What is an insurance premium, and what dictates the prices on pays for them?

Hi! Thanks for the question.

Our first website provides the definition of insurance premiums.

"The periodic payment made on an insurance policy. also called
premium."
http://www.investorwords.com/cgi-bin/getword.cgi?2518

The price factors for insurance premiums can differ on the type of
insurance. The following artilces would be of assistance.

"Getting the Most for Your Money" (:ife Insurance)
http://www.insweb.com/learningcenter/articles/life-money.htm

"Cut your insurance bills with the right car"
http://moneycentral.msn.com/content/Insurance/Insureyourcar/P35210.asp

"Homeowners Insurance ABCs"
http://home.insurance.com/insurance_options/home/home_ins_basics.asp

Medical Insurance Premium
http://www.medicare.gov/basics/amounts2003.asp

Workers' Compensation insurance premiums
http://www.cutcomp.com/basics.htm

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Easterangel-ga          
Google Answers Researcher

An insurance premium is just the money you pay for insurance. The
price can differ on your age, and for a car it can also depend on your
age. People over the age of 26 have a lower insurance premium since
they've had more years experience driving.
Hope this helps
-Jeremy

Sitedude/Jeremy gave a good answer. The insurance companies charge
enough premium so as to make a profit long term. Since fraud is fairly
easy, insurance companies are closely regulated in most every country
and State in the USA. Every year or two most insurance companies apply
for a rate increase. They supply a complex analysis that tries to
convince the insurance commissioner that the insurance companies
reserves will shrink unless a premium increase is allowed. If the
increases are not allowed, all or most of the insurance companies MAY
stop doing bussiness in that State. Resently the number of HMOs
writing new policies fell to zero in Florida, and most companies are
not renewing existing HMOs for Florida residents. Millions of
Floridians who would like to buy an HMO can not.    Neil

Humanna is still supplying an HMO to seniors in Florida, but the
coverage is much more costly than a few years ago and their is no
competition.   Neil