Car ownership expenses extend significantly beyond monthly auto loan payments, according to research from insurance comparison site Insurify. The analysis found that drivers in the U.S. incur an average of $5,851 per year in additional costs, with full-coverage auto insurance representing the largest expense at $2,237 annually. Gasoline accounts for $2,126 of the yearly total, while maintenance and repairs comprise the remaining $1,488. These figures are based on Insurify’s insurance data combined with cost estimates from the American Automobile Association and other industry sources.
Vehicle prices themselves have risen substantially in recent years. The average price for a new car reached $49,855 in July, while used vehicles averaged $27,028, representing increases of 34% and 29% respectively compared to July 2019. Monthly loan payments for new vehicles averaged $765 in the second quarter, while used car payments averaged $542, according to credit reporting company Experian. Insurance costs have increased particularly sharply, climbing approximately 50% since July 2019, with most of the acceleration occurring between mid-2022 and mid-2024.
Experts attribute the insurance increases partly to rising repair costs driven by inflation and the growing complexity of vehicle electronics. Julia Taliesin, an economic analyst at Insurify, noted that sophisticated technology in newer vehicles makes them more expensive to repair than older models, thereby increasing insurance claims and premiums. Analysts recommend prospective car buyers research insurance costs before purchasing, as rates vary significantly based on vehicle specifics, location, driving record, and credit-based insurance scores.
Gasoline prices have also contributed to rising ownership costs. As of Friday, regular unleaded gasoline averaged $4.29 per gallon nationally, representing a 56% increase compared to July 2019 when prices were around $2.75. Oil prices have climbed amid geopolitical tensions affecting global supply. Maintenance and repair expenses have similarly increased, with AAA estimating 2025 costs at 11.04 cents per mile for new vehicles—approximately 23.5% higher than 2019 levels.
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