Car prices — both new and used — are surging in the United States. Rising demand, in conjunction with a limited supply of new vehicles on dealer lots, has led to a 45% increase in the consumer price index for used vehicles since June 2020. Perhaps now more than ever, car buyers should bear in mind that the cost of vehicle ownership goes well beyond the sticker price.
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 and least expensive states to drive in. Due to incomplete data, Alaska was excluded from analysis.
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. Here is a look at the states with the lowest and highest gas taxes.
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. Here is a look at the most expensive cars to insure.
Click here to see the most and least expensive states to drive
Click here to see our detailed methodology
49. Maine
> Avg. annual cost of car ownership $1,960
> Avg. cost of a check-engine light repair: $219 parts (9th lowest); $138 labor (4th lowest)
> Avg. annual insurance costs: $858 (the lowest)
> Annual gasoline expenditure per licensed driver: $745 (3rd lowest)
> Avg. price of gasoline as of June 20, 2021: $3.12 per gallon (19th highest)
[in-text-ad]
48. New Hampshire
> Avg. annual cost of car ownership $1,997
> Avg. cost of a check-engine light repair: $231 parts (20th lowest); $134 labor (2nd lowest)
> Avg. annual insurance costs: $885 (2nd lowest)
> Annual gasoline expenditure per licensed driver: $747 (4th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.99 per gallon (17th lowest)
47. Vermont
> Avg. annual cost of car ownership $2,133
> Avg. cost of a check-engine light repair: $218 parts (8th lowest); $124 labor (the lowest)
> Avg. annual insurance costs: $1,151 (9th lowest)
> Annual gasoline expenditure per licensed driver: $640 (the lowest)
> Avg. price of gasoline as of June 20, 2021: $3.07 per gallon (24th highest)
46. Ohio
> Avg. annual cost of car ownership $2,229
> Avg. cost of a check-engine light repair: $208 parts (5th lowest); $141 labor (8th lowest)
> Avg. annual insurance costs: $992 (5th lowest)
> Annual gasoline expenditure per licensed driver: $888 (12th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.10 per gallon (20th highest)
[in-text-ad-2]
45. Pennsylvania
> Avg. annual cost of car ownership $2,248
> Avg. cost of a check-engine light repair: $236 parts (23rd lowest); $144 labor (12th lowest)
> Avg. annual insurance costs: $1,028 (6th lowest)
> Annual gasoline expenditure per licensed driver: $841 (8th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.26 per gallon (12th highest)
44. Wisconsin
> Avg. annual cost of car ownership $2,253
> Avg. cost of a check-engine light repair: $208 parts (4th lowest); $141 labor (9th lowest)
> Avg. annual insurance costs: $938 (3rd lowest)
> Annual gasoline expenditure per licensed driver: $965 (23rd lowest)
> Avg. price of gasoline as of June 20, 2021: $3.02 per gallon (22nd lowest)
[in-text-ad]
43. New York
> Avg. annual cost of car ownership $2,270
> Avg. cost of a check-engine light repair: $237 parts (24th highest); $139 labor (6th lowest)
> Avg. annual insurance costs: $1,163 (10th lowest)
> Annual gasoline expenditure per licensed driver: $731 (2nd lowest)
> Avg. price of gasoline as of June 20, 2021: $3.20 per gallon (14th highest)
24/7 Wall St.
