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The 10 states where insurance costs the most

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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. 

ak

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% 

cy

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%

florida

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%

mi

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% 

vermont

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%

louisiana

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%

ri

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%

ma

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%

nyc

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%

nj

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%

See also:

Meet 4 leaders that are transforming the insurance industry

9 more things to know about whole life insurance

10 best states to retire rich