States Where It’s Most Expensive to Own and Operate a Car

While buying a new car comes with a hefty price tag, the overall costs of ownership can vary dramatically depending on where you live. According to Forbes Advisor’s latest analysis in their “The Most Expensive States For Car Ownership 2024” report, some parts of the United States burden drivers with much higher expenses for insurance premiums, fuel, maintenance and other factors related to operating a vehicle.

From the crowded metropolitan areas on the coasts to regions prone to severe weather events, certain states consistently rank among the priciest for car owners. Whether it’s high insurance rates driven by dense populations, steep taxes on gasoline, frequent repair needs due to extreme climates, or inflated costs for real estate and services, the compounding expenses can put significant financial strain on drivers.

This report reveals the most expensive states for car ownership in 2024 according to Forbes Advisor. Here, we’ll cover the key factors driving up costs in each state. Let’s take a look!

Washington

• Average Used Car Cost: $36,119
• Annual Car Insurance Rate: $1,525           
• Average Cost of Car Repair: $392.46
• Average Cost of Regular Gasoline: $3.90

While its annual car insurance rates are on the low side, Washington is a pretty expensive place to own a car in most other respects. The cost of a used car is the eighth-highest, and its gas prices are the third-highest per gallon.

Colorado

• Average Used Car Cost: $35,269
• Annual Car Insurance Rate: $2,591           
• Average Cost of Car Repair: $417.14
• Average Cost of Regular Gasoline: $2.80

Colorado suffers from the second-worst repair costs in the country, averaging higher than the state of California. Further, it ranks as one of the most expensive for its full coverage car insurance, which is the seventh-highest in the country.

Louisiana

• Average Used Car Cost: $35,893
• Annual Car Insurance Rate: $3,545           
• Average Cost of Car Repair: $388.66
• Average Cost of Regular Gasoline: $2.89

In Louisiana, drivers pay the second-highest rates for full coverage car insurance, ranking just below the state of Florida. Used car prices are also nothing to scoff at, averaging higher than the state of California, making it the 10^th highest in the country.

Georgia

• Average Used Car Cost: $36,016
• Annual Car Insurance Rate: $2,003           
• Average Cost of Car Repair: $407.71
• Average Cost of Regular Gasoline: $3.08

Georgia is a state that suffers from high repair costs. It has the fourth-highest repair costs in the country. Its used car prices are also higher on average, above the average in California, although not as high as in Montana and Alaska.

Alaska

• Average Used Car Cost: $40,462
• Annual Car Insurance Rate: $1,913           
• Average Cost of Car Repair: $387.05
• Average Cost of Regular Gasoline: $3.47

Alaska ranks as the second-most expensive state to buy a used car. That factor, combined with its seventh-highest prices for regular gas, make it the 5^th most expensive state for car ownership.

Montana

• Average Used Car Cost: $38,943
• Annual Car Insurance Rate: $2,354
• Average Cost of Car Repair: $389.84
• Average Cost of Regular Gasoline: $3.01

Montana has the third-highest used car prices in the country with the average cost over $3,000 more than in California. It’s gasoline prices and insurance rates are lower. However, its insurance rates are still the 14^th highest in the country.

Florida

• Average Used Car Cost: $34,519
• Annual Car Insurance Rate: $3,865
• Average Cost of Car Repair: $396.29
• Average Cost of Regular Gasoline: $3.27

Florida pays some of the highest insurance rates in the country, even more than California. Additionally, it pays the 12^th highest amount for regular gas and its car repair costs are only slightly lower than in Nevada.

Nevada

• Average Used Car Cost: $34,859
• Annual Car Insurance Rate: $2,496
• Average Cost of Car Repair: $398.26
• Average Cost of Regular Gasoline: $3.90

Nevada ranks as the 2^nd most expensive state for owning a car. It’s gas prices, tied with Washington, are the third-highest in the country and its average annual insurance coverage is the eighth-highest.

California

• Average Used Car Cost: $35,759
• Annual Car Insurance Rate: $2,768
• Average Cost of Car Repair: $415.66
• Average Cost of Regular Gasoline: $4.62

To Californians, these stats shouldn’t come as a shock. The state has the second-highest gas prices in the country, paying nearly a full dollar more than every other state—except one. Its car repair rates and insurance costs are also among the highest of all 50 states.

Oregon

• Average Used Car Cost: $35,556
• Annual Car Insurance Rate: $1,748
• Average Cost of Car Repair: $393.94        
• Average Cost of Regular Gasoline: $3.59

In addition to Oregon’s used car prices and car repair prices being fairly high, on average, the state pays the fifth highest gas prices per gallon. These factors all contribute to Oregon’s ranking as the 10^th most expensive state to own a car.

Utah

South Dakota

• Average Used Car Cost: $37,192
• Annual Car Insurance Rate: $2,075           
• Average Cost of Car Repair: $377.64                        
• Average Cost of Regular Gasoline: $2.87

South Dakota pays lower than North Dakota’s average for a used car, but it pays more in repair costs and just a cent more for gasoline on average.