42. Indiana
> Avg. annual cost of car ownership $2,370
> Avg. cost of a check-engine light repair: $210 parts (6th lowest); $148 labor (23rd lowest)
> Avg. annual insurance costs: $1,189 (11th lowest)
> Annual gasoline expenditure per licensed driver: $823 (6th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.14 per gallon (17th highest)
41. Iowa
> Avg. annual cost of car ownership $2,386
> Avg. cost of a check-engine light repair: $206 parts (2nd lowest); $150 labor (19th highest)
> Avg. annual insurance costs: $1,032 (7th lowest)
> Annual gasoline expenditure per licensed driver: $997 (23rd highest)
> Avg. price of gasoline as of June 20, 2021: $2.99 per gallon (18th lowest)
[in-text-ad-2]
40. Idaho
> Avg. annual cost of car ownership $2,453
> Avg. cost of a check-engine light repair: $239 parts (23rd highest); $148 labor (24th lowest)
> Avg. annual insurance costs: $985 (4th lowest)
> Annual gasoline expenditure per licensed driver: $1,081 (13th highest)
> Avg. price of gasoline as of June 20, 2021: $3.67 per gallon (7th highest)
39. Virginia
> Avg. annual cost of car ownership $2,492
> Avg. cost of a check-engine light repair: $255 parts (5th highest); $149 labor (25th highest)
> Avg. annual insurance costs: $1,033 (8th lowest)
> Annual gasoline expenditure per licensed driver: $1,056 (16th highest)
> Avg. price of gasoline as of June 20, 2021: $2.98 per gallon (15th lowest)
[in-text-ad]
38. Illinois
> Avg. annual cost of car ownership $2,532
> Avg. cost of a check-engine light repair: $227 parts (17th lowest); $145 labor (15th lowest)
> Avg. annual insurance costs: $1,205 (12th lowest)
> Annual gasoline expenditure per licensed driver: $955 (20th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.40 per gallon (10th highest)
24/7 Wall St.
37. Hawaii
> Avg. annual cost of car ownership $2,547
> Avg. cost of a check-engine light repair: $263 parts (2nd highest); $140 labor (7th lowest)
> Avg. annual insurance costs: $1,254 (17th lowest)
> Annual gasoline expenditure per licensed driver: $890 (13th lowest)
> Avg. price of gasoline as of June 20, 2021: $4.08 per gallon (2nd highest)
36. Arizona
> Avg. annual cost of car ownership $2,575
> Avg. cost of a check-engine light repair: $242 parts (20th highest); $143 labor (10th lowest)
> Avg. annual insurance costs: $1,417 (18th highest)
> Annual gasoline expenditure per licensed driver: $772 (5th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.13 per gallon (18th highest)
[in-text-ad-2]
35. Tennessee
> Avg. annual cost of car ownership $2,585
> Avg. cost of a check-engine light repair: $245 parts (16th highest); $154 labor (7th highest)
> Avg. annual insurance costs: $1,206 (13th lowest)
> Annual gasoline expenditure per licensed driver: $980 (25th highest)
> Avg. price of gasoline as of June 20, 2021: $2.88 per gallon (9th lowest)
34. North Carolina
> Avg. annual cost of car ownership $2,605
> Avg. cost of a check-engine light repair: $252 parts (8th highest); $151 labor (18th highest)
> Avg. annual insurance costs: $1,326 (23rd lowest)
> Annual gasoline expenditure per licensed driver: $876 (11th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.90 per gallon (10th lowest)
[in-text-ad]
33. Massachusetts
> Avg. annual cost of car ownership $2,644
> Avg. cost of a check-engine light repair: $245 parts (17th highest); $136 labor (3rd lowest)
> Avg. annual insurance costs: $1,314 (20th lowest)
> Annual gasoline expenditure per licensed driver: $950 (19th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.03 per gallon (23rd lowest)
32. Alabama
> Avg. annual cost of car ownership $2,649
> Avg. cost of a check-engine light repair: $241 parts (21st highest); $157 labor (3rd highest)
