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doxo, a web and mobile bill pay service, on Aug. 24 released two new doxoINSIGHTS reports for 2022, revealing the cost of car ownership has increased 5% year over year to $5,722.

The report also revealed Americans as a whole spend $743 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 2022 U.S. Auto Loan Market Size and Household Spending Report and the 2022 U.S. Auto Insurance Market Size and Household Spending Report found U.S. Households with auto loan and auto insurance bills spend $629 per month, or $7,548 per year—or $5,722 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.

A number of factors have combined to drive up costs across both categories. 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.

The 5% year over year increase in loan and insurance costs that doxo tracks represents only the fixed cost of ownership and doesn’t include the substantial increases that have occurred over the past year with regard to the variable cost of fuel.

“The last few years created a bit of a perfect storm to increase the

cost of car ownership across the category. Driving went back to pre-pandemic rates, and so did the accidents and insurance rates associated with it, just as the cost of buying a car and buying gas were both on the rise,” said Jim Kreyenhagen, vice president marketing and consumer services, doxo. “doxoINSIGHTS gives consumers transparency into the average costs in both auto loans and insurance so they can make informed decisions about their own finances, whether that’s negotiating a better rate with their insurance company or rightsizing their auto loan with their budget.” different service categories. By incorporating tens of millions of bill payments across 97% of 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 $743 billion dollars a year on auto loans and auto insurance

The average annual cost per household is $5,722 a year for both auto loans and auto insurance

Auto Loans Market Size and Household Spending Snapshot

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

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Total Market Size: $493 billion spent per year

Average Monthly/Annual Cost: $433 spent per month; $5,196 spent per year

Percent of Households: 73% of U.S. households pay auto loans

Average Annual Cost per U.S. Household: $3,793 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: $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

Source: doxo

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