U.S. Drivers Spend Average Of $5,851 A Year On Car Ownership, Insurify Says

According to CNBC, U.S. drivers spend an average of $5,851 a year on car ownership, according to new research from Insurify. The biggest cost is full-coverage auto insurance at $2,237 a year, followed by gasoline at $2,126 and maintenance or repairs at $1,488. The analysis used Insurify insurance-quote data and AAA estimates for gas and maintenance. The article said the yearly cost comes on top of average monthly auto loan payments of $765 for new cars in the second quarter and $542 for used cars, according to Experian. It also said the average amount paid for a new car in July was $49,855, while the average used-car list price was $27,028, according to Kelley Blue Book and Cox Automotive. Those prices were about 34% and 29% higher, respectively, than in July 2019. Auto insurance costs have risen about 50% since July 2019, according to Bureau of Labor Statistics data through July. Insurify economic analyst Julia Taliesin said premiums were pushed higher in part by inflation-driven increases in vehicle repair costs, while advanced vehicle technology has also made repairs more expensive. Karl Brauer, executive analyst for iSeeCars, said buyers should know insurance costs before purchasing a vehicle. Gasoline prices have also climbed. AAA said the average price of regular unleaded gasoline was $4.29 a gallon as of Friday, down from $4.56 in May but 56% higher than in July 2019. Diesel was $6.05 a gallon, a record high, according to AAA. The article also said U.S. West Texas Intermediate crude futures rose above $102 a barrel last week before easing to about $99 on Friday, while Brent crude traded around $104 a barrel.