America’s Most Expensive Places to Own A Car

One of the costliest expenses associated with owning a car in most states is auto insurance. While each state has its own auto insurance liability limit laws, some are much more expensive than others. Not only this, but where you live within any given state can affect your auto insurance premiums tremendously. For example, at $1,164, the District of Columbia currently has the highest average expenditure for auto insurance in the country, but with an average annual auto premium of $5,162 for liability, collision, and comprehensive coverage, the city of Detroit is the most expensive city in the nation for auto insurance.

While auto insurance is one the most expensive aspects of owning a car, factors such as maintenance, state taxes, fuel, and even depreciation, also affect just how much or how little it will cost to own and operate a car in any given state or city. Maintenance costs vary greatly from state to state as well as taxes, so a person living in Hawaii ($3,705) may spend several hundred dollars less in maintenance fees than someone living in California ($4,335). Taxes in fees can total several thousand dollars more in places such as Nevada ($4,036) than in places such as Alaska ($538).

If we were to look at insurance costs alone or average annual auto insurance premium, the five most expensive cities to own a car are:

1.    Detroit, MI ($5,162)
2.    Philadelphia, PA ($3,779)
3.    Newark, NJ ($3,381)
4.    Los Angeles, CA ($3,027)
5.    Hempstead, NY ($2,764)

When we add taxes and fees, depreciation, finance and interest, fuel costs, maintenance, and repairs, the list looks a little different. Please note that the most reliable figures are determined using data collected at the state level. With the exception of the top five or so most expensive cities for auto insurance, data for most cities is scarce. The vast majority of detailed studies have only been done at the state level.

The top ten worst states (including Hawaii) for owning a car based on the criteria above include:

1.    Hawaii (True Cost to Own a Car $59,457)
2.    California ($59,347)
3.    Alaska ($58,052)
4.    Nevada ($57,763)
5.    West Virginia ($57,532)
6.    Connecticut ($57,303)
7.    Louisiana ($56,850)
8.    Washington ($56,736)
9.    New York ($56,147)
10.    Arizona ($56,080)

Continue reading for a breakdown of costs by state (top ten).**

1. Hawaii
Depreciation: $19,152
Finance & Interest: $6,237
Fuel Costs: $14,833
Insurance: $12,744
Maintenance: $3,705
Repairs: $939
Taxes & Fees: $1,847

True Cost to Own Total: $59,457

2. California
Depreciation: $18,194
Finance & Interest: $6,467
Fuel Costs: $14,280
Insurance: $11,670
Maintenance: $4,335
Repairs: $1,120
Taxes & Fees: $3,282

True Cost to Own Total: $59,347

3. Alaska
Depreciation: $19,143
Finance & Interest: $5,966
Fuel Costs: $13,846
Insurance: $13,384
Maintenance: $4,097
Repairs: $1,078
Taxes & Fees: $538

True Cost to Own Total: $58,052

4. Nevada
Depreciation: $18,326
Finance & Interest: $6,110
Fuel Costs: $13,406
Insurance: $10,616
Maintenance: $4,191
Repairs: $1,078
Taxes & Fees: $4,036

True Cost to Own Total: $57,763

5. West Virginia
Depreciation: $18,185
Finance & Interest: $5,627
Fuel Costs: $13,799
Insurance: $13,031
Maintenance: $3,849
Repairs: $973
Taxes & Fees: $2,068

True Cost to Own Total: $57,532

6. Connecticut
Depreciation: $18,208
Finance & Interest: $5,609
Fuel Costs: $14,090
Insurance: $12,057
Maintenance: $4,096
Repairs: $1,053
Taxes & Fees: $2,190

True Cost to Own Total: $57,303

7. Louisiana
Depreciation: $18,049
Finance & Interest: $5,714
Fuel Costs: $12,936
Insurance: $12,874
Maintenance: $3,657
Repairs: $905
Taxes & Fees: $2,715

True Cost to Own Total: $56,850

8. Washington
Depreciation: $18,185
Finance & Interest: $5,748
Fuel Costs: $13,335
Insurance: $12,293
Maintenance: $3,845
Repairs: $973
Taxes & Fees: $2,357

True Cost to Own Total: $56,736

9. New York
Depreciation: $18,201
Finance & Interest: $5,869
Fuel Costs: $14,183
Insurance: $10,543
Maintenance: $3,628
Repairs: $897
Taxes & Fees: $2,826

True Cost to Own Total: $56,147

10. Arizona
Depreciation: $18,229
Finance & Interest: $6,308
Fuel Costs: $12,832
Insurance: $9,275
Maintenance: $4,143
Repairs: $1,061
Taxes & Fees: $4,232

True Cost to Own Total: $56,080

Sources

**Forbes: http://www.forbes.com
Insurance Information Institute: http://www.iii.org/