The 5 Most Expensive States for Car Ownership
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Americans spend $698 billion on car insurance and car loans combined, according to doxo, in two of its recent doxoINSIGHTS reports. The web and mobile bill pay service used its data to claim that certain areas of the country are more expensive for car ownership than others.
In fact, it was found that U.S. households with car loan and car insurance bills spend about $598 per month, or $5,435 per year, when averaging across all U.S. households.
Certain areas of the country are more expensive for car ownership than others.
Top five expensive states for car ownership
According to the reports, Wyoming is the most expensive state to own a car. On average, doxo says residents spend almost $900 monthly on both car insurance and car loans.
In the reports, Wyoming is followed by Alaska (an average monthly total of $747 for both car insurance and car loans), North Dakota ($700), Hawaii ($689) and Massachusetts ($665).
The reports used a statistical analysis of actual household payments toward car loans and car insurance to size the market and what each household spends.
The reports went even further in depth by breaking down the U.S. household spending market size, average monthly and yearly bill costs by state, percentage of households that pay each bill, and more.
The most expensive cities to own a car
doxo also looked at the most expensive metro areas in the U.S. for car ownership.
New York is at the top of that list, with a monthly total of $703 spent on both car insurance and car loans.
New York is followed by Miami ($674), Denver ($655), Boston ($651), and Seattle ($638).
doxo points out that these findings come at a time when crude oil prices have hit their highest rate in three years, and as car prices are expected to be high with limited inventories through the rest of the year.
For this reason, the company says location-specific breakdowns are important for showing consumers how much they can expect to pay for their car compared to their neighbors.
Other stats from the reports
According to doxo, 73% of U.S. households pay car loans, with the average annual cost per U.S. household being $3,065 per year. The total market size is $463 billion per year, and car loans also amount to about 8% of consumer’s yearly income.
The average monthly cost of car loans is $412, while the average annual cost is $4,944.
When it comes to car insurance, doxo says that the total market size is $235 billion spent per year. The average monthly cost of car insurance is $186 spent per month, with $2,323 spent per year.
In addition, about 82% of households pay car insurance, at an average annual cost of $1,830 per U.S. household. Car insurance is estimated to amount to 3% of consumers’ income per year.
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