Full Breakdown
Soaring Costs of Car Ownership Amid the Iran Conflict
By Drooid · · How we work
Core Event: Ownership Expenses Jump in 2026
On September 15, 2026, CBS News reported that Americans are paying substantially more to keep their cars on the road. A Navy Federal Credit Union analysis found that total car-ownership costs have risen about 50 % since 2020, with the most dramatic increase coming from repair expenses.
Drivers of the Cost Increase
Heather Long, chief economist at Navy Federal Credit Union, identified three primary drivers:
- Repair costs – up 70 % over the past five years as vehicles incorporate more electronic parts and sensors, which are pricier to fix.
- Insurance premiums – the average annual cost for full-coverage auto insurance in 2026 is $2,124, while minimum coverage averages $816 per year, according to LendingTree data.
- Fuel prices – gasoline averages $4.33 per gallon, a 45 % rise since the Iran war began in late February, based on AAA figures.
Long also noted that the average age of the U.S. passenger-car fleet reached 14.5 years in 2025 (U.S. Department of Transportation), meaning many vehicles stay on the road longer and incur higher service charges. A shortage of qualified mechanics further enables shops to command higher rates.
Data Summary
- Repair spend: average $1,750 for a new car during its first five years (AAA).
- Total ownership cost: AAA estimates the annual cost to own and operate a new vehicle at $12,863, or $1,071.92 per month.
Official Commentary
Long emphasized that the surge in repair bills represents a “hidden cost” of modern vehicles, especially as electronic components become standard. She linked the higher insurance rates and fuel prices to broader inflation pressures stemming from the ongoing Iran conflict.
Verbatim Quotes
- “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
- “Repair costs can be hundreds of dollars, if not thousands of dollars,” — Heather Long, a chief economist at Navy Federal Credit Union