Survey: R.I. residents pay highest earning percentage on insurance

PROVIDENCE – A new nationwide study shows Rhode Island residents paying the highest percentage of their earnings on insurance out of all New England state.
The study, conducted by NerdWallet.com, focuses on how much residents of each state spend on home, health, auto and life insurance. The study shows Rhode Island residents paying an average 16.7 percent of the state’s median annual earnings on combined insurance costs, which is the most of any New England state and fourth most in the country.
Louisiana ranked No. 1, paying 18.1 percent of the state’s median annual earnings on combined insurance costs, before New York – 17.4 percent – and Florida – 17.1 percent – ranked No. 2 and No. 3, respectively.
Vermont ranked No. 6 in the report, paying 15.7 percent and Massachusetts ranked No. 8, paying 15 percent. Maryland residents pay the lowest percentage of the state’s median annual earnings at 7.7 percent, according to the report.
Rhode Island residents on average pay $1,233 on homeowners insurance, $3,937 on health insurance, $304 on life insurance and $2,513 on auto insurance, totaling $7,987 per year.
Northeast policyholders in general pay more, according to the report, as four of the five most expensive states for the combined cost of insurance are in the northeast.
The report used 2012 state’s average HO-3 homeowner’s insurance policy premium from the National Association of Insurance Commissioners for its homeowner’s insurance calculations. It used 2013 health insurance premiums per person on the individual market from the Henry J. Kaiser Family Foundation for its health insurance analysis.
The report looked at data collected by Hallett Financial on life insurance quotes using four hypothetical profiles for its life insurance and selected 10 ZIP codes in each state, running eight hypothetical profiles for its car insurance, according to the report.

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