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The Blind Spot in Car Buying: Why Many Risk Sticker Shock on Auto Insurance

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By Susan Meyer Info
Updated May 20, 2026
Quality verified Reviewed By Beth Swanson Info
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Susan Meyer
Senior Editorial Manager

Susan is a licensed insurance agent and has worked as a writer and editor for over 10 years across a number of industries. She has worked at The Zebr…

Credentials
  • Licensed Insurance Agent — Property and Casualty
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Beth Swanson
Insurance Analyst

Beth joined The Zebra in 2022 as an Associate Content Strategist. A licensed insurance agent, she specializes in creating clear, accessible content t…

Credentials
  • Licensed Insurance Agent — Property and Casualty
  • Associate in Insurance (AINS)
  • Professional Risk Consultant (PRC)
  • Associate in Insurance Services (AIS)
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  1. How much it costs to buy a car
  2. Many people aren't pricing insurance
  3. Why you should shop for insurance before buying a car

Is Car Insurance a Forgotten Line Item?

When shopping for a new vehicle, most buyers spend hours obsessing over the final out-the-door price, monthly dealership financing, and fuel efficiency. Yet, there is a massive, ongoing cost that frequently flies under the radar until it is too late: car insurance.

Buying a car is expensive. In 2026, the average new-car payment reached $773 per month.[1] However, the average amount Americans are now paying for auto insurance is $188 a month ($2,256 a year). So if you pay the average car payment and the average insurance rate, insurance is increasing your monthly outlay by 24%.

And yet, not everyone considers insurance costs when buying a car. A recent May 2026 consumer survey reveals a glaring gap in how car buyers budget for vehicles, showcasing that while insurance is a massive financial variable, millions are still buying blind.

The Cost to Buy and Own a Car

At the outset, when buying a car, many people focus on the initial cost of financing their vehicle and how much car they can realistically afford within their budget. However, the cost of owning a car isn't just the car payment. According to AAA, the average annual cost of owning a car is over $12,000 a year or a little over $1,000 a month.[2] 

This includes:

  • icon-rideshare
    Car Payment

    Around 80% of new and 38% of used vehicle sales were financed with either a loan or a lease, and the average payment is $773.

  • icon-quote
    Car Insurance

    Required in almost all states, car insurance varies significantly by where you live, who you are, and how you drive. The average cost in the U.S. in 2026 is $188 a month.

  • icon-money
    Gas

    The average American household spends $2,000 to $2,500 on gas each year, or around $160 to $210 a month. This varies based on the number of miles driven and the fuel efficiency of the vehicle.

  • Toolbox two
    Maintenance and Registration

    Oil changes and replacing brake pads, fluids, tires, etc., as they wear out averages around $1,500 per year, but varies widely based on the make, model, and age of the vehicle.

  • icon-creditscore
    Depreciation

    Don't forget to consider the cost of depreciation each year. While not an out-of-pocket cost, the average vehicle loses 15% to 20% of its value in its first year and 10% to 12% in each year after that.

Nearly Half of Car Buyers Don't Price Insurance Before Purchase

We recently surveyed consumers on when they considered the cost of insurance during their car buying journey. According to the survey data, urprisingly 49% of respondents admitted they waited until after their vehicle purchase to price out insurance. 

Did You Price Car Insurance Before Buying a Car?

Source: The Zebra

Given that a good portion of respondents didn't remember whether they shopped first, only 35% of shoppers confidently knew how much their car would cost to insure. 

Here's why that matters. Many people underestimate the cost of their insurance. We asked people after they shopped for insurance if the costs were higher or lower than they anticipated. Over 70% of respondents said their insurance costs were higher than expected, and 35% of people found them to be significantly higher than expected. 

Were Your Insurance Costs What You Expected?

Source: The Zebra

Why You Should Price Out Insurance Before Buying a Car

If you know you'll have to pay a certain amount for insurance anyway, why is it so important to do it before buying a car? 

Insurance rates can vary dramatically depending on the make and model you choose. In some cases, two vehicles with similar prices can have insurance premiums that differ by hundreds — or even thousands — of dollars per year. Getting insurance quotes before you buy can help you avoid an expensive surprise and make a smarter financial decision.

Insurance Costs Depend on the Vehicle

Insurance companies look at several factors when calculating rates, including:

  • Repair costs
  • Theft rates
  • Safety ratings
  • Horsepower and performance
  • Likelihood of accidents
  • Availability of replacement parts

For example, a sporty car with a powerful engine will usually cost more to insure than a midsize sedan with strong safety features. Luxury vehicles also tend to come with higher premiums because repairs and parts are more expensive.

A Lower Car Payment Doesn’t Always Mean Lower Costs

A vehicle that fits comfortably within your budget may still strain your finances once insurance is added in. Some buyers are surprised to learn their monthly premium is nearly as much as their car payment.

Before committing to a vehicle, get quotes for a few different models you’re considering. This gives you a clearer picture of the total cost of ownership — not just the purchase price.

Younger drivers can also be hit hardest. Insurance costs are especially important for teens and young adults. Because younger drivers are considered higher risk, choosing the wrong vehicle can send premiums soaring.

Cars with high safety ratings, smaller engines, and lower theft rates are often cheaper to insure and may help younger drivers save significantly.

Balancing Your True Car Budget

The takeaway from the data is stark: there is a major disconnect between what buyers know is important and how they actually behave when standing on a dealership lot. 

Car insurance isn't just a minor administrative fee. It's a fixed, multi-year operational cost. A "great deal" on a vehicle's purchase price can quickly be wiped out if that specific make or model triggers a massive premium spike. 

To protect your wallet, pull a quote the moment a vehicle makes your short list. Factoring insurance into your budget before you buy is the only definitive way to ensure your dream car doesn't become a financial nightmare.

Methodology

The survey above on insurance and car buying was part of a monthly user survey through the Marble App. Results were based on 763 respondents. 

Sources

  1. Average Amount Financed for New-Vehicle Purchases Hits Record $43,899 in Q1 2026. [Edmunds]

  2. Breaking Down the Cost of Car Ownership. [AAA]