Average Annual Car Ownership Costs Reach $5,851 Beyond Loan Payments
New research from Insurify reveals that U.S. drivers spend an average of $5,851 annually on car ownership costs beyond their monthly auto loan payments. This includes full-coverage insurance at $2,237 per year, gasoline expenses totaling $2,126, and maintenance or repair costs amounting to $1,488. These figures are based on data from Insurify's insurance quotes as well as AAA estimates for gas and maintenance. The analysis highlights significant increases in key cost components since 2019: auto insurance has risen by about 50%, gasoline prices have increased by 56%, and repair costs were up approximately 23.5% over six years, according to the Bureau of Labor Statistics (BLS) and AAA data. The average monthly loan payment for new cars in Q2 was $765, while used car payments averaged $542. The rising cost of insurance is attributed partly to inflation-driven repair costs and advanced vehicle technology that increases claim expenses. Experts advise buyers to consider these ongoing ownership costs before purchasing a vehicle.
Topics: Auto Insurance Car Ownership Costs Gas Prices Inflation