Filed Under:Agent Broker, Personal Lines Business

Here are the 10 states where people pay the most for insurance coverage

Auto, homeowners, health, and life insurance are crucial to protect yourself and your family from financial disaster, but the total bill can be formidable. (Photo: Shutterstock)
Auto, homeowners, health, and life insurance are crucial to protect yourself and your family from financial disaster, but the total bill can be formidable. (Photo: Shutterstock)

No one plans to get sick, crash their car, or have a tornado destroy their home. So, to manage the risks in our lives and protect our financial well-being, we spend trillions of dollars each year on insurance.  

According to a recent NerdWallet study, the average American spends $5,261, or 12% of their yearly income, to insure their health, home, life and vehicle. On average in the United States, we spend $1,100 for auto insurance; $2,823 health insurance; $1,034 to insure our homes; and $304 for life insurance every year.

[Related: The 15 states where insurance costs the least [Ranked]

But, depending on where you live, these insurance costs can make up a larger or smaller percentage of your overall household expenses. NerdWallet broke down major insurance costs as a percentage of income to see how much Americans are really paying across the country.

Keep reading to learn the 10 states where residents pay the highest portion of their income to cover insurance premiums each year.

Mississippi road sign

(Shutterstock)

10. Mississippi - 14.8% of earnings | $5,222 per year for insurance

Auto: $1,043

Homeowners: $802

Health: $2,561

Life: $304

Median annual earnings: $35,340

Michigan welcome sign

(Shutterstock)

9. Michigan - $14.9% of earnings | $6,648 per year for insurance

Auto: $3,096

Homeowners: $802 

Health: $2,446

Life: $304

Median annual earnings: $44,567

Massachusetts welcome sign

(Shutterstock)

8. Massachusetts - 15.0% of earnings | $8,168 per year for insurance

Auto: $1,237

Homeowners: $1,150

Health: $5,477

Life: $304

Median annual earnings: $54,594

Oklahoma sign

(Shutterstock)

7. Oklahoma - 15.4% of earnings | $5,778 per year for insurance

Auto: $1,465

Homeowners: $1,501

Health: $2,508

Life: $304

Median annual earnings: $37,485

covered bridge in Vermont

(Shutterstock)

6. Vermont - 15.7% of earnings | $6,713 per year for insurance

Auto: $818

Homeowners: $782

Health: $4,809 

Life: $304

Median annual earnings: $42,819

New Jersey welcome signJer

5. New Jersey - 15.8% of earnings | $8,705 per year for insurance

Auto: $1,742

Homeowners: $981

Health: $5,678

Life: $304

Median annual earnings: $54,980

Rhode Island welcome sign

(Shutterstock)

4. Rhode Island - 16.7% of earnings | $7,987 per year for insurance

Auto: $2,513

Homeowners: $1,233

Health: $3,937

Life: $304

Median annual earnings: $47,733

Florida welcome sign

(Shutterstock)

3. Florida - 17.1% of earnings | $6,602 per year for insurance

Auto: $1,417

Homeowners: $2,084

Health: $2,797

Life: $304

Median annual earnings: $38,621

New York road sign

2. New York - 17.4% of earnings | $8,495 per year for insurance

Auto: $1,906

Homeowners: $1,158

Health: $5,142

Life: $289

Median annual earnings: $48,811

Louisiana welcome sign

(Shutterstock)

1. Louisiana - 18.1% of earnings | $7,300 per year in insurance

Auto: $2,264

Homeowners: $1,742

Health: $2,990

Life: $304

Median annual earnings: $40,423

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