Insights » Cost of Car Ownership in 2023

Cost of Car Ownership in the U.S.: Auto Insurance and Auto Loans Reports for 2023

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Two new reports from doxo reveal that the cost of car ownership has increased 7% year over year to $6,184 per year.

The reports also reveal that Americans as a whole spend $811 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 2023 U.S. Auto Loan Market Size and Household Spending Report and the 2023 U.S. Auto Insurance Market Size and Household Spending Report found that U.S. Households with Auto Loan and Auto Insurance bills spend $674 per month, or $8,088 per year – or $6,184 when averaging across all U.S. households.1 

The average annual cost per household is $6,184 a year for both Auto Loans and Auto Insurance1

Auto Loans Market Size and Household Spending Snapshot

  • Total Market Size: $544 billion spent per year
  • Average Monthly/Annual Cost: $467 spent per month; $5,604 spent per year
  • Percent of Households: 74% of U.S. households pay Auto Loans
  • Average Annual Cost per U.S. Household: $4,147 per year1 
  • Percent of Annual Income: Auto Loan bills amount to 9% of consumers’ income per year

Auto Insurance Market Size and Household Spending Snapshot

  • Total Market Size: $267 billion spent per year
  • Average Monthly/Annual Cost: $207 spent per month; $2,484 spent per year
  • Percent of Households: 82% of U.S. households pay Auto Insurance
  • Average Annual Cost per U.S. Household: $2,037 per year1 
  • Percent of Annual Income: Auto Insurance bills amount to 4% of consumers’ income per year

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