premium

premium — noun

1. money you pay or receive on top of what something would normally cost — for exam

1.nounC1
Definition

money you pay or receive on top of what something would normally cost — for example, a buyer paying extra for a rare item, or shares trading above their listed price.

Example

Collectors are willing to pay a premium of fifty dollars for the rare baseball card.

pattern: a premium of + amount

Diego sold his tech shares for three dollars above the listed price, pocketing a tidy premium.

collocation: pocket / earn a premium

Common collocations
  • pay a premium
  • at a premium
  • a premium of [amount]
  • command a premium
  • a steep premium
  • a small premium
Synonyms
  • surcharge

    more formal; an official added fee charged on top of a base price

  • markup

    the extra amount a seller adds above cost, focused on profit margin

  • extra

    informal; any additional amount, less specific than premium

Antonyms
  • discount

    an amount taken off the regular price rather than added

Grammar Patterns

a premium of + amount

premium on + noun

at a premium

Usage Note

Subject is usually money, a price, or shares; very often appears with 'pay' or in the fixed phrase 'at a premium'. Distinguish from sense 2: this is any extra amount, while sense 2 is specifically the regular fee for an insurance contract.

Common Mistakes

I paid a premium price of money for the ticket.
I paid a premium for the ticket.
'premium' here already means the extra money, so adding 'price of money' is redundant.

2. the regular sum of money a person or company hands over to an insurance company

2.nounC2
Definition

the regular sum of money a person or company hands over to an insurance company so that the company will cover losses from things like accidents, illness, or damage.

Example

Carlos pays his car insurance premium at the start of every month.

monthly premium collocation

After the second accident, the insurance company raised Lina's premium by thirty percent.

raise / lower a premium

Common collocations
  • insurance premium
  • monthly premium
  • annual premium
  • pay a premium
  • raise / lower the premium
  • high / low premium
Synonyms
  • contribution

    less specific; can refer to any regular payment into a fund

  • instalment

    any scheduled payment, not specific to insurance

Grammar Patterns

pay a premium

monthly / annual premium

Usage Note

Almost always countable and almost always paired with 'insurance' or a type of insurance (health, car, life). Often modified by 'monthly', 'annual', 'high', 'low'. Distinguish from sense 1: this is a fixed insurance payment, not an extra amount above a normal price.

Common Mistakes

I paid a premium to the doctor for the treatment.
I paid a premium to the insurance company.
premiums go to insurers, not directly to doctors or hospitals.

3. the most expensive, top-grade petrol or gas sold at filling stations — designed

3.nounC2
Definition

the most expensive, top-grade petrol or gas sold at filling stations — designed for high-performance engines and priced higher than the regular kind next to it on the pump.

Example

Marcus always fills his sports car up with premium at the corner garage.

fill up with premium

When Hana bought her new BMW, the dealer warned her that the engine must run on premium, never regular.

run on premium

Common collocations
  • fill up with premium
  • run on premium
  • premium unleaded
  • a tank of premium
Synonyms
  • high-octane

    technical term focused on the octane rating rather than the brand grade

  • super

    British informal label for premium grade petrol at the pump

Antonyms
  • regular

    the cheaper, lower-grade fuel sold next to premium at most stations

Grammar Patterns

fill up with premium

run on premium

Usage Note

Uncountable in this sense (no plural and no 'a premium'). Often contrasted with 'regular' or 'standard'. Mostly used with verbs like 'fill up with', 'run on', 'buy', 'use'.

Common Mistakes

My car drinks two premiums every week.
My car uses two tanks of premium every week.
premium fuel is uncountable; count the tanks, litres, or gallons instead.
Idioms

Something is hard to get because there is not enough of it.

Parking spaces are at a premium in this crowded city.

Why is fresh water at a premium during the dry season?

premium — adjective

Synonym discussion

Sense: adjective/1

All five describe goods or services that stand above the ordinary range, but they signal different things. 'Premium' is the marketing-and-pricing word: it labels a tier explicitly priced above standard, as in 'a premium account' or 'premium fuel'. 'High-end' is close in meaning but focuses more on market segment than on the product itself, often used for whole brands ('a high-end restaurant'). 'Deluxe' adds a sense of luxury, comfort and extras — natural for hotel rooms, car trims, and gift sets ('a deluxe suite'). 'Superior' is more formal and judgmental: it claims the thing is clearly better than its rivals, often in writing ('a superior model'). 'Top-quality' is the most neutral and descriptive — purely about the product's standard, with no marketing flavour ('top-quality cotton').

Common collocations

Nouns

  • premium quality
  • premium brand
  • premium service
  • premium price
  • premium account
  • insurance premium
  • premium customer

Phrases

Prepositions

  • at a premium
  • premium on [something]
  • premium of [amount]
  • premium for [something]

Etymology

LatinEnglish

Premium came into English in the early 1600s from Latin 'praemium', meaning a reward, prize, or profit — built from 'prae-' (before) and 'emere' (to take or buy), so literally 'something taken in advance'. It was first used in English for a reward or bonus, then by the late 1600s for the regular sum paid to insure a ship or its cargo. From there it broadened into today's senses: any extra amount paid above a normal price, and, as an adjective from the early 1900s, anything sold as top quality at a higher price.