Car ownership costs surge as repairs, insurance and maintenance rise sharply

Experts highlight that the rising expense of car ownership is now a major shock of the inflation period, with overall costs up 50% since 2020. Repair costs have surged 70% in five years, averaging roughly $1,750 for a new vehicle during its first five years of use, according to AAA. Insurance premiums have climbed, with full-coverage policies costing about $2,124 per year and minimum coverage around $816.

Drivers are keeping cars longer, pushing the average fleet age to 14.5 years, which adds to service charges as newer models contain more electronic parts and sensors that are costly to fix. A shortage of qualified mechanics allows shops to charge higher rates, further inflating ownership costs.