Special Report

This is How Much It Costs to Drive in Kentucky Compared to Other States

Samuel Stebbins

Published: August 25, 2021 7:00 am

Last Updated: August 31, 2021 1:35 pm

Car prices 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 sticker price.

These costs are not uniform across the country, however, and in some states, motorists can expect to spend thousands more per year than in others.

Between insurance, fuel, and maintenance and repairs, the typical motorist in Kentucky can expect to spend about $2,716 per year on vehicle ownership — the 25th lowest annual cost estimate among states. Nationwide, the average cost is about $2,807.

Fuel spending is one of the largest expenses vehicle owners incur. While fuel spending is subject to a range of factors — including the local price of gas, vehicle fuel efficiency, and motorist driving patterns — on a per capita basis, spending on gasoline in Kentucky is in line with the national average. Total annual fuel spending in the state comes out to $1,006 per licensed driver, compared to the national per driver expenditure of $991 per year.

Estimated annual driving costs at the state level were calculated based on the average cost of insurance, gasoline, and repair when the check engine light comes on. Data on the average cost of repair, including parts and labor, came from automobile software developer CarMD. 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 U.S. 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; 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.

Due to incomplete data, Alaska was excluded from analysis.