Drivers are facing high vehicle ownership costs, while auto insurance is taking a larger share of household income. For auto glass shops, that means customers may be weighing windshield work against a long list of other vehicle-related costs.
The Cost of Keeping a Vehicle on the Road
AAA’s 2026 Your Driving Costs analysis estimates the average annual cost of owning and operating a new vehicle at $12,863, or $1,071.92 per month.
The calculation includes fuel, maintenance, repairs, tires, depreciation, financing and other expenses. Depreciation was the highest single cost at $4,422 per year.
Austin Shivers, AAA’s lead engineer who worked on the analysis, says several factors are driving up maintenance and repair costs.
“Certainly, some of the increase is driven by technology and complexity of new cars, but steady increases in labor rates in recent years are also a factor,” he explains.
Insurance Adds to the Affordability Pressure
Insurance costs are also putting additional pressure on household budgets.
The Insurance Information Institute (Triple-I), working with the Insurance Research Council, developed a new Insurance Affordability Index showing that personal auto insurance represented 1.7% of median household income nationwide in 2025, up 9% from 2020.
Triple-I also found that affordability varies considerably by state, reflecting differences in market conditions, risk levels and the cost of settling claims.
Mark Friedlander, Triple-I’s senior director of media relations, says repair costs remain a major factor in personal auto premiums, even as the pace of rate increases moderates.
“Repair costs are one of the top drivers of personal auto premium increases, though the pace of rate hikes is moderating across the U.S.,” he notes.
Triple-I’s analysis found cumulative replacement costs increased 30% from 2020 through 2024, twice the U.S. inflation rate over that period.
For auto glass businesses, those numbers provide context for customers calling about a chip or cracked windshield or asking about replacement. A glass repair or replacement can be another expense alongside fuel, insurance, maintenance, and financing.
When Affordability Shapes Repair Decisions
Shivers said AAA does not have recent data showing drivers are postponing repairs but noted that drivers have historically delayed auto maintenance when household finances tighten.
For auto glass shops, this can make the conversation about necessary work even more important.
“Putting off or forgoing maintenance or repairs to save money could cause further damage or make a vehicle unsafe to drive,” says Shivers. “Customers need to have a clear understanding of what repairs are needed and why they are important.”
