"It's the first time that we've done this report that synthesizes all insurance costs together," said Jeff Chu, an insurance analyst at NerdWallet, a personal finance information service that also provides comparison tools for consumers.
Looking at the data, there are qualifiers to take into account. Chu noted that the health insurance costs came from a 2013 Henry J. Kaiser Family Foundation report on average health insurance premiums in the individual market.
Recommended For You
"The Patient Protection and Affordable Care Act isn't accounted for in these numbers because the information is from 2013. However, we did notice that, overall, health insurance costs increase every year," he said.
Life insurance was the least expensive of all insurance types measured, with an average annual rate of $304, based on quotes for four profiles: 35-year-old men and women and 45-year-old men and women with a standard non-tobacco policy, $250,000 in coverage and a 20-year term. This number held true in all states except New York and Montana, which are subject to different state regulations.
"Yet, only 30 percent of people have life insurance," Chu noted. "Why is that? It might be because they aren't aware of the price."
See which 10 states are subject to the highest insurance costs:
10. Alaska: $6,413 (total average cost of insurance per year)
Health: $4,135
Life: $304
Homeowners: $942
Auto: $1,032
Median annual earnings: $51,317
Combined insurance cost as a percentage of earnings: 12.5%
9. Connecticut: $6,554 (total average cost of insurance per year)
Health: $3,496
Life: $304
Homeowners: $1,160
Auto: $1,594
Median annual earnings: $55,486
Combined insurance cost as a percentage of earnings: 11.8%
8. Florida: $6,602 (total average cost of insurance per year)
Health: $2,197
Life: $304
Homeowners: $2,804
Auto: $1,417
Median annual earnings: $38,621
Combined insurance cost as a percentage of earnings: 17.1%
7. Michigan: $6,648 (total average cost of insurance per year)
Health: $2,446
Life: $304
Homeowners: $802
Auto: $3,096
Median annual earnings: $44,567
Combined insurance cost as a percentage of earnings: 14.9%
6. Vermont: $6,713 (total average cost of insurance per year)
Health: $4,809
Life: $304
Homeowners: $782
Auto: $818
Median annual earnings: $42,819
Combined insurance cost as a percentage of earnings: 15.7%
5. Louisiana: $7,300 (total average cost of insurance per year)
Health: $2,990
Life: $304
Homeowners: $1,742
Auto: $2,264
Median annual earnings: $40,423
Combined insurance cost as a percentage of earnings: 18.1%
4. Rhode Island: $7,987 (total average cost of insurance per year)
Health: $3,937
Life: $304
Homeowners: $1,233
Auto: $2,513
Median annual earnings: $47,733
Combined insurance cost as a percentage of earnings: 16.7%
3. Massachusetts: $8,168 (total average cost of insurance per year)
Health: $5,477
Life: $304
Homeowners: $1,150
Auto: $1,237
Median annual earnings: $54,594
Combined insurance cost as a percentage of earnings: 15%
2. New York: $8,495 (total average cost of insurance per year)
Health: $5,142
Life: $289
Homeowners: $1,158
Auto: $1,906
Median annual earnings: $48,811
Combined insurance cost as a percentage of earnings: 17.4%
1. New Jersey: $8,705 (total average cost of insurance per year)
Health: $5,678
Life: $304
Homeowners: $981
Auto: $1,742
Median annual earnings: $54,980
Combined insurance cost as a percentage of earnings: 15.8%
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
