doxo Report Reveals Cost of Car Ownership, Households Spending $6,900 Annually
doxoINSIGHTS 2025 Auto Reports uncover the most and least costly states and cities for car ownership, with Americans spending a combined $717 billion annually on auto loans and insurance.
Two new reports released today from doxo reveal 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.¹
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 40k or more residents.
Key findings from doxoINSIGHTS 2025 Auto Reports:
Cost of Car Ownership in the U.S.
- Americans spend a total of $717 billion dollars a year on Auto Loans and Auto Insurance
- The median annual cost per household is $6,900 a year for both Auto Loans and Auto Insurance¹
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
| State | Monthly Auto Insurance Median Bill | Monthly Auto Loan Median Bill | Monthly Total² |
| Nevada | $123 | $559 | $682 |
| New Jersey | $150 | $500 | $650 |
| Maryland | $150 | $500 | $650 |
| Massachusetts | $167 | $473 | $640 |
| Hawaii | $118 | $520 | $638 |
| Florida | $138 | $500 | $637 |
| California | $122 | $515 | $625 |
| Georgia | $125 | $500 | $625 |
| Arizona | $125 | $500 | $624 |
| Tennessee | $124 | $500 | $616 |
Top 10 Most Expensive Largest Cities to Own a Car
| City | Monthly Auto Insurance Median Bill | Monthly Auto Loan Median Bill | Monthly Total² |
| New York, NY | $218 | $571 | $789 |
| Tucson, AZ | $110 | $646 | $756 |
| Birmingham, AL | $287 | $440 | $727 |
| Memphis, TN | $142 | $557 | $699 |
| Boston, MA | $167 | $531 | $698 |
| Seattle, WA | $161 | $535 | $696 |
| Jacksonville, FL | $200 | $484 | $684 |
| Phoenix, AZ | $125 | $552 | $677 |
| Los Angeles, CA | $127 | $546 | $673 |
| Chicago, IL | $172 | $500 | $672 |
¹Median Monthly Auto Insurance Bill + Median Monthly Auto Loan Bill x 12 months per year = Median Annual Cost per U.S. Household.
²Median Monthly Auto Insurance Bill + Median Monthly Auto Loan Bill = Monthly Total
The information presented above and in the reports is derived from the doxoINSIGHTS 2025 U.S. Household Bill Pay Report, which reflects a 12-month overview of actual consumer payment data from March 2024 to March 2025. To access the latest analysis of household bill expenses, click on the state or city hyperlinks within the chart. Alternatively, you can visit www.doxo.com/w/explore and select a state to explore household bill expense data for each state, county, and city.
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