Driving has become much more expensive recently at least compared to the last several years. The average price of a regular gallon of gas nationwide is $3.44, up from $2.46 a year ago. In two states–California and Hawaii–the price is above $4.00. As the price of oil surges toward $100, the price of gas will continue to rise.
The cost of new and used cars has reached record levels because of a shortage of inventory. This has been caused by a shortage of chips used for car electronics systems. The problem has shuttered manufacturer assembly lines. Experts believe the problem will persist through most of this year.
These two issues are not the only things that contribute to the cost to drive a car. Between insurance payments, fuel, and maintenance and repairs, American motorists spend about $2,807 a year on average on their car — not including car loan payments. These costs can vary substantially by state, however, and in some parts of the country, motorists can expect to spend over $2,000 more on average than in others.
Using data from a range of sources, including the Federal Highway Administration, the Environmental Protection Agency, and AAA, 24/7 Wall St. calculated the most expensive state to drive in. Due to incomplete data, Alaska was excluded from the analysis.
[nativounit]
It is important to note that the two largest components of this ranking of car ownership expenses — insurance and fuel — are based on averages and per capita expenditures. At an individual level, these costs can vary considerably based on driving habits, accident history, vehicle, and local gasoline prices, among other factors
One reason for the high costs in many of the most expensive states to drive is higher than average insurance prices. States can have higher insurance payments due to any number of factors, including high risk of severe weather events in states like Florida and Louisiana, or laws requiring a high minimum coverage threshold in places like Michigan. In states with low insurance costs, like Maine and Vermont, low population density reduces the risk of an accident.
The most expensive state to drive a car is Louisiana. Here are the details:
> Avg. annual cost of car ownership $4,123
> Avg. cost of a check-engine light repair: $236 parts (25th lowest); $156 labor (4th highest)
> Avg. annual insurance costs: $2,839 (the highest)
> Annual gasoline expenditure per licensed driver: $892 (14th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.82 per gallon (2nd lowest)
Methodology: To determine the most expensive state to drive, 24/7 Wall St. calculated the annual average cost of car ownership based on the average cost of repair, insurance, and gasoline.
Data on the average cost of a check engine light-related car repair, including parts and labor, came from automobile software developer CarMD and is for 2020. Data on the average annual insurance costs by state came from car review website insure.com and are based on full coverage for a single, 40 year-old male with a clean record and good credit and are for the 2021 model-year versions of the 20 best-selling vehicles in the United States as of Jan. 2021. Data on average gasoline expenditure per driver was calculated using total vehicle miles traveled by state in 2019 from the Federal Highway Administration; the total number of licensed drivers in 2019, also from the FHWA; the average price of a regular gallon of gasoline by state as of July 20, 2021 from AAA; and the average fuel economy for all U.S. vehicles in 2019 from the Environmental Protection Agency. All data is for the most recent period available. Total costs assume one check engine light repair per year.
Supplemental data on the percentage of households in urban and rural areas came from the U.S. Census Bureau and are for 2010.
Click here to read The Most Expensive States To Drive
[wallst_email_signup]
Top Gaining Stocks
Top Losing Stocks