Summary
In the U.S., owning a car involves significant costs beyond just purchasing it. These hidden costs include insurance, gas, maintenance, and state taxes, which vary by state and have risen recently. The most expensive states for car ownership are Florida, Nevada, and Louisiana, while the cheapest are New Hampshire, Washington, and Alaska.
Key Facts
- Most U.S. households (91.7%) own at least one car, with 278.9 million vehicles registered in 2022.
- The average hidden cost of owning a car is $6,894 per year, including insurance, gas, and maintenance.
- Florida is the most expensive state for car ownership at $8,483 per year, mainly due to high insurance costs.
- Nevada and Louisiana follow, with annual costs of $8,342 and $8,254, respectively, largely driven by insurance rates.
- New Hampshire is the least expensive state to own a car, with costs averaging $4,472 annually.
- Nationwide, insurance is the largest ownership cost, averaging $2,679 per year.
- The average U.S. driver spends around $1,650 on gas each year, with Wyoming having the highest gas costs due to high mileage.
- Insurance costs can be heavily influenced by factors like driving history, vehicle type, inflation, and extreme weather.
