← Guides · November 12, 2026
Car Maintenance and Insurance Budget: What to Set Aside Each Year
Maintenance and insurance are the costs people guess at most. They are also the ones that most often turn a car that “fits the budget” into a strain. A simple yearly budget avoids that.
Break maintenance into two buckets
- Routine, predictable: oil changes, filters, tire rotation, inspections, wiper blades. You can plan these from the maker’s service schedule.
- Wear and tear, less predictable: tires, brakes, battery and, as the car ages, repairs. These come in larger, irregular amounts.
A common approach is to set aside a fixed amount per month in a separate account so that big bills are already covered. The right amount depends on the car’s age, model and mileage, so there is no universal number. Older and higher-mileage cars tend to need more.
A simple example
Say your routine upkeep is about $300 per year, and you expect to replace a set of tires ($700) every 4 years and brakes ($400) every 3 years. The yearly set-aside is roughly:
$300 + $700 ÷ 4 + $400 ÷ 3 = $300 + $175 + $133 = about $608 per year, or about $51 per month. Then add a cushion for repairs, especially on an older car. The calculator’s default of $900 per year allows for that.
Insurance
Premiums depend on the car, where you live, your driving record, the coverage you choose and the deductible. To keep the cost reasonable:
- Compare quotes from several insurers each year.
- Think about the deductible: a higher one lowers the premium, but only choose one you could actually pay.
- Ask about discounts for safe driving, bundling policies or low mileage.
- Get a quote before you buy. Two cars with the same price can have very different premiums.
Put it in the total
Both numbers belong in the yearly budget. In the total cost example, insurance of $1,800 and maintenance of $900 add up to $13,500 over 5 years, more than the interest and nearly as much as the depreciation of a modest car. Use the calculator with your own quotes.
Numbers are illustrative. Costs vary by car, location and provider. This is general information, not financial or insurance advice.
More guides
- Car Depreciation Explained: How Much Value You Lose and How to Estimate It
- Cost Per Mile of Driving: How to Calculate It and What to Do With It
- Financing vs Paying Cash for a Car: What the Interest Really Costs
- Fuel Cost and MPG: How Much Does Fuel Economy Really Save?
- How Long Should You Keep a Car? A Cost-Per-Month View
Written by the Wheelwise editorial team. Figures are illustrative and rules change, so check official sources. See how we write and update guides on the About.