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.
Cost of Car Ownership in the U.S.
Auto Loans Market Size and Household Spending
Auto Insurance Market Size and Household Spending
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 |