Elevated vehicle prices, sharp increases in full-coverage insurance rates and other factors have combined to create a compounding financial squeeze
Seattle—While public attention frequently focuses on volatile gas prices and heightened economic uncertainty, latest data from a new report shows that fixed financial pressure of owning a car comes from two recurring expenses: financing and insurance.
By grouping these categories, the analysis by doxo shows that the average American household with automotive obligations now pays a combined median of $595 per month ($7,140 annually) toward auto loans and auto insurance.
In total, these two categories represent a $754 billion portion of the broader $5.03 trillion U.S. bill pay economy. Elevated vehicle prices and compounding interest rates on the financing side, paired with a sharp, multi-year increase in full-coverage insurance rates, have combined to create a compounding financial squeeze.
Key Report Findings
Cost of Car Ownership in the U.S.
- Americans spend a total of $754 billion a year on auto loans and auto insurance.
- The median annual cost per household is $7,140 a year for both auto loans and auto insurance.
Auto Loans Market Size and Household Spending
- Total Auto Loans Market Size: $492 billion per year
- Median Monthly/Annual Bill Payment: $485 per month; $5,820 per year
- Percent of Households: 62% of U.S. households pay auto loans
- Percent of Household Bill Pay Expense: Auto loan bills amount to 10% of consumers’ household bill pay costs per year
Auto Insurance Market Size and Household Spending
- Total Auto Insurance Market Size: $261 billion
- Median Monthly/Annual Bill Payment: $110 per month; $1,320 per year
- Percent of Households: 80% of U.S. households pay auto insurance
- Percent of Household Bill Pay Expense: Auto insurance bills amount to 5% of consumers’ household bill pay costs per year
10 Most Expensive States for Total Cost of Car Ownership
| State | Median Monthly Combined Auto Bill | Median Monthly Auto Insurance Bill | Median Monthly Auto Loan Bill |
| New Hampshire | $713 | $235 | $478 |
| Massachusetts | $671 | $171 | $500 |
| Texas | $669 | $131 | $538 |
| California | $668 | $130 | $538 |
| Florida | $666 | $166 | $500 |
| Delaware | $662 | $162 | $500 |
| Nevada | $655 | $111 | $545 |
| Utah | $655 | $146 | $508 |
| New Jersey | $654 | $154 | $500 |
| Maryland | $644 | $144 | $500 |
Top 10 Most Expensive Largest Cities to Own a Car
| City | Median Monthly Combined Auto Bill | Median Monthly Auto Insurance Bill | Median Monthly Auto Loan Bill |
| San Jose, CA | $918 | $337 | $582 |
| Birmingham, AL | $899 | $379 | $520 |
| New York, NY | $886 | $324 | $561 |
| Dallas, TX | $798 | $208 | $590 |
| Jacksonville, FL | $783 | $283 | $500 |
| Austin, TX | $782 | $195 | $586 |
| Baltimore, MD | $752 | $260 | $493 |
| San Antonio, TX | $746 | $146 | $600 |
| Fort Worth, TX | $740 | $187 | $553 |
| Seattle, WA | $737 | $201 | $536 |
Comments are closed.