In this study, insurance premium rate for wheat was calculated, using a nonparametric method, for the major wheat producer's provinces of Iran. Then, their relationships with coefficient variations (CV) of yields, as a measurement of yield fluctuations, were studied. Also, guaranteed price of wheat was estimated by using Autoregressive Moving Average [ARMA (2, 3)] method. Findings showed that there were a positive relationship between the coefficient of variations and the calculated fair premium rate. Khorasan had the lowest variability in irrigated wheat yield as well as the lowest premium rate compare to other provinces. However, wheat insurance premium rate in Khuzestan was the highest due to its high yield fluctuation. In terms of dry wheat yield, East Azerbaijan showed the lowest coefficient of variations.