Here's an often overlooked fact about insurance: Its cost varies substantially based on where you live. With this in mind, a new study looks at the cumulative costs for life, health, auto and home coverage across all 50 states.
"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. "The Patient Protection and Affordable Care Act (PPACA) 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."
Keep reading to 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