Texas

• Average Used Car Cost: $35,061
• Annual Car Insurance Rate: $2,609
• Average Cost of Car Repair: $397.53
• Average Cost of Regular Gasoline: $2.89

Texas pays a lower cost per gallon compared to most states, but it pays much more when it comes to car insurance and repair costs. Densely populated areas like Houston and Dallas have led to higher insurance premiums due to increased traffic and accident risk.

New Jersey

• Average Used Car Cost: $33,936
• Annual Car Insurance Rate: $2,438           
• Average Cost of Car Repair: $399.61
• Average Cost of Regular Gasoline: $3.16

Being a coastal state with high population density, New Jersey may face pricier car repairs due to salt air corrosion and potentially higher insurance rates.

North Dakota

• Average Used Car Cost: $37,773
• Annual Car Insurance Rate: $2,190           
• Average Cost of Car Repair: $364.62                        
• Average Cost of Regular Gasoline: $2.86

North Dakota pays on the lower end when it comes to gas prices and even repair costs. So, why does it rank among the most expensive states to own and operate a car? Both its insurance rates and used car costs are higher than average.

South Carolina

• Average Used Car Cost: $35,015
• Annual Car Insurance Rate: $2,172           
• Average Cost of Car Repair: $395.83
• Average Cost of Regular Gasoline: $2.98

South Carolina has moderately high rates for insurance, car repair, and gasoline. It also pays moderately high prices for used cars, which is why it ranks as the 13^th most expensive place to own and operate a car.

Arkansas

• Average Used Car Cost: $36,343
• Annual Car Insurance Rate: $2,295           
• Average Cost of Car Repair: $382.61
• Average Cost of Regular Gasoline: $2.84

While Arkansas’s gas prices and repair are not as high as South Carolina, the average cost of a used car is over $1,000 more. That factor, combined with its slightly higher insurance rates, make it rank 14^th overall.

New Mexico

• Average Used Car Cost: $35,189
• Annual Car Insurance Rate: $2,082           
• Average Cost of Car Repair: $392.53
• Average Cost of Regular Gasoline: $2.96

New Mexico pays slightly lower car insurance rates than Arkansas, and also pay less on average for a used car. Nevertheless, New Mexico pays more in car repairs and more for gas, which is why they rank just below Arkansas.

Arizona

• Average Used Car Cost: $34,413
• Annual Car Insurance Rate: $2,110
• Average Cost of Car Repair: $388.92        
• Average Cost of Regular Gasoline: $3.25

Arizona pays more than most states when it comes to gasoline, and plenty when it comes to car repairs too. However, its average used car price ranks slightly lower than much of the country, even if not by much.

Connecticut

• Average Used Car Cost: $32,991
• Annual Car Insurance Rate: $2,252
• Average Cost of Car Repair: $418.37        
• Average Cost of Regular Gasoline: $3.25

Despite their low used car cost, Connecticut suffers from somewhat high car insurance rates and gas prices. Moreover, it experiences the highest average for car repairs, which is likely why its insurance rates are so high.

Wyoming

• Average Used Car Cost: $41,405
• Annual Car Insurance Rate: $1,531           
• Average Cost of Car Repair: $397.79        
• Average Cost of Regular Gasoline: $2.73

Wyoming has the lowest average gas prices and one of the lowest car insurance rates in the country. However, it still suffers from high repair costs and pays more for used cars than any other state.

Oklahoma

• Average Used Car Cost: $35,509
• Annual Car Insurance Rate: $2,741           
• Average Cost of Car Repair: $379.77        
• Average Cost of Regular Gasoline: $2.77

Oklahoma residents are paying more for car insurance and more for used cars than much of the country. Areas where its finding relief are in terms of repair costs and gasoline costs. Thus, you may find maintaining a car to be cheaper there.

Illinois

• Average Used Car Cost: $35,217
• Annual Car Insurance Rate: $1,903           
• Average Cost of Car Repair: $379.23
• Average Cost of Regular Gasoline: $3.40

Illinois is on the higher side when it comes to used car prices. It also pays a lot for gas per gallon, and somewhat high insurance rates. Car repairs in Illinois are a little lower than much of the country, but are not too impressive either.

Maryland

• Average Used Car Cost: $33,377
• Annual Car Insurance Rate: $2,210           
• Average Cost of Car Repair: $399.07        
• Average Cost of Regular Gasoline: $3.28

On the flip side, unlike Oklahoma, maintaining your car in Maryland can be more expensive. Despite having a somewhat low average insurance rate and low used car prices, repair costs, and gasoline costs are not ideal.

New York

• Average Used Car Cost: $33,246
• Annual Car Insurance Rate: $2,612
• Average Cost of Car Repair: $386.55
• Average Cost of Regular Gasoline: $3.29

New York suffers from higher car insurance rates, high repair costs and somewhat high gas prices, which is why the state ranks among the most expensive states to own and operate a car.

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