What Is the Average Monthly Cost of Different Types of Insurance?

Insurance companies in the United States wrote more than $1 trillion in premiums in a recent year. When you hone in on the micro-level, it’s important that you as a policyholder understand how to manage your policy.

You can start by analyzing the insurance premium cost matters for your many different plans. If you can reduce the monthly cost, you’ll be in a better position to extract the most value from your policy and protect yourself in an emergency.

Keep reading to learn more about the monthly cost for the most common types of insurance plans.

Car Insurance

The average car insurance cost in the United States is approximately $1,700 per year. These policies protect you when you get into accidents and can also cover medical bills, lost income, and the cost to replace your automobile.

Here are a few of the different types of car insurance policies that you might seek:

  • Liability insurance coverage
  • Comprehensive coverage
  • Collision coverage

You’ll also pay more for your automobile insurance based on the value of the vehicle, and whether or not it’s new or used. Things like your age, driving record, and state will also dictate how much you pay in premiums.

Health Insurance

Health insurance isn’t the type of plan that you can do without. It covers you for your medical bills and any sorts of procedures that you might need to get. Because of this, you’ll need to manage the average health insurance cost so that you never have to go without it.

Health insurance premiums cost about $4,000 to $7,000 per year for the average 40-year-old, depending on their state of residence. Be sure to opt for open enrollment at the beginning of the year so that you can study the health insurance marketplace and find the best plan.

Homeowner’s Insurance

Make sure that you cover your home with a quality policy. In the United States, the average homeowner’s insurance premium is about $1,300 annually. This plan will cover you for things like weather damage, the contents and belongings of the home, and more.

You’ll pay different amounts based on the size of the property, its appraised value, and other matters.

Life Insurance

Finally, make sure that you’re protecting your family’s ability to afford living expenses in the event of your passing. This is where life insurance comes into play.

Life insurance policy premiums vary a lot, based on age, health, pre-existing conditions, and a host of other matters. A healthy person in their 30’s might pay about $400 for a term life insurance policy worth $500,000.

Consider the life insurance cost and figure out which companies offer the plans that you need. For a primer on how insurance works and getting the most out of it, we’ve got just the article you need – check it out!

Manage the Monthly Cost of Insurance

The points above will assist you when you’re trying to keep the monthly cost of insurance as reasonable as possible. These are fundamental life principles that will help you navigate the world with confidence, knowing that you are protected against emergencies and worst-case scenarios.

Begin with these points and lean on our articles related to insurance, home ownership, real estate, and so much more.

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