A new analysis from Insurify reveals that vehicle ownership in the United States carries substantial costs beyond monthly auto loan payments. The research indicates that drivers spend an average of $5,851 per year on car-related expenses, with insurance representing the largest component at $2,237 annually. Gasoline accounts for an additional $2,126 in yearly spending, while maintenance and repairs comprise the remaining $1,488 of the total.
The monthly auto loan payments themselves add significantly to overall costs. New car buyers face average monthly payments of $765 in the second quarter, while used car purchasers average $542 monthly. New vehicles command an average price of $49,855, compared to $27,028 for used cars, figures that have increased substantially compared to similar periods in 2019.
Insurance costs have experienced dramatic growth, jumping approximately 50% since July 2019. This increase accelerated during the post-pandemic period, with premiums rising more than 40% between mid-2022 and mid-2024. Analysts attribute much of this increase to inflation-driven repair costs and the technological complexity of newer vehicles. Advanced electronics and sophisticated systems in modern cars make repairs more expensive, directly translating to higher insurance claims and premiums.
Gasoline prices have also contributed to rising ownership costs, currently averaging $4.29 per gallon and remaining 56% higher than levels from July 2019. Recent crude oil price increases, driven by geopolitical concerns about Middle Eastern shipping routes, have pushed prices upward in recent weeks. Maintenance and repair expenses have similarly increased, with AAA estimating per-mile costs at 11.04 cents for new vehicles in 2025, representing approximately 23.5% growth since 2019. Experts recommend that prospective vehicle buyers research insurance costs before making purchase decisions, as rates vary substantially based on vehicle specifications, location, and individual driving history.
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