Car ownership in the United States costs drivers an average of $5,851 per year when excluding monthly auto loan payments, according to research from Insurify, an insurance comparison platform. The analysis breaks down these expenses across three primary categories: full-coverage auto insurance accounts for $2,237 annually, gasoline costs average $2,126, and maintenance or repairs total $1,488. These figures are based on Insurify’s insurance-quote data combined with estimates from the American Automobile Association regarding fuel and maintenance expenses.
Auto insurance has experienced substantial growth in recent years, increasing approximately 50% since July 2019 according to Bureau of Labor Statistics data. A significant portion of this increase occurred after the pandemic period, with premiums rising more than 40% between mid-2022 and mid-2024. Industry analysts attribute these increases partly to inflation affecting vehicle repair costs and the growing complexity of modern automobiles. Newer vehicles equipped with sophisticated electronics and advanced systems command higher repair expenses compared to older models, which directly influences insurance claim costs and subsequent premium rates.
Gasoline prices have also risen considerably, currently averaging $4.29 per gallon for regular unleaded fuel as of Friday, representing a 56% increase from July 2019 levels. Recent price movements have been influenced by geopolitical tensions affecting global oil markets. Meanwhile, maintenance and repair costs have increased approximately 23.5% compared to 2019 levels, with the American Automobile Association estimating expenses of 11.04 cents per mile for new vehicles.
Industry experts recommend that prospective vehicle buyers research insurance costs before completing a purchase, as premium rates vary significantly based on vehicle specifications, geographic location, driving history, and credit-based insurance scores in certain states. Used-car buyers should also consider that older vehicles typically require more frequent repairs, potentially increasing overall ownership expenses beyond the initial purchase price.
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