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Thread: what percentage of your income is spent on insurance?

  1. #1
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    what percentage of your income is spent on insurance?

    It's that time of year again when I need to consider insurance renewals. I read that the average American spends 12% of their income on home, auto, health and life insurance. I just tallied ours up (no life insurance) and it is about 11% of our net income. It seems like a lot of money either way as we have not filed any claims in over 20 years. I also have umbrella policy which is not expensive in itself but it requires that we have very high auto coverage. Just trying to figure out ways to cut costs this year and this seems like insurance is one of our biggest categories since we don't have a mortgage or car payment. I imagine everyone's will go up with all the natural disasters. I wonder what Mr Money Mustache would recommend or any other frugal wizard?

  2. #2
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    9%.

  3. #3
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    14.5%

  4. #4
    Senior Member iris lilies's Avatar
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    I don't know, because I don't know our actual income and how you would define it. We have investments that generate money and that money is put back into the investments. I don't measure that money.

    Using only our non- investment income stream, insurance accounts for 23% of that income.

    Annual insurance costs are:

    health insurance for two: $1,980
    real estate insurance for multiple parcels: $1.750
    vehicle insurance: $2,200
    umbrella liability insurance: $450

    these are off the top of DH's head, although I did verify the figure for health insurance. We no longer pay COBRA costs and can go to Transylvania on that money! Thank you Alan for the subsidies. I should have sent you a post card (but the selfie trend has pretty much killed the post card business.)

  5. #5
    Senior Member dmc's Avatar
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    Like iris I don't know. My actual income.

    health insurance is $18600
    real estate is $3000
    cars. Around $2000

    so $23,600 in after tax dollars.

  6. #6
    Senior Member dmc's Avatar
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    The above numbers are for two.

  7. #7
    Senior Member bae's Avatar
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    ~11%. And that includes *no* health insurance, because Alan is paying for ours. With health insurance, it'd be about 40% total.

  8. #8
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    Health, auto, home = 5.7% of total annual gross income.

  9. #9
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    prob. about 6-7% due mainly to health insurance for two.

  10. #10
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    Interesting to see the figures; wow... dmc... $18600 for health insurance?
    I guess I shouldn't complain as I am paying $3100 a yr to add DH to my employee paid health insurance. Haven't used it yet though so don't know how it will play out if a chronic illness or emergency arises.

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