8 States with Sky-High Car Costs (And 8 That Are Kind to Your Wallet)

Owning a car is a significant financial commitment, but the cost can vary dramatically depending on where you live. From insurance premiums and fuel prices to maintenance fees and taxes, several factors contribute to the overall expense of car ownership.

While some states offer a more affordable driving experience, others can strain your wallet. Today, we’ll explore the 10 most expensive and 10 most affordable states for car owners, providing insights into what makes each state stand out.

1. California

California’s bustling freeways are infamous not just for traffic but for costs. Drivers face fuel prices averaging $4.66 per gallon. Insurance premiums and high registration fees further burden wallets.

The combination of taxes and urban congestion makes California a challenging place for car owners. The Golden State indeed comes at a golden price for vehicle enthusiasts.

2. Nevada

Nevada’s arid landscapes hide hefty car expenses. High insurance costs, averaging $3,439 annually, are a significant factor. Add in elevated fuel prices and maintenance, and Nevada’s total car ownership expenses soar above the national average.

For those cruising past the bright lights of Vegas, the price of driving is steep.

3. Louisiana

In Louisiana, the cost of the bayous extends to car ownership. Insurance premiums here can reach $3,998 annually. With many uninsured drivers and frequent claims, costs are driven up.

Despite its Southern charm, driving in Louisiana comes with its own set of financial challenges for residents.

4. Florida

Florida’s sunlit roads hide the shadow of steep insurance premiums. Averaging $4,326 per year, these costs are influenced by a high rate of uninsured motorists and frequent natural disasters.

While the state offers beautiful drives, the expense of being on the road is considerable for its residents.

5. Georgia

The Peach State presents a paradox of beauty and expense. Georgia leads in hidden car costs, averaging $8,249 annually. Long commutes and high maintenance expenses add to the burden.

While Georgia offers picturesque drives, the financial strain of car ownership is a reality for many residents.

6. Alaska

Alaska’s remote beauty comes with a cost. Despite no state sales tax, high fuel and maintenance costs burden car owners. The state’s challenging terrain and climate contribute to these expenses.

For those adventuring in Alaska, the financial aspect of car ownership is as vast as its landscapes.

7. New York

New York’s dynamic streets come with dynamic costs. Drivers pay the highest insurance premiums in the nation, averaging $4,769 annually. Urban congestion and frequent accidents elevate expenses.

While New York offers unparalleled cityscapes, the financial demands of car ownership are significant for its residents.

8. Hawaii

Hawaii’s paradise comes at a price for drivers. Isolated location results in fuel prices averaging $4.69 per gallon, combined with elevated insurance premiums.

Despite the idyllic landscapes, the financial burden of car ownership is a part of island life. The Aloha State’s beauty requires a substantial investment.

9. New Hampshire

New Hampshire offers a budget-friendly driving experience. With the lowest hidden car ownership costs, averaging $4,299 annually, its absence of sales tax and low insurance premiums contribute to affordability.

The scenic roads of New Hampshire are a delight for drivers who appreciate both beauty and savings.

10. Maine

Maine’s coastal charm extends to its affordability for car owners. With the lowest average car insurance costs at $1,243 annually, combined with low sales tax and maintenance expenses, it ranks among the most affordable states.

Maine’s serene drives are a testament to budget-friendly car ownership in a picturesque setting.

11. Ohio

Ohio’s competitive insurance market brings relief to drivers. With low premiums averaging $1,373 annually, and affordable fuel and maintenance costs, it appeals to car owners.

Ohio’s roads offer the promise of economical driving, enhancing the Buckeye State’s reputation as a haven for budget-conscious motorists.

12. Wisconsin

The state’s serene landscapes offer more than just beauty. Low insurance premiums and fuel costs make it one of the least expensive states for car ownership, with average costs around $5,207.

For those exploring Wisconsin’s scenic roads, the financial aspect complements the state’s natural charm.

13. Iowa

Iowa’s wide-open roads come with a financial perk. Low insurance and fuel costs contribute to its affordability for car owners, with average annual costs around $5,291.

The state’s rural charm and budget-friendly expenses make Iowa an appealing destination for drivers looking for both scenery and savings.

14. Indiana

Indiana’s expansive highways are matched by its affordable car costs. Low insurance premiums and maintenance expenses make it a budget-friendly choice, supported by the state’s infrastructure and competitive market.

The state’s financial appeal to car owners is as expansive as its famous cornfields.

15. South Dakota

Wide prairies offer economic relief for drivers. With low taxes and affordable insurance premiums, it stands as an economical choice for car owners.

The state’s vast landscapes and low car costs create an inviting combination for those seeking both adventure and savings.

16. Missouri

Finally, Missouri’s winding roads come with financial benefits. Offering low insurance premiums and fuel costs, the state’s average annual car ownership cost stays below the national average.

Missouri’s scenic routes offer more than just beauty; they present a pocket-friendly driving experience for residents and visitors alike.