When insurance was first introduced in the United States, it was very likely that the typical family could pay just $1.95 per month for insurance. Today insurance is practically expected of every citizen and premiums are often out of control.
IN 2022, HOW MUCH SHOULD YOU PAY ON INSURANCE?
It’s completely up to you, but many experts agree that premiums will only get higher over time. The typical family should
expect to spend no less than $838 on insurance this year alone. A far cry from the measly $1.95 they would have paid years ago! This figure not only includes car insurance but life insurance as well – more on that later.
When it comes to cars, many people simply cannot afford insurance at today’s rates. The insurance industry has become so competitive that the insurance companies can afford to do whatever they want.
HOW MUCH SHOULD YOU PAY ON INSURANCE?
Well, first and foremost it all depends on your state’s insurance requirements. Most states mandate a minimum of $30,000 per person and $60,000 per accident for bodily injury liability, as well as $25,000 for property damage. If you live in one of the roughly 12% of states where insurance isn’t required (how lucky!), then you’ll definitely want to consider carrying at least some coverage; otherwise, you might be putting yourself and others at risk.
WHAT ABOUT LIFE INSURANCE?
Many experts say that roughly 8% of your income should go towards life insurance premiums every year. This insurance isn’t insurance in the traditional sense, but it’s still insurance. The idea is that you are funding a savings account for your family or any other designated beneficiary should something unfortunate happen to you before your insurance kicks in. Having insurance of this sort ensures that your loved ones will be able to carry on with their lives after they lose their primary breadwinner.
It’s important to understand that insurance isn’t just about covering yourself for anything and everything that might happen. A car accident, for example, could cost hundreds of thousands of dollars if not more – depending on who was at fault and how badly the damages were sustained by both vehicles. On the other hand, it might only require $25 worth of repairs if nothing went wrong.
In short, insurance is a gamble. You’re basically betting that nothing will happen to you during your insurance period. If something does happen, you collect the insurance money. However, if nothing happens then you’ve spent the number of insurance premiums for naught. In other words, insurance is more or less insurance for insurance’s sake – because everyone knows it’s better to be safe than sorry!
IN 2022, HOW MUCH SHOULD YOU PAY ON INSURANCE?
There are no concrete figures here since insurance rates vary so widely. The only thing we can say with certainty is that car insurance has gotten out of control and life insurance isn’t far behind. While the figures provided above are just estimations based on average incomes, they will vary widely from person to person.
In short, insurance is insurance – even if it’s for the insurance itself! If you’re still unclear on why insurance premiums are going up and up, then this is a good question to ask your insurance representative when you call in to ask how much should you be spending on insurance in 2022.
Schedule an appointment at (720) 806-6270.
