What does Estimated Premium mean? Read on to discover the definition & meaning of the term Estimated Premium - to help you better understand the language used in insurance policies.
An estimated premium is a rough estimate of a premium cost that an insurer provides to give a prospective policyholder an idea of how much premiums would cost for a policy. However, insurers are not legally obligated to keep premiums at a set amount until both parties sign a binding insurance contract.
We hope the you have a better understanding of the meaning of Estimated Premium.