How much does the average person spend on home insurance?
Based on data from Quadrant Information Services, the average annual cost of homeowners insurance in the U.S. is $2,511.25. Hawaii residents see the lowest average homeowners insurance rates at $782 annually. Oklahoma homes carry the most expensive policies, with an average annual cost of $6,325.
Based on rate data provided by Quadrant Information Services, the national average homeowners insurance cost is $2,151 per year — about $179 per month — for a policy with $300,000 in dwelling coverage. Insurance is not one size fits all.
| Rank | State | Total insurance annual cost |
|---|---|---|
| 4 | California | $5,422 |
| 5 | New York | $5,127 |
| 5 | Utah | $4,818 |
| 5 | Pennsylvania | $4,305 |
The average national monthly health insurance cost for one person on an Affordable Care Act (ACA) plan without premium tax credits in 2024 is $477.
Why homeowners insurance rates are rising. Several factors are making homeowners insurance more expensive: The increase in the number and severity of hurricanes, floods, tornadoes and other harsh weather has led to a spike in claims in many parts of the country.
On average, homeowners will have to pay around $4,140 annually, or $345 monthly, for Homeowners Insurance on a $600,000 home. Your premium will be based on, firstly, the coverage total and, secondly, your policy structure.
Hawaii. Hawaii boasts the nation's cheapest home insurance, with an average premium of just $382 per year for $250,000 in dwelling coverage. That means Hawaii's average price for home insurance comes in at $1,046 less than the national average.
Is $200 a lot for car insurance? If paid on a monthly basis, $200 is a lot to pay for car insurance. The national average costs for car insurance are $52 per month for minimum-liability coverage and $167 per month for a full-coverage auto insurance policy.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
On average, 25-year-olds pay about $2,336 per year or $197 per month for full coverage car insurance policies. This is about 16% more than the national average for 35-year-old drivers, which is $2,008 per year.
How much should you spend on insurance per month?
| Average Insurance Cost Per Month for Health Insurance in 2024 | |
|---|---|
| State | Cost |
| California | $468 |
| Colorado | $451 |
| Connecticut | $661 |
John Millen from MillenGroup suggests, “A good rule of thumb is that you should spend about 10% of your annual income on the cost of single coverage (annual).
Life Insurance Rule of Thumb
With this method, you multiply your annual income by 10 to find your coverage amount. By multiplying a provider's income by 10, a family can theoretically continue to pay typical expenses and maintain the same standard of living for the 10 years following the provider's death.
Travelers is the most expensive homeowners insurance company for $200,000, $350,000, $500,000 and $750,000 dwelling coverage amounts. Rates vary significantly among companies because they each have their own formulas for pricing. That means it's vital to comparison shop homeowners insurance quotes when buying a policy.
Home insurance protects your house
So if a huge unexpected disaster takes place, like a fire or windstorm, you'll save hundreds of thousands (or millions depending on your house size) on out-of-pocket expenses.
The insurance industry references the Consumer Price Index to measure inflation and adjusts rates accordingly. It's one big reason why property owners find that their home insurance keeps going up year after year, even if nothing's changed on their property.
The cost of insuring a $500,000 home
The average cost of homeowners insurance for a $500,000 home is $3,878, more than double that of the average of all homes in the U.S. More expensive homes typically cost more to insure since it is more expensive to rebuild or repair the home.
But in general, the cost of private mortgage insurance, or PMI, is about 0.5 to 1.5% of the loan amount per year. This annual premium is broken into monthly installments, which are added to your monthly mortgage payment. So a $300,000 loan would cost around $1,500 to $4,500 annually — or $125 to $375 per month.
| State | $200,000 with $1,000 deductible and $300,000 liability |
|---|---|
| California | $1,027 |
| Colorado | $2,645 |
| Connecticut | $1,732 |
| Washington, D.C. | $893 |
Top 10 home insurance companies. State Farm is the largest provider of homeowners insurance in the U.S., with $19.7 billion in direct premiums written in 2020. That figure is double the amount of the second-largest insurer, Allstate.
Will homeowners insurance go down in 2024?
How much will home insurance rates increase? The firm's Home Insurance Projection Report foresees a 6% rise in annual premiums in 2024. The increase will put the national average at $2,522 at the end of the year.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Progressive | $635 | $53 |
| State Farm | $1,010 | $84 |
| Nationwide | $1,040 | $87 |
| Travelers | $1,255 | $105 |
Leif Olson, Car Insurance Writer
Yes, $300 a month for car insurance is expensive. The average cost of car insurance ranges from about $60 per month for state-minimum coverage to $166 per month for full coverage, though individual car insurance rates vary based on factors such as driving record, age and location.
By going with a 6-month policy, you can often clear these penalties and enjoy lower rates faster. It's a smart way to put more money back in your pocket! Other reasons your auto insurance rates might be revised downward: Celebrating a birthday (young drivers face expensive premiums)
Our cost estimates show that 35-year-old married drivers with good credit and clean driving records pay an average of $144 per month for car insurance. Paying around $100 per month for quality auto coverage is a good deal.
