Cost of Car Ownership in the US - Auto Category reports

Cost of Car Ownership in the U.S.: The Average American Household Spends $5435 a Year on Auto Loans and Auto Insurance Combined

 As both gas and car prices spike, doxoINSIGHTS reveals that on average, Americans spend a total of $698 billion a year on auto loans and insurance combined; breaks down the most expensive states and metro areas to own a car in the U.S.

SEATTLE, WA – doxo, the innovative web and mobile bill pay service, today released two new doxoINSIGHTS reports, revealing that Americans as a whole spend $698 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 30,000+ (97%) U.S. zip codes. The U.S. Auto Loans Market Size and Household Spending Report and the U.S. Auto Insurance Market Size and Household Spending Report found that U.S. Households with Auto Loan and Auto Insurance bills spend $598 per month, or $7176 per year – or $5435 when averaging across all U.S. households.* The reports also break out the U.S. household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, largest metro areas and cities based on population.

These findings come as crude oil hits its highest price in three years, and as car prices are expected to be high and inventories to be limited through the rest of the year. As price comparison in the automotive market proves to be more important than ever, doxoINSIGHTS’ location-specific breakdowns can empower consumers by showing them how much, on average, they can expect to pay for an automobile in comparison to their neighbors.

“The U.S. Bill Pay economy is massive and complex. By leveraging our proprietary database of consumer household payments to create these U.S. Auto Loans and Auto Insurance Market Size and Household Spending Reports, we strive to make the cost of car ownership much more transparent and understandable for consumers, billers, and financial service providers alike,” said Jim Kreyenhagen, Vice President Marketing and Consumer Service, doxo. “doxoINSIGHTS reports, alongside doxo’s simple, secure, all-in-one bill pay service, comprise vital parts of our mission to empower consumers to make better decisions and gain greater control of their financial outcomes.”

U.S. Auto Loans and Auto Insurance Market Size and Household Spending Reports

doxo’s bill pay service enables all-in-one bill pay to more than 100,000 providers across the country in 45 different service categories. By incorporating tens of millions of bill payments across 30,000+ U.S. zip codes and all U.S. income and regional demographic segments, the U.S. Auto Loans and Auto Insurance Market Size and Household Spending Reports represent a true and direct representation of what Americans actually pay for their auto related bills. Each report provides a comprehensive look into the auto loan and auto insurance bill pay market, with a deep dive into category market size and average spend at the national, state, and regional level. Key findings include:

Cost of Car Ownership in the U.S.

  • Americans spend a total of $698 billion dollars a year on Auto Loans and Auto Insurance
  • The average annual cost per household is $5435 a year for both Auto Loans and Auto Insurance*

Auto Loans Market Size and Household Spending Snapshot

  • Total Market Size: $463 billion spent per year
  • Average Monthly/Annual Cost: $412 spent per month; $4944 spent per year
  • Percent of Households: 73% of U.S. households pay Auto Loans
  • Average Annual Cost per U.S. Household: $3,605 per year*
  • Percent of Annual Income: Auto Loan bills amount to 8% of consumers’ income per year

Auto Insurance Market Size and Household Spending Snapshot

  • Total Market Size: $235 billion spent per year
  • Average Monthly/Annual Cost: $186 spent per month; $2232 spent per year
  • Percent of Households: 82% of U.S. households pay Auto Insurance
  • Average Annual Cost per U.S. Household: $1830 per year*
  • Percent of Annual Income: Auto Insurance bills amount to 3% of consumers’ income per year

 Top 5 Most Expensive States to Own a Car

State Monthly Auto Insurance Spend Monthly Auto Loan Spend Monthly Total
Wyoming $335 $559 $894
Alaska $262 $485 $747
North Dakota $222 $478 $700
Hawaii $246 $443 $689
Massachusetts $206 $459 $665

Top 5 Most Expensive U.S. Metro Areas to Own a Car

Metro Area Monthly Auto Insurance Spend Monthly Auto Loan Spend Monthly Total
New York $262 $441 $703
Miami $245 $429 $674
Denver $191 $464 $655
Boston $211 $440 $651
Seattle $209 $429 $638

For more information, or to view both reports, visit www.doxo.com/insights/.

*Average Monthly Bill x % of Households with Bill x 12 months per year = Average Annual Cost per U.S. Household.

 About doxoINSIGHTS

doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo’s unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 5 million paying consumers across over 97% of U.S. zip codes. doxo’s payment network covers over 100,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports – uncovering key trends for household financial health and bill payment behavior.

About doxo

doxo provides simple, secure all-in-one bill payment to any biller, with any payment method, on any device. A doxoPLUS subscription adds free bank payments and five essential financial protections that boost household financial health. Through these services, doxo currently serves over five million paying users who can make payments to over 100,000 local and national businesses, making doxo the largest bill pay directory in the nation. Billers on the network get paid directly, fast and free – and consumers have complete bill pay independence over when and how they pay their bills. doxo expanded its user base by more than 70 percent in the past year and is expanding its team to further accelerate growth and change the bill pay landscape to focus on the customer. doxo investors include MDV, Sigma Partners, and Bezos Expeditions. doxo is based in Seattle, WA. For more information visit www.doxo.com.

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