Premium Finance
Definition. Premium Finance is a separate loan agreement used to pay annual commercial insurance premium in monthly installments through a finance company.
Also known as: Premium Financing
Carrier receives full premium upfront from finance company; you repay the finance company monthly with interest (typically 6-15% APR). Different from direct-pay monthly billing offered by some carriers. Premium Finance is common for high-dollar commercial accounts where annual upfront payment isn't feasible.
Sources cited
Need premium finance coverage?
Compare quotes from 10+ commercial insurance carriers in 5 minutes. Free, no contact info required.
Get My Quotes →Disclosures
📘 Educational content only.
Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
Advertiser disclosure.
Get Business Coverage is a licensed insurance referral service. We may receive
compensation when you click links to carrier partners or complete a quote. This
compensation may impact how and where products appear on this page, but it does
not influence our editorial content or research methodology.