Premium means something of higher quality or value than the standard version, and it usually costs more. When you buy premium ice cream, you're getting richer ingredients and better flavor than basic brands. A premium seat at a concert puts you closer to the stage than regular seats. Premium gasoline contains special additives that some high-performance cars need.

When you pay a premium price, you're paying extra for something better. Companies might charge a premium for faster shipping or better customer service. A premium subscription to a website gives you features that free users don't get.

In insurance, a premium is the regular payment you make to keep your coverage active. Your family might pay a monthly premium for health insurance or car insurance. This meaning connects to the idea that you're paying in advance so the company will help you later if something goes wrong.

Sometimes people say something is “at a premium” when it's scarce or in high demand. During a drought, water is at a premium. Before a big test, quiet study space might be at a premium in the library. The phrase means it's especially valuable right now because there's not enough of it to go around.