What is a premium? Understand how premiums work?

Premium is the amount you pay to enjoy the coverage of a commercial vehicle insurance policy. This amount is decided based on numerous factors such as the cubic capacity of the vehicle, its IDV, the deductible of the plan, etc.  Premium is usually paid annually. However, you can also avail of long-term plans wherein the premiums are paid after longer intervals of up to 3 years or more.