11/06/2025

Cost of car ownership escalates to $6,900 annually

Source: aftermarket MATTERS

Two new reports released this week show that Americans as a whole spend $717 billion annually on auto loans and auto insurance combined. A statistical analysis of actual household payments toward auto loans and auto insurance was used to size the market and amount spent per household across 97% of U.S. zip codes.

The “2025 U.S. Auto Loan Market Size and Household Spending Report” and the “2025 U.S. Auto Insurance Market Size and Household Spending Report” found that U.S. households with auto loan and auto insurance bills spend a median of $575 per month, or $6,900 per year.

The reports break out the household spending market size; percentage of households that pay each bill; and median monthly and annual bill pay costs by state, as well as the 50 largest U.S. cities (based on the number of households), and those cities with 40,000 or more residents.

Auto Loans Market Size and Household Spending

• Total Auto Loans Market Size: $478 billion per year
• Median Monthly/Annual Bill Payment: $470 per month; $5,640 per year
• Percent of Households: 61% of U.S. households pay auto loans
• Percent of Household Bill Pay Expense: Auto loan bills amount to 9% of consumers’ household bill pay costs per year

Auto Insurance Market Size and Household Spending

• Total Auto Insurance Market Size: $239 billion
• Median Monthly/Annual Bill Payment: $105 per month; $1,260 per year
• Percent of Households: 80% of U.S. households pay Auto Insurance
• Percent of Household Bill Pay Expense: Auto Insurance bills amount to 2% of consumers’ household bill pay costs per year

The cost of car ownership continues to climb. Auto loan debt has reached $1.66 trillion, up $13 billion according to the latest “Quarterly Report on Household Debt and Credit.” Elevated interest rates, persistent inflation, and higher vehicle prices are driving expenses higher, while full-coverage auto insurance premiums have risen 12% in 2025 compared to last year.

Top 10 Most Expensive States to Own a Car

Top 10 Most Expensive Largest U.S. Cities to Own a Car