How much does the average American family spend on insurance?
Average annual health insurance premiums in 2023 are $8,435 for single coverage and $23,968 for family coverage. These average premiums each increased 7% in 2023. The average family premium has increased 22% since 2018 and 47% since 2013.
BY Carly Plemons Published on January 24, 2024
In 2023, the average cost of health insurance for a family of four was approximately $23,968 per year. It's important to note that health insurance costs can vary significantly depending on factors such as location, plan type, and coverage options.
| Location | 2023 | Percent Change |
|---|---|---|
| Arizona | $410 | -2% |
| Arkansas | $416 | -2% |
| California | $432 | 8% |
| Colorado | $380 | 19% |
The average cost of full-coverage insurance is $2,008 per year or $167 per month, while minimum-liability coverage averages $627 per year or $52 per month. However, what you pay for auto insurance coverage varies based on your personal rating factors.
In 2010, California's $6,480 health care spending per capita was $572 (8.1%) below the US average. However, by 2020, its spending increased to $10,299; 1.1% above the US average.
What is the average cost of health insurance? The average cost of health insurance is $539 per month, with a maximum out-of-pocket (MOOP) limit of $6,115 per year.
Given that the average household income in the U.S. is $87,864, as of 2023, that means the average American family spends at least $4,393 in these expenses each year.
| 2022 | 2021 | |
|---|---|---|
| Family of two | $6,372 | $5,782 |
| Family of three | $7,189 | $6,597 |
| Family of four | $8,460 | $7,749 |
| Family of five or more | $8,068 | $7,400 |
According to eHealth's recent study of ACA plans, in 2023 the national average health insurance premium for an ACA plan is $456 for an individual and $1,152 for a family. This average cost does not include people who receive government subsides.
The average monthly expenses for a family of four range from $7,875 to $9,168 (depending on the ages of your kids). For single folks, the average monthly expenses are $4,337. For married couples with no kids, monthly expenses are $7,111.
Who normally has the cheapest car insurance?
The cheapest car insurance rate is $38 a month from Geico according to our research team's cost analysis of national average prices for minimum coverage. The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.
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.
According to our data, the Dodge Charger is the most expensive car to insure, costing an average of $354 per month or $4,242 per year for full-coverage car insurance.
Since people age 65 and over, on average, spend more on healthcare than any other age group, growth in the number of older Americans is expected to increase total healthcare costs over time.
By the time you reach 65 years old, average healthcare costs are $11.3K per person, per year in the United States. This is nearly triple the annual average cost when you're in your 20s and 30s. During your adult lifetime, average spending for women is nearly twice as high as for men.
The United States: the world's highest medical expenses
The United States has the most expensive healthcare system of any country. A medical consultation with a general practitioner costs, on average, $190 or around €170.
Is $200 a month expensive for health insurance in California? No, health insurance that costs $200 per month is a good deal in California. Silver plans typically cost $469 per month for a 21-year-old or $600 per month for a 40-year-old.
U.S. health care spending grew 4.1 percent in 2022, reaching $4.5 trillion or $13,493 per person.
About half of U.S. adults say it is difficult to afford health care costs, and one in four say they or a family member in their household had problems paying for health care in the past 12 months.
To make matters worse, hospitals often charge uninsured patients two to four times more than what health insurers and public programs typically pay for hospital services, KFF says. Without health insurance, you could be on the hook for thousands of dollars in medical bills.
Is it cheaper to pay out-of-pocket for health care?
We discovered some health care providers' cash or self-pay discounts are cheaper than what you'd pay using your insurance. People with high deductibles are finding it's better to pay their bills with cash or card than let billing departments send it to their insurance.
As of 2022, more than 100 million Americans carried debt related to obtaining health care, according to the Kaiser Family Foundation.
The answer is yes, almost 1 in 3 retirees today are spending between $2,000 and $3,999 per month, implying that $4,000 is a good monthly income for a retiree.
Using the BLS study of household earnings from 2021-2022, we found that an average household of 4 people spends approximately $97,000 per year. With a $150,000 salary, this would be sufficient to cover all your expenses and save $15,000 annually.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