> Avg. annual insurance costs: $1,358 (24th lowest)
> Annual gasoline expenditure per licensed driver: $893 (15th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.84 per gallon (3rd lowest)
31. Delaware
> Avg. annual cost of car ownership $2,679
> Avg. cost of a check-engine light repair: $243 parts (18th highest); $147 labor (17th lowest)
> Avg. annual insurance costs: $1,443 (17th highest)
> Annual gasoline expenditure per licensed driver: $846 (9th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.00 per gallon (20th lowest)
[in-text-ad-2]
30. New Jersey
> Avg. annual cost of car ownership $2,682
> Avg. cost of a check-engine light repair: $260 parts (3rd highest); $143 labor (11th lowest)
> Avg. annual insurance costs: $1,319 (21st lowest)
> Annual gasoline expenditure per licensed driver: $960 (21st lowest)
> Avg. price of gasoline as of June 20, 2021: $3.18 per gallon (15th highest)
29. Kansas
> Avg. annual cost of car ownership $2,686
> Avg. cost of a check-engine light repair: $220 parts (10th lowest); $152 labor (15th highest)
> Avg. annual insurance costs: $1,454 (16th highest)
> Annual gasoline expenditure per licensed driver: $860 (10th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.94 per gallon (13th lowest)
[in-text-ad]
28. Oregon
> Avg. annual cost of car ownership $2,693
> Avg. cost of a check-engine light repair: $249 parts (11th highest); $145 labor (14th lowest)
> Avg. annual insurance costs: $1,229 (14th lowest)
> Annual gasoline expenditure per licensed driver: $1,070 (14th highest)
> Avg. price of gasoline as of June 20, 2021: $3.70 per gallon (6th highest)
24/7 Wall St.
27. Nebraska
> Avg. annual cost of car ownership $2,709
> Avg. cost of a check-engine light repair: $215 parts (7th lowest); $150 labor (21st highest)
> Avg. annual insurance costs: $1,383 (24th highest)
> Annual gasoline expenditure per licensed driver: $962 (22nd lowest)
> Avg. price of gasoline as of June 20, 2021: $3.00 per gallon (19th lowest)
26. Washington
> Avg. annual cost of car ownership $2,709
> Avg. cost of a check-engine light repair: $246 parts (14th highest); $147 labor (19th lowest)
> Avg. annual insurance costs: $1,298 (18th lowest)
> Annual gasoline expenditure per licensed driver: $1,018 (20th highest)
> Avg. price of gasoline as of June 20, 2021: $3.84 per gallon (4th highest)
[in-text-ad-2]
25. Kentucky
> Avg. annual cost of car ownership $2,716
> Avg. cost of a check-engine light repair: $237 parts (25th highest); $152 labor (14th highest)
> Avg. annual insurance costs: $1,321 (22nd lowest)
> Annual gasoline expenditure per licensed driver: $1,006 (22nd highest)
> Avg. price of gasoline as of June 20, 2021: $2.93 per gallon (12th lowest)
24. South Carolina
> Avg. annual cost of car ownership $2,743
> Avg. cost of a check-engine light repair: $240 parts (22nd highest); $154 labor (10th highest)
> Avg. annual insurance costs: $1,409 (20th highest)
> Annual gasoline expenditure per licensed driver: $941 (18th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.92 per gallon (11th lowest)
[in-text-ad]
23. North Dakota
> Avg. annual cost of car ownership $2,765
> Avg. cost of a check-engine light repair: $207 parts (3rd lowest); $150 labor (22nd highest)
> Avg. annual insurance costs: $1,234 (15th lowest)
> Annual gasoline expenditure per licensed driver: $1,174 (4th highest)
> Avg. price of gasoline as of June 20, 2021: $3.08 per gallon (23rd highest)
22. Oklahoma
> Avg. annual cost of car ownership $2,766
> Avg. cost of a check-engine light repair: $220 parts (11th lowest); $159 labor (2nd highest)
> Avg. annual insurance costs: $1,393 (22nd highest)
> Annual gasoline expenditure per licensed driver: $994 (24th highest)
