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.
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.
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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
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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
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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
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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
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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
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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
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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
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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
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
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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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