How Much Does the Average Person Pay for Insurance?

One bad car accident. One kitchen area raving over. One of the significant surgical treatment. If you’re not careful, a single point can hold back years of monetary progress.

That’s where insurance comes into play. Every great monetary plan has offense and cover. Insurance is your protection. It protects you from whatever life may throw at you.

Regardless of who you are, there are certain types of insurance you should have right now—three of which are auto insurance, landlord (or renter) insurance, and health and wellness insurance. And if you are married, have children or have someone in your life who depends on your income, you can also add a call life insurance policy to the list.

But it is clear that insurance can be obtained quite expensive. Just how expensive?

Let’s break down the costs behind each of these 4 types of insurance so you can determine how much space you need in your budget to protect yourself and your family.

scream! Bang! There are few points that are worse than the anxiety you get after a car accident. And it doesn’t take an adrenaline rush to be transformed by the stress and anxiety over the cost of repairing or replacing your car. Fortunately, auto insurance can soften the blow.

Do you have the right insurance coverage? You could save hundreds! Call an insurance professional today!

Across the country, the average US driver invests $1,548 annually in auto insurance—resulting in a loss of about $129 each month.1

Remember, however, that not all auto insurance costs are produced equal. If Bubba next door owns his car like crazy and gets into the fender dent (or 3) every year—and your driving record is clean—who do you think gets the bigger car insurance costs? you think it is. The insurance company will most likely charge Bubba more because he’s more risky to insure.

But your driving record is just a tip of the iceberg, as there could be many factors that could be the reason why your insurance premium is the way it is. Here are some of the most common points insurance providers make when trying to determine how much you should pay for auto insurance.

Dorothy was right. There is no place like home. And homeowners insurance is there to help protect your home and everything in it from the worst of life’s necessities.

According to the Nationwide Organization of Insurance Commissions, the average annual homeowners insurance premium is $1,192—or about $100 each month.3

For most homeowners, the advantage is that homeowners insurance is usually included in your home loan payment, so it doesn’t really seem like an extra expense at all. But remember, your home loan payments can’t be more than 25% of your take-home pay—and homeowner’s insurance is included in that calculation.

Just like realty, the biggest factor influencing how much you will spend on homeowners insurance is place, place, place. People in larger cities and mostly populated locations will most likely have higher prices compared to more hamlets. And if you happen to live in a certain area where natural disasters are more common—think tornadoes, hurricanes, and wildfires—you’re more likely to get higher insurance rates, too.

Nowadays, if you rent, you are not free. You will need sufficient renters insurance to replace your items if they are taken or damaged within a certain period of time. Without it, you need to change everything yourself a penny. And since renters insurance only costs about $15 per month, there’s no reason not to have it!

A trip to the emergency clinic becomes a surgical treatment of an emergency situation, which after that becomes a few days in a medical facility bed to recuperate before you are sent home. Costs start to pile up, and you’ll quickly find yourself in the thousands of dollars in clinical fees for swimming on your own. And without health and wellness insurance, you’re all set for the whole shebang.

How Much Does the Average Person Pay for Insurance?

The median annual premium for single coverage in 2019 was $7,188 per year, or $599 per month. But suppose you need a strategy that also provides protection for your spouse and children? The median premium for family coverage is $1,714 per month—that is, $20,576 annually.6 Gosh!

The good news is that if you are with most Americans under the age of 65 who obtained their health and wellness insurance through work, then your employer will probably cover most of your health and wellness insurance costs.7 For those who obtain health and wellness insurance at work, the average worker pays $103 each month for single coverage and $501 for family coverage—your employer pays the rest.8

Life insurance policies have one job: to help your family make up for lost income if you suddenly die. It really is “death insurance” if you consider it, but do you really want to buy it?

We recommend getting 15 or 20 years of call life insurance coverage that covers 10-12 times the amount of your annual gross income. So how much will it cost?

We recommend getting 15 or 20 years of call life insurance coverage that covers 10-12 times the amount of your annual gross income.

Well, if you’re a healthy, balanced 30-year-old who wants to get a 20-year calling life plan with $500,000 coverage, you’ll probably have to pay around $240 annually, or $20 per month.11

But the cost of your life insurance policy may vary based on several different factors, which include the size of the policy call, how old you are, your health and fitness background and smoking use, your gender, and the amount of coverage you want.

Our friends at Zander Insurance will help you get a free call life insurance policy quote so you can get the protection your family needs.

So how much will you pay for insurance? It depends on your circumstances. As your life changes, so will your insurance needs. It’s always a good idea to have an insurance check every few years or whenever you have a significant life event so you know you’re renewed. Let’s look at a few different examples of what your insurance costs might look like.

Satisfy Suzy. Suzy is alone, rents out a house in the city, obtains her health and wellness insurance through work, and has a fairly average driving record. How much does he spend on insurance every month? Let’s use some of our national averages to find out.

But what about John and Sarah? They are both thirty years old, have 2 children, and bought a suburban home in 2015. John obtained insurance through his job and signed up for family coverage which also provides coverage for Sarah and the children.

Both need life insurance policies, so they both get 20 years of call life insurance coverage, each with a $500,000 death benefit.
If you seem to be paying too much for insurance… you may be right! Many drivers and homeowners never look for a new car or homeowners insurance. But many of the people trying to find a better estimate save a lot of money on insurance every year.

We get it, shopping for insurance seems like a hassle. But our Insurance Authorized Local Service (ELP) company can do all the heavy lifting for you! They are independent insurance representatives who can browse estimates from various insurance providers so you can get the best price available. They can also help you ensure that you have all the insurance coverage you need.

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