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 â 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
