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 New York can expect to spend about $2,270 per year on vehicle ownership — the seventh lowest annual cost estimate among states. Nationwide, the average cost is about $2,807.

One of the largest drivers of vehicle ownership expenses is insurance, and just as the overall cost of ownership in New York is lower than the national average, so too are insurance costs. The average annual insurance payment for a single, 40-year old male with a clean record and good credit in the state is $1,163, compared to the national average of $1,428.

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.

 

Rank	State	Avg. annual cost of car ownership ($)	Avg. gas price as of June 20, 2021 ($ per gal.)	Avg. annual insurance costs ($)	Annual fuel expenditure per licensed driver ($)
1	Louisiana	4,123	2.82	2,839	892
2	Wyoming	3,984	3.45	1,768	1,833
3	California	3,798	4.32	1,966	1,418
4	Michigan	3,471	3.27	2,112	1,008
5	Florida	3,369	2.99	2,082	894
6	Missouri	3,369	2.84	1,895	1,098
7	Texas	3,193	2.84	1,710	1,089
8	Georgia	3,161	2.98	1,705	1,046
9	Colorado	3,139	3.53	1,574	1,164
10	Montana	3,126	3.20	1,627	1,110
11	Utah	3,097	3.79	1,250	1,447
12	South Dakota	3,035	3.09	1,575	1,083
13	Rhode Island	3,029	3.04	1,801	840
14	Connecticut	2,914	3.16	1,580	932
15	New Mexico	2,896	3.09	1,391	1,125
16	Mississippi	2,881	2.78	1,378	1,107
17	Maryland	2,853	3.04	1,410	1,044
18	Nevada	2,846	3.89	1,380	1,070
19	Minnesota	2,827	3.00	1,407	1,049
20	Arkansas	2,822	2.86	1,462	978
21	West Virginia	2,812	3.05	1,299	1,136
22	Oklahoma	2,766	2.87	1,393	994
23	North Dakota	2,765	3.08	1,234	1,174
24	South Carolina	2,743	2.92	1,409	941
25	Kentucky	2,716	2.93	1,321	1,006
26	Washington	2,709	3.84	1,298	1,018
27	Nebraska	2,709	3.00	1,383	962
28	Oregon	2,693	3.70	1,229	1,070
29	Kansas	2,686	2.94	1,454	860
30	New Jersey	2,682	3.18	1,319	960
31	Delaware	2,679	3.00	1,443	846
32	Alabama	2,649	2.84	1,358	893
33	Massachusetts	2,644	3.03	1,314	950
34	North Carolina	2,605	2.90	1,326	876
35	Tennessee	2,585	2.88	1,206	980
36	Arizona	2,575	3.13	1,417	772
37	Hawaii	2,547	4.08	1,254	890
38	Illinois	2,532	3.40	1,205	955
39	Virginia	2,492	2.98	1,033	1,056
40	Idaho	2,453	3.67	985	1,081
41	Iowa	2,386	2.99	1,032	997
42	Indiana	2,370	3.14	1,189	823
43	New York	2,270	3.20	1,163	731
44	Wisconsin	2,253	3.02	938	965
45	Pennsylvania	2,248	3.26	1,028	841
46	Ohio	2,229	3.10	992	888
47	Vermont	2,133	3.07	1,151	640
48	New Hampshire	1,997	2.99	885	747
49	Maine	1,960	3.12	858	745

 

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