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There’s freedom in getting behind the wheel of your own car. But sometimes the costs associated with owning a car can feel more like financial detention.
Beyond the initial purchase price, car owners must deal with a host of expenses, from repair costs to insurance premiums. As of 2023, the cost of owning and operating a new car is up to $12,182 a year, or $1,015 a month, according to AAA.
And as we discovered, car ownership is a greater financial burden in some parts of the country thanks to higher gas prices, repair costs and car insurance.
To determine which states are the most expensive for car ownership, our experts analyzed gas prices (using data collected in February 2024), car repair costs, car insurance rates and used car prices for all 50 states.
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Key Takeaways
- California is the most expensive state in which to own a car, while New Hampshire ranks as the least expensive.
- Seven of the 10 most expensive states for car ownership are in the Pacific and West: California, Nevada, Montana, Alaska, Colorado, Washington and Oregon.
- Five of the 10 least expensive states for car ownership are in the Midwest: Ohio, Indiana, Wisconsin, Missouri and Minnesota.
- Florida is the most expensive state for full coverage car insurance with an average annual cost of $3,865.
Top 10 Most Expensive States To Own A Car
1. California
California’s score: 100 out of 100
Drivers in California bear the brunt of some of the highest car ownership costs in the country, including:
- California drivers pay the second highest price for regular gas at $4.62 per gallon.
- Drivers in the Golden State also pay the third highest amount for car repairs related to the check engine light, ($415.66) and for full coverage car insurance ($2,768 average annual cost).
2. Nevada
Nevada’s score: 80.63 out of 100
Nevada car owners pay steep prices for gas and car insurance, ranking second on our list for the most expensive states overall for car ownership.
- In Nevada, gas prices are tied with Washington for being the third highest, at $3.90 per gallon for regular gasoline.
- Drivers in the Silver State also pay the eighth-highest average annual cost for full coverage car insurance, totaling $2,496.
3. Florida (tie)
Florida’s score: 75.03 out of 100
Drivers in Florida are at the top of the list when it comes to paying for full coverage car insurance in the country.
- Florida drivers pay the highest average amount for full coverage car insurance at $3,865 annually.
- Drivers in the Sunshine State also deal with the 12th highest gas prices nationwide, shelling out $3.27 per gallon for regular gasoline.
3. Montana (tie)
Montana’s score: 75.03 out of 100
Montana tied with Florida as the third most expensive state to own a car, as well as the third most expensive state for purchasing a used car.
- Buying a used car in Montana is the third priciest among all states, costing an average of $38,943.
- Montana drivers also face the 14th highest average cost for full coverage car insurance, at $2,354 annually.
5. Alaska
Alaska’s score: 73.53 out of 100
Alaska car owners are dealing with high used car prices.
- Alaska ranks second in the nation to buy a used car. The average used car price is $40,462.
- In Alaska, gas prices rank as the seventh highest nationwide, standing at $3.47 per gallon for regular gasoline.
6. Georgia
Georgia’s score: 70.67 out of 100
Georgia may not be in the top three most expensive states to own a car, but drivers face high costs to maintain the health of their vehicles, including repairs.
- Georgia drivers face the fourth highest average expense for car repairs, totaling $407.71.
- Drivers in the Peach State also have the ninth highest average price for used cars, at a cost of $36,016.
7. Louisiana
Louisiana’s score: 69.99 out of 100
Drivers in Louisiana face high costs to insure their vehicles.
- In Louisiana, drivers pay an annual average of $3,545, the second highest average in the country, for full coverage car insurance.
- Drivers in the Bayou State also come in tenth for the cost of used cars, averaging $35,893.
8. Colorado
Colorado’s score: 69.03 out of 100
Colorado drivers are paying some of the steepest prices in the country to keep their cars running in good condition.
- Centennial State drivers pay the second-highest cost for fixing check engine light issues, averaging $417.14.
- Colorado also ranks seventh for full coverage car insurance, costing drivers an average of $2,591 per year.
9. Washington
Washington’s score: 65.76 out of 100
Washington drivers are among the top three states in the nation when it comes to paying high gas prices.
- Washington ties with Nevada for the third highest price per gallon of gasoline coming in at $3.90 per gallon.
- Buying a used car in Washington is also pricey, ranking as the eighth most expensive state on average, at $36,119.
10. Oregon
Oregon’s score: 65.08 out of 100
Oregon rounds out our list of the most expensive states for car ownership, with higher than average costs for gas and used cars.
- Oregon's gas prices rank fifth highest, at $3.59 per gallon for regular gasoline.
- In Oregon, the average cost of buying a used car is $35,556, making it the 13th most expensive state in the nation.
How Car Insurance Can Help Save on Car Ownership Costs
With car ownership on an upward trend, it’s clear Americans love their cars.
There were 278 million registered personal and commercial vehicles on the road as of 2022, an increase of 3.5% from 2018 to 2022.
With that many cars on the road, ensuring you and your car are covered with car insurance is the smart thing to do. Not only can it help offset the cost of repairs, but it can protect you in the case of an accident.
The average cost of full coverage car insurance is $2,150 a year. And as insurance rates keep going up, it might seem impossible to find cheap car insurance. Luckily, there are still companies that offer economical options for car insurance coverage.
While the state in which you live is a huge factor that contributes to your insurance premium, there are a number of conditions that car insurance companies use when determining the cost of car insurance, including:
- Driving record: A driver with accidents and tickets on their record will pay more than a good driver with a clean record.
- Age and years of driving: A younger, newer driver will pay more than a more mature, experienced driver.
- Gender: Unfortunately, like age, gender also plays a role in your insurance costs. Young males are more likely to pay more for insurance than females.
- Marital status: A driver who is married may get cheaper insurance than a single driver.
- Car make and model: How expensive it is to repair your car based on its make and model also contributes to the cost of your insurance.
- Coverage selection: The type of coverage you choose will affect the overall cost of your insurance.
There are many different car insurance companies with many different types of car insurance coverage. It’s best to do your homework when deciding how much car insurance you need.
Methodology
To determine which states are the most expensive for car ownership, Forbes Advisor examined data for all 50 states across the following metrics:
- Average cost of a used car (35% of score): Data for this metric comes from iSeeCars and is from 2022.
- Average annual cost of full coverage car insurance (25% of score): This metric includes full coverage car insurance rates based on a 40-year-old female driver with a Toyota RAV4 and liability coverage of 100/300/100 ($100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage), uninsured motorist coverage, and collision and comprehensive insurance with a $500 deductible. We used data from Quadrant Information Services.
- Cost of regular gasoline (20% of score): Data for this metric comes from AAA and was collected on February 14, 2024.
- Average car repair cost (20% of score): This metric includes the cost of parts and labor for a check engine light-related car repair. Data for this metric comes from CarMD and is from 2022.
