PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How do I calculate a car allowance for employees?
I’m trying to figure out my company budget, but I don’t know what to give my employees to cover car maintenance. What steps should I take to calculate a car allowance for employees?
Matthew Macgugan · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Budgeting can be a tricky task! To calculate a car allowance for your employees, you should research all the expenses involved with owning a vehicle, like monthly payments, insurance, fuel, and repairs. Here are some of the main expenses you should consider:
- Monthly car payments. On average, people pay between $300-$500 per month on their car loan payments.
- Insurance costs. Theaverage car insurance cost in 2021ranges from around $147 to $200 a month, depending on the car, location, and provider.
- Fuel and mileage costs. Your budget for gas should depend on the average distance employees drive to get to work.
- Maintenance and repair costs. Have your employees report the average annual cost of repairs for their vehicles and double-check their information. Then, you can account for the cost of their car maintenance,
Add up all the figures you’ve calculated to determine the car allowance for your employees! If you’d like to help your employees and company save some money, use
Jerry
to help your office find lower insurance rates!A licensed broker, the Jerry app helps users save an average of $879 a year on car insurance. Just answer a handful of questions that will take you roughly 45 seconds to complete, and you’ll immediately get car insurance quotes for coverage similar to your current plan!
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies