A recent analysis highlights that car buyers often focus solely on the sticker price and monthly finance payments, but these figures represent only a small portion of the true cost of driving.

According to the latest research from insurance comparison platform Insurify, American vehicle owners spend an average of $5,851 each year on car ownership expenses, over and above their auto loan payments. The largest share of this expense comes from full coverage insurance, which averages $2,237 annually, while fuel costs account for roughly $2,126 per year. The remaining $1,488 is dedicated to vehicle maintenance and repairs. This calculation is based on data from the Insurify insurance quote database combined with fuel and repair cost estimates supplied by the American Automobile Association (AAA).

To put this in perspective, credit bureau Experian reports that the average monthly payment on a new car loan is $730, while a used car loan averages $542 per month. Furthermore, vehicle pricing research firm Kelley Blue Book tracks the average transaction price for new cars, and market research company Cox Automotive monitors the average listing price for used vehicles. Together, these figures show that new car prices have surged 34% and used car prices have climbed 29% since July 2019. For context, overall U.S. inflation over that same period was just 20%.

Car insurance premiums have spiked approximately 50% since July 2019, according to data from the U.S. Bureau of Labor Statistics. Notably, the bulk of this increase occurred after the pandemic, with premiums jumping more than 40% between mid-2022 and mid-2024. Julia Taliesin, an economic analyst at Insurify, attributes this surge to multiple factors. "Higher vehicle repair costs driven by inflation play a significant role," she explains. "Modern cars are also equipped with more sophisticated electronic components and systems, making them far costlier to repair than the simpler models of years past. These higher repair expenses lead to larger insurance claims, which in turn compel insurers to raise their premiums."

Experts urge consumers to thoroughly research insurance quotes for any prospective vehicle before finalizing a purchase. "Whether you are buying a new or used car, never commit to a deal without first checking the insurance costs," warns Karl Brauer, senior analyst at used car research site iSeeCars. Insurance premiums can vary dramatically based not only on the vehicle model but also on the owner's location and individual driving history. Some states permit insurers to use an insurance credit score—a metric that predicts the likelihood of a policyholder filing a claim—which can significantly affect pricing. The lower the score, the higher the premium a driver will face.

Fuel prices have added another layer of financial strain for drivers, having climbed roughly 55-56% since 2019. According to AAA data, the national average price of regular unleaded gasoline reached $4.29 per gallon last Friday. While this is below the 2026 high of $4.56 recorded in May and well off the peak of $5.01 seen in mid-2022, it still represents a substantial increase from the $2.75 per gallon average in July 2019, as tracked by fuel price platform GasBuddy. Recent concerns over Middle East conflicts disrupting oil tanker shipping have pushed crude oil prices—the primary ingredient in gasoline—steadily higher. U.S. West Texas Intermediate (WTI) crude futures briefly broke above $102 per barrel last week before settling at around $99 on Friday, while the international benchmark Brent crude hovered near $104 per barrel. These figures contrast sharply with February 28 prices of $67 and $72 per barrel, respectively, before the conflict escalated. Additionally, AAA data shows diesel prices hit an all-time high of $6.05 per gallon last Friday.

Maintenance and repair costs are another variable that shifts considerably depending on a vehicle's age and model. The AAA's 2025 Your Driving Costs report estimates that the average maintenance and repair cost for a new vehicle is 11.04 cents per mile. At the typical annual driving distance of 15,000 miles, this translates to roughly $1,656 per year in upkeep expenses. This marks an increase of approximately 23.5% from the 8.94 cents per mile recorded in 2019, when the annual cost for the same mileage stood at $1,341. Experts caution that older vehicles tend to have a higher frequency of mechanical failures, a key risk factor that used car buyers should carefully consider when making their purchasing decisions.