A new analysis from Insurify, an insurance comparison platform, finds that American drivers face substantial annual expenses related to vehicle ownership separate from monthly auto loan payments. The research identifies three primary cost categories: full-coverage auto insurance averaging $2,237 per year, gasoline at $2,126 annually, and maintenance or repairs totaling $1,488 per year. These figures are based on Insurify’s insurance data combined with estimates from the AAA and represent costs beyond the typical monthly payment obligations drivers assume when purchasing vehicles.
Monthly auto loan payments themselves present a significant ongoing expense, with new-car buyers averaging $765 in the second quarter, while used-car buyers averaged $542 per month according to credit reporting company Experian. Vehicle purchase prices have also risen substantially, with new cars averaging $49,855 in July and used vehicles averaging $27,028 during the same period. Both figures represent increases of approximately 29 to 34 percent compared to July 2019, outpacing the overall inflation rate of roughly 30 percent during that period.
Insurance costs have experienced particularly steep increases, jumping about 50 percent since July 2019, with accelerated growth occurring after mid-2022 when premiums rose more than 40 percent through mid-2024. Analysts attribute increases partly to inflation-driven vehicle repair expenses and the growing technological complexity of modern automobiles, which feature sophisticated electronics that are more expensive to repair. Credit-based insurance scoring and geographic location also influence premium rates significantly.
Gasoline prices have contributed to rising ownership costs, with regular unleaded averaging $4.29 per gallon as of Friday—56 percent higher than July 2019 levels. Crude oil prices have climbed amid geopolitical concerns, with West Texas Intermediate futures reaching above $102 per barrel before moderating to approximately $99, while diesel reached record highs of $6.05 per gallon. Maintenance and repair costs have also increased, with AAA estimates showing 2025 expenses at approximately 11.04 cents per mile for new vehicles, representing about 23.5 percent growth compared to 2019 figures.
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