Car Ownership Now Costs an Average of 5,851 Dollars a Year Before Loan Payments
A new analysis from Insurify found that American drivers spend an average of $5,851 per year on car insurance, gasoline, and maintenance, not counting monthly loan payments. Insurance alone averages $2,237 annually, up 50 percent since 2019. The average new car loan payment reached $765 per month in the second quarter of 2026.
American drivers are spending an average of $5,851 per year on core car ownership costs, not counting their monthly loan payments, according to a new analysis from Insurify published in September 2026.
The figure covers three main expenses: full-coverage insurance at $2,237 per year, gasoline at $2,126 per year, and maintenance and repairs at $1,488 per year. These are costs drivers face regardless of whether they own their vehicle outright or are still making payments.
When loan payments are included, the total cost of owning a new vehicle rises sharply. The average monthly payment for a new car reached $765 in the second quarter of 2026, and $542 for used cars.
A separate analysis from AAA puts the comprehensive annual cost of owning a new vehicle, including depreciation, at $11,577 per year, or about $965 per month.
Insurance costs have risen the most sharply. Premiums are up 50 percent since 2019, driven in part by the increasing complexity and repair costs of modern vehicles packed with sensors, cameras, and advanced driver assistance systems.
Fuel costs have moderated compared to recent highs, dropping nearly 21 percent from their peak. Maintenance costs remain steady, though electric vehicle owners pay less for routine service than drivers of gas-powered cars.
Financial advisors say the full cost of car ownership is often underestimated when people budget for a vehicle. They recommend factoring in insurance, fuel, and maintenance before committing to a purchase or lease.
