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annual premium

An annual premium is the total amount of money due for one year of insurance coverage under a policy.

In plain English

This is the full price charged for the policy over a 12-month period. It means the whole amount owed for that year's insurance cover, treated as one annual total.

In context

Here, it labels the total amount due for one year of coverage under the quoted policy.

Situation
Reading premium, deductible, excess, copay, limit, and out-of-pocket fields
What it communicates
labels the one-year policy price in the quote summary

Meaning limits

By itself, the term does not say when the money must be paid or whether it is paid all at once or in parts.

Examples

“Even though they pay in monthly instalments, the annual premium on the policy is £960.”

Core meaning

“The broker quoted an annual premium of £960 for the policy.”

In context