The average American spends about 12% of their yearly income – or $5,261 – on personal lines insurance, according to
a new study from NerdWallet. That includes $1,100 for auto insurance; $2,823 for health insurance; $1,034 for home insurance and $304 for life insurance.
Those amounts can fluctuate greatly depending on location, however – something independent insurance agents may wish to point out in explaining costs.
The 10 states where residents pay the most to carry auto, home, health and life insurance policies include:
- Louisiana – 18.1% of earnings, $7,300 annually
Auto: $2,264
Homeowners: $1,742
Health: $2,990
Life: $304
- New York – 17.4% of earnings, $8,495 annually
Auto: $1,906
Homeowners: $1,158
Health: $5,142
Life: $289
- Florida – 17.1% of earnings, $6,602 annually
Auto: $1,417
Homeowners: $2,084
Health: $2,797
Life: $304
- Rhode Island – 16.7% of earnings, $7,987 annually
Auto: $2,513
Homeowners: $1,233
Health: $3,937
Life: $304
- New Jersey – 15.8% of earnings, $8,705 annually
Auto: $1,742
Homeowners: $981
Health: $5,678
Life: $304
- Vermont – 15.7% of earnings, $6,713 annually
Auto: $818
Homeowners: $782
Health: $4,809
Life: $304
- Oklahoma – 15.4% of earnings, $5,778 annually
Auto: $1,465
Homeowners: $1,501
Health: $2,508
Life: $304
- Massachusetts – 15.0% of earnings, $8,168 annually
Auto: $1,237
Homeowners: $1,150
Health: $5,477
Life: $304
- Michigan – 14.9% of earnings, $6,648 annually
Auto: $3,096
Homeowners: $802
Health: $2,445
Life: $304
- Mississippi – 14.8% of earnings, $5,222 annually
Auto: $1,043
Homeowners: $802
Health: $2,561
Life: $304
The study also found that the cost of insurance can fluctuate greatly by state – up to $4,763. For example, New Jersey residents top the list at $8,705 in annual premiums while Utah policyholders pay just $3,942 a year.
Similarly, the cost of insurance as a percentage of income differs. Louisiana policyholders give up the greatest portion of income – 18.1% - and Maryland consumers pay 7.7%.
NerdWallet suggests that shopping smart, perhaps through an independent agent, is one way consumers can exert some degree of control over geographical differences in pricing.
