A new analysis from Insurify reveals that American drivers face substantial annual expenses related to vehicle ownership that extend beyond monthly auto loan payments. The research, compiled using insurance quote data and estimates from AAA, shows that drivers spend an average of $5,851 per year on three primary categories: full-coverage auto insurance at $2,237, gasoline at $2,126, and maintenance or repairs totaling $1,488. These costs occur alongside average monthly loan payments of $765 for new vehicles and $542 for used vehicles.
Vehicle prices themselves have climbed significantly in recent years. The average new car sold in July fetched $49,855, while used vehicles averaged $27,028, representing increases of approximately 34% and 29% respectively compared to July 2019. Insurance expenses have risen at an even steeper pace, jumping about 50% since July 2019, with much of this increase occurring after the pandemic period. Between mid-2022 and mid-2024 alone, insurance costs surged more than 40%. Analysts attribute the rising premiums partly to inflation-driven repair expenses and the increasing sophistication of vehicle electronics and safety systems, which raise repair costs when claims occur.
Gasoline prices have also contributed to elevated ownership costs. As of Friday, regular unleaded fuel averaged $4.29 per gallon nationally, down from a 2026 high of $4.56 in May but significantly above the July 2019 price of approximately $2.75. Crude oil prices have climbed recently amid geopolitical concerns affecting Middle East shipping routes. Maintenance and repair expenses similarly show substantial increases, with AAA’s 2025 estimate of 11.04 cents per mile for new vehicles representing a 23.5% rise from the 2019 estimate of 8.94 cents per mile.
Experts recommend that prospective car buyers carefully research insurance costs for their intended vehicle before completing a purchase, as premiums vary considerably based on the specific vehicle, geographic location, driving record, and in some states, credit-based insurance scores used by insurers to assess claim likelihood.
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