> Avg. price of gasoline as of June 20, 2021: $2.87 per gallon (8th lowest)
21. West Virginia
> Avg. annual cost of car ownership $2,812
> Avg. cost of a check-engine light repair: $228 parts (18th lowest); $149 labor (23rd highest)
> Avg. annual insurance costs: $1,299 (19th lowest)
> Annual gasoline expenditure per licensed driver: $1,136 (6th highest)
> Avg. price of gasoline as of June 20, 2021: $3.05 per gallon (25th highest)
[in-text-ad-2]
20. Arkansas
> Avg. annual cost of car ownership $2,822
> Avg. cost of a check-engine light repair: $227 parts (16th lowest); $156 labor (5th highest)
> Avg. annual insurance costs: $1,462 (14th highest)
> Annual gasoline expenditure per licensed driver: $978 (25th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.86 per gallon (7th lowest)
19. Minnesota
> Avg. annual cost of car ownership $2,827
> Avg. cost of a check-engine light repair: $221 parts (12th lowest); $150 labor (20th highest)
> Avg. annual insurance costs: $1,407 (21st highest)
> Annual gasoline expenditure per licensed driver: $1,049 (17th highest)
> Avg. price of gasoline as of June 20, 2021: $3.00 per gallon (21st lowest)
[in-text-ad]
18. Nevada
> Avg. annual cost of car ownership $2,846
> Avg. cost of a check-engine light repair: $252 parts (9th highest); $144 labor (13th lowest)
> Avg. annual insurance costs: $1,380 (25th highest)
> Annual gasoline expenditure per licensed driver: $1,070 (15th highest)
> Avg. price of gasoline as of June 20, 2021: $3.89 per gallon (3rd highest)
17. Maryland
> Avg. annual cost of car ownership $2,853
> Avg. cost of a check-engine light repair: $254 parts (6th highest); $146 labor (16th lowest)
> Avg. annual insurance costs: $1,410 (19th highest)
> Annual gasoline expenditure per licensed driver: $1,044 (19th highest)
> Avg. price of gasoline as of June 20, 2021: $3.04 per gallon (25th lowest)
16. Mississippi
> Avg. annual cost of car ownership $2,881
> Avg. cost of a check-engine light repair: $236 parts (24th lowest); $160 labor (the highest)
> Avg. annual insurance costs: $1,378 (25th lowest)
> Annual gasoline expenditure per licensed driver: $1,107 (9th highest)
> Avg. price of gasoline as of June 20, 2021: $2.78 per gallon (the lowest)
[in-text-ad-2]
15. New Mexico
> Avg. annual cost of car ownership $2,896
> Avg. cost of a check-engine light repair: $231 parts (21st lowest); $149 labor (24th highest)
> Avg. annual insurance costs: $1,391 (23rd highest)
> Annual gasoline expenditure per licensed driver: $1,125 (7th highest)
> Avg. price of gasoline as of June 20, 2021: $3.09 per gallon (22nd highest)
14. Connecticut
> Avg. annual cost of car ownership $2,914
> Avg. cost of a check-engine light repair: $248 parts (12th highest); $154 labor (10th highest)
> Avg. annual insurance costs: $1,580 (11th highest)
> Annual gasoline expenditure per licensed driver: $932 (17th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.16 per gallon (16th highest)
[in-text-ad]
13. Rhode Island
> Avg. annual cost of car ownership $3,029
> Avg. cost of a check-engine light repair: $250 parts (10th highest); $138 labor (5th lowest)
> Avg. annual insurance costs: $1,801 (6th highest)
> Annual gasoline expenditure per licensed driver: $840 (7th lowest)
> Avg. price of gasoline as of June 20, 2021: $3.04 per gallon (24th lowest)
12. South Dakota
> Avg. annual cost of car ownership $3,035
> Avg. cost of a check-engine light repair: $223 parts (13th lowest); $154 labor (9th highest)
> Avg. annual insurance costs: $1,575 (12th highest)
> Annual gasoline expenditure per licensed driver: $1,083 (12th highest)
> Avg. price of gasoline as of June 20, 2021: $3.09 per gallon (21st highest)
11. Utah
> Avg. annual cost of car ownership $3,097
