What Drivers Are Paying Now
The price tag and monthly note are just the cover charge. Insurify's latest analysis says the average driver spends $5,851 a year on insurance, gasoline, and maintenance or repairs.
The biggest chunk is insurance at $2,237 for full coverage. Fuel adds $2,126, and upkeep comes in at $1,488. Insurify drew on its insurance quote data and paired it with AAA's fuel and maintenance estimates. And that annual tally sits on top of your car payment.
Those payments are not small. Experian reports average monthly notes in the second quarter of $765 for new cars and $542 for used.
Sticker prices are still elevated. Kelley Blue Book puts July's average new-car transaction at $49,855, while Cox Automotive shows used listings at $27,028. Overall consumer prices have risen roughly 30% in that span, which helps explain why car ownership is squeezing more budgets.
Why Costs Are Jumping
Insurance is one of the fastest risers. Bureau of Labor Statistics data through July show auto insurance costs are up about 50% since July 2019, including a surge of more than 40% from mid 2022 to mid 2024.
Part of the push comes from pricier repairs on modern, tech-heavy vehicles. "Newer vehicles have more sophisticated electronics and systems, making them more expensive to repair than simpler vehicles from years past," said Julia Taliesin, economic analyst at Insurify. "Higher repair costs mean more expensive insurance claims, which insurers factor into their rates."
Maintenance is trending higher too. In 2025, AAA estimated upkeep for a new vehicle at 11.04 cents per mile. At 15,000 miles a year, that works out to $1,656.
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That is about 23.5% higher than AAA's 2019 estimate of 8.94 cents per mile, which translates to $1,341 at the same annual mileage. Used cars may cost less upfront, yet age increases the likelihood of repairs - something to keep in mind.
Fuel Adds More Pressure
Gas prices have cooled from recent extremes but still sting. On Friday, AAA put the national average for regular at $4.29 a gallon. That is below the 2026 peak of $4.56 in May and well under the $5.01 spike in mid 2022. Even so, GasBuddy data show prices are 56% higher than July 2019, when a gallon averaged about $2.75.
Oil has been climbing as markets brace for a prolonged Iran War and potential limits on Middle East tanker traffic. Last week, U.S. West Texas Intermediate futures climbed past $102 per barrel, then by Friday had slipped to roughly $99, with Brent near $104. Before the war began, on Feb. 28, those benchmarks were $67 and $72, respectively.
Diesel is an even bigger punch to the wallet. AAA pegged it at $6.05 per gallon on Friday, a record high.
What It Means for Your Portfolio
The squeeze is coming from several directions at once: insurance outpacing overall inflation, repairs for complex cars getting pricier, and fuel still well above the pre 2020 norm.
Premiums vary significantly depending on the vehicle, your location, and your history behind the wheel. In some states, insurers can consider a credit-based insurance score, which they say gauges the likelihood of filing a claim. A lower score can mean higher rates.
That is why the model you pick matters beyond the sticker and monthly payment.
For planning, the $5,851 annual average breaks down to $2,237 for insurance, $2,126 for gas, and $1,488 for maintenance and repairs, not including any loan. If you drive around 15,000 miles a year, AAA's 2025 estimate points to $1,656 for upkeep, compared with $1,341 using its 2019 baseline. Gas sits at $4.29 today, oil is trading around $99 to $104, and insurance has climbed about 50% since July 2019. All of that can shift your monthly cash flow and, in turn, how much you are able to invest.
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