SEATTLE--(BUSINESS WIRE)--doxo, the innovative web and mobile bill pay service, today released two new doxoINSIGHTS reports for 2022, revealing that the cost of car ownership has increased 5% year over year to $5,722. The report also revealed that 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 that 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.”
U.S. Auto Loans and Auto Insurance Market Size and Household Spending Reports
doxo’s bill pay service enables all-in-one bill pay to more than 120,000 providers across the country in 45 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
- 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
Top 5 Most Expensive States to Own a Car
State |
Monthly Auto Insurance Spend |
Monthly Auto Loan Spend |
Monthly Total |
Wyoming |
$307 |
$511 |
$818 |
North Dakota |
$307 |
$460 |
$767 |
Delaware |
$238 |
$476 |
$714 |
Massachusetts |
$229 |
$461 |
$690 |
Hawaii |
$228 |
$459 |
$687 |
Top 5 Most Expensive Big U.S. Cities to Own a Car
City |
Monthly Auto Insurance Spend |
Monthly Auto Loan Spend |
Monthly Total |
New York |
$448 |
$546 |
$994 |
Miami |
$370 |
$503 |
$873 |
Tampa |
$339 |
$478 |
$817 |
San Jose |
$200 |
$584 |
$784 |
Atlanta |
$247 |
$477 |
$724 |
For more information, or to view both reports, visit www.doxo.com/insights/.
*Average Monthly Bill x % of Households with Bill x 12 months per year = Average Annual Cost per U.S. Household.
About doxoINSIGHTS
doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo’s unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 7 million paying consumers across over 97% of U.S. zip codes. doxo’s payment network covers over 120,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports – uncovering key trends for household financial health and bill payment behavior.
About doxo
doxo provides simple, secure all-in-one bill payment to any biller, with any payment method, on any device. A doxoPLUS subscription adds free bank payments and five essential financial protections that boost household financial health. Through these services, doxo currently serves over seven million users who can make payments to over 120,000 local and national businesses, making doxo the largest bill pay directory in the nation. Billers on the network get paid directly, fast and free – and consumers have complete bill pay independence over when and how they pay their bills. doxo investors include Jackson Square Ventures, MDV, Sigma Partners, and Bezos Expeditions. doxo is based in Seattle, WA. For more information visit www.doxo.com.