> Avg. cost of a check-engine light repair: $252 parts (7th highest); $147 labor (21st lowest)
> Avg. annual insurance costs: $1,250 (16th lowest)
> Annual gasoline expenditure per licensed driver: $1,447 (2nd highest)
> Avg. price of gasoline as of June 20, 2021: $3.79 per gallon (5th highest)
[in-text-ad-2]
10. Montana
> Avg. annual cost of car ownership $3,126
> Avg. cost of a check-engine light repair: $234 parts (22nd lowest); $155 labor (6th highest)
> Avg. annual insurance costs: $1,627 (10th highest)
> Annual gasoline expenditure per licensed driver: $1,110 (8th highest)
> Avg. price of gasoline as of June 20, 2021: $3.20 per gallon (13th highest)
9. Colorado
> Avg. annual cost of car ownership $3,139
> Avg. cost of a check-engine light repair: $248 parts (12th highest); $154 labor (10th highest)
> Avg. annual insurance costs: $1,574 (13th highest)
> Annual gasoline expenditure per licensed driver: $1,164 (5th highest)
> Avg. price of gasoline as of June 20, 2021: $3.53 per gallon (8th highest)
[in-text-ad]
8. Georgia
> Avg. annual cost of car ownership $3,161
> Avg. cost of a check-engine light repair: $257 parts (4th highest); $153 labor (13th highest)
> Avg. annual insurance costs: $1,705 (9th highest)
> Annual gasoline expenditure per licensed driver: $1,046 (18th highest)
> Avg. price of gasoline as of June 20, 2021: $2.98 per gallon (14th lowest)
7. Texas
> Avg. annual cost of car ownership $3,193
> Avg. cost of a check-engine light repair: $242 parts (19th highest); $151 labor (17th highest)
> Avg. annual insurance costs: $1,710 (8th highest)
> Annual gasoline expenditure per licensed driver: $1,089 (11th highest)
> Avg. price of gasoline as of June 20, 2021: $2.84 per gallon (4th lowest)
6. Missouri
> Avg. annual cost of car ownership $3,369
> Avg. cost of a check-engine light repair: $224 parts (14th lowest); $151 labor (16th highest)
> Avg. annual insurance costs: $1,895 (5th highest)
> Annual gasoline expenditure per licensed driver: $1,098 (10th highest)
> Avg. price of gasoline as of June 20, 2021: $2.84 per gallon (5th lowest)
[in-text-ad-2]
5. Florida
> Avg. annual cost of car ownership $3,369
> Avg. cost of a check-engine light repair: $246 parts (15th highest); $147 labor (19th lowest)
> Avg. annual insurance costs: $2,082 (3rd highest)
> Annual gasoline expenditure per licensed driver: $894 (16th lowest)
> Avg. price of gasoline as of June 20, 2021: $2.99 per gallon (17th lowest)
4. Michigan
> Avg. annual cost of car ownership $3,471
> Avg. cost of a check-engine light repair: $202 parts (the lowest); $148 labor (25th lowest)
> Avg. annual insurance costs: $2,112 (2nd highest)
> Annual gasoline expenditure per licensed driver: $1,008 (21st highest)
> Avg. price of gasoline as of June 20, 2021: $3.27 per gallon (11th highest)
[in-text-ad]
3. California
> Avg. annual cost of car ownership $3,798
> Avg. cost of a check-engine light repair: $267 parts (the highest); $147 labor (22nd lowest)
> Avg. annual insurance costs: $1,966 (4th highest)
> Annual gasoline expenditure per licensed driver: $1,418 (3rd highest)
> Avg. price of gasoline as of June 20, 2021: $4.32 per gallon (the highest)
2. Wyoming
> Avg. annual cost of car ownership $3,984
> Avg. cost of a check-engine light repair: $229 parts (19th lowest); $154 labor (8th highest)
> Avg. annual insurance costs: $1,768 (7th highest)
> Annual gasoline expenditure per licensed driver: $1,833 (the highest)
> Avg. price of gasoline as of June 20, 2021: $3.45 per gallon (9th highest)
1. Louisiana
> 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 and least expensive states 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.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
