Average Insurance Costs For Auto, Home, Renters and Health

By Doresa Banning on April 11th, 2010

When shopping for any type of insurance policy, finding the "average cost" may be the first thing that comes to mind. While such a number may be useful in some respects, especially if you are comparing rates, it is not the most accurate method of gauging an appropriate price.

The average cost of insurance reflects what all consumers actually spend on insurance, meaning those with the cheapest rates are pooled with those with the most expensive premiums, and those who buy minimum coverage are included with those who buy extensive protection.

If you decide to compare the rates you've gathered with average costs, it may be more useful to look at the average cost within your state. Comparing your rates with the nationwide average, or with the average price from a different state, could be misleading due to varying risk factors. Insurance rates are determined by looking at several risk factors, which include (but are not limited to) where you live, your age and your claims record. Factors affecting rates for group health insurance policies include the health and ages of members within the group.


Car Insurance: Expenditure by State

According to data from the National Association of Insurance Commissioners (NAIC), the average cost of car insurance in the U.S. was $795 in 2007. When compared to average costs by state, however, it's clear that location can make a big difference. For example:
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  • New York: $1,047
  • Florida: $1,043
  • Pennsylvania: $820
  • Texas: $808
  • California: $800

The average car insurance price assumes that all insured vehicles include liability coverage, the minimum auto insurance requirement in most states, but does not reflect the total of liability as well as collision and comprehensive coverage -- because not all auto policies include all three coverage types.

The NAIC reports that states with greater premiums tend to be highly urban -- with higher wages and price levels -- and possess a higher traffic density. Other factors that affect the cost of insurance include: auto insurance laws, labor costs for repairs, car-theft rates and liability coverage requirements.

These are the averages, get your personalized auto rate by clicking here: auto insurance quotes.


Home Insurance: Average Premiums

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The cost of a home insurance policy is based on several factors, including the amount of insurance you purchase, the perils covered by your policy, the type of property you insure, and the limits and deductibles you choose as a policyholder.

Homeowners insurance rates, which are influenced by local construction costs, vary widely around the country. Your degree of exposure to natural disasters, such as tornadoes and forest fires, also affect your premium price.

According to the NAIC, the national average for home insurance coverage for a single family home, was $822 in 2007. As with auto insurance, average home insurance prices vary widely from state to state:

  • Florida: $1,534
  • Texas: $1,448
  • New York: $936
  • California:$925
  • Pennsylvania: $689

The mean insurance rate for home insurance represented the most commonly purchased coverage, the HO-3 policy, which provides coverage for buildings, personal property (contents) and liability.

Looking for a customized rate? Click here: home insurance quotes.


Renters Insurance

If you rent, you should consider purchasing renters insurance. The average premium price differences are less dramatic in state-to-state comparisons for renters insurance. For instance, average annual premiums for renters insurance in 2007 include:

  • California:$231
  • Texas: $226
  • New York: $218
  • Florida: $202
  • Pennsylvania: $144



Group Health Insurance: For Individuals and Families

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According to the Kaiser Family Foundation's Survey of Employer-Sponsored Health Benefits for 1999 to 2009, the average annual cost of health insurance coverage, as part of a group plan, is:

  • Individual: $4,824
  • Family: $13,375

The survey included 3,188 randomly selected, public and private companies having three or more employees. The average cost for family coverage reflected a 5% increase from 2008 to 2009; however, the individual premium price did not indicate a significant jump. Factors such as the the group's location, industry, and health and ages of the group's members affect group health insurance premiums.

Want to see your personalized health insurance rate? Click here: health insurance quotes.

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