Unemployment insurance and liability insurance also varies depending on the type of business. State and local laws concerning the required amount of coverage will also affect averages of certain areas. Although average insurance costs for business owner vary by geographic area, business owner would be best served to look at industry averages to determine the best available rates.




Auto insurance rates, on the other hand, are determined by factors that may seem more ambiguous and arbitrary. A consumer might assume that a national average of insurance costs would provide a good starting point in estimating their own premium, but average insurance costs for automobile coverage varies wildly state to state.



As one might assume, states with higher population density tend to have higher average insurance costs while states with higher rural population usually have lower average insurance costs. Per-capita income of a specific state will also be a factor, as highly urban New York averages higher auto insurance costs than highly urban Ohio. Again, this average is based solely on liability coverage so the discrepancies come from outside risk factors that are calculated by insurance companies. Looking at urban averages, or average insurance costs for the particular city a consumer resides in, will be more helpful when selecting an appropriate policy and premium price.


Health and life insurance costs are much more difficult to average out because an individual or group policy often has little in common with other policies. Policies are set either by the specific selection of an individual based on affordability and coverage, or by an employer who attempts to get the best overall coverage for the most affordable price. The costs set by insurance carriers are much different for group policies than for individual policies. Obviously, age and general health are constant variables in the average costs of health insurance, but a standard coverage policy is difficult to determine in order to produce an average for a given area. Many of the same geographic risk factors that affect other types of insurance have an impact on health insurance as well. With health insurance premiums continuing to rise universally, and the federal government attempting to determine a usable definition of standard coverage, maybe average insurance costs will soon be a more calculable figure, but until then, consumers would be advised to look at their own coverage needs and the affordability of available premiums to determine the most appropriate policy.