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 Georgia can expect to spend about $3,161 per year on vehicle ownership – the eighth highest 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 Georgia is higher 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 $1,705, 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
