle in terms of what the risk factors associated with it might be

Statistical group: Depending on what province you live in, your insurer may consider the claims history of the group to which you belong as a driver.

If you have further query please contact Canada Insurance Plan.