Today, doxoINSIGHTS released two new doxoINSIGHTS reports on the cost of car ownership in the US for 2022. The reports reveal that Americans as a whole spend $743 billion annually on car loans and car insurance combined. The Auto Insurance report, in particular, breaks down the $250 billion market for auto insurance in the U.S.
These reports come an opportune time. Interest rates on auto loans are at a near-peak high over the last eight years, with supply chain issues and limited inventory pushing both new and used car prices up. Simultaneously, inflation is impacting not only auto purchasers, but insurers who are passing the more expensive cost of vehicle repair and replacement on to consumers. doxoINSIGHTS’ price rankings show consumers how much they can expect to pay for cars compared to their neighbors.
Auto Insurance Spending Snapshot
- Total Market Size: $250 billion spent per year
- Average Monthly/Annual Cost: $196 spent per month; $2,352 spent per year
- Percent of Households: 82% of U.S. households pay Auto Insurance
- Average Annual Cost per U.S. Household: $1,929 per year*
- Percent of Annual Income: Auto Insurance bills amount to 4% of consumers’ income per year
Read the full report below, and refer to our Auto Loans report for a supplementary look at how much U.S. residents pay in monthly car loans as well.
*Average Monthly Bill x % of Households with Bill x 12 months per year = Average Annual Cost per U.S. Household.