Own a car? You're getting socked by higher prices, and not only for gas

Americans have had to shell out more to fill up their cars in recent months as the war with Iran drives up prices at the pump. But those expenses go far beyond fuel.

"The rising cost of car ownership has been the big shocker of the inflation crisis," Heather Long, a chief economist at Navy Federal Credit Union, told CBS News.

An analysis by the credit union found that car ownership costs have risen 50% since 2020. The main reason isn't pricier fuel, but rather higher repair costs, which have surged 70% in the last five years, according to Long.

Repair costs average around $1,750 for a new car for the first five years of ownership, according to AAA data.

"Repair costs can be hundreds of dollars, if not thousands of dollars," Long said. "So in many ways, those are the hidden costs."

The other primary factors driving up the financial burden of having a car are rising auto insurance rates and higher routine maintenance costs, followed by the jump in gas prices, according to Navy Federal Credit Union.

The average cost of car insurance in 2026 is $2,124 per year for full coverage and $816 annually for minimum coverage, according to LendingTree.

People are holding on to their cars for longer, which often leads to higher service charges, Long said. The overall fleet age for passenger cars in the U.S. was 14.5 years in 2025, according to the Transportation Department.

Long said cars now have more electronic parts and sensors, which are more expensive to repair. A shortage of mechanics also allows them to charge more for their services.

"Good mechanics can really write their own price these days, and they're doing it," she said.

Gasoline still represents a core cost for American motorists, who are now paying an average of $4.33 at the pump, according to AAA, up 45% since the Iran war started in late February.

The cost to own and operate a new vehicle is $12,863 per year, or $1,071.92 per month, according to a separate analysis by AAA.