Key Findings
- The average annual full-coverage insurance premium in the U.S. is $2,433.
- The average driver in the U.S. spends about $1,500 per year on gas.
- Nevada is the most expensive state for car ownership, due to high annual tax rates of 8.25%.
- Alaska is the least expensive state for car ownership because it has low gas consumption and no annual vehicle taxes.
Owning a car isn’t cheap, but it could be cheaper based on where you live. We at the MarketWatch Guides team analyzed fuel price data, tax rates, repair costs and average car insurance premiums to explore the true cost of owning a vehicle in all 50 states. Read on to find out which states are best and worst for budget-minded drivers.
How Much Does It Cost To Own a Car?
The cost of owning a car is a combination of several different costs that vary by state: insurance, fuel, property taxes and average repair costs.
- The average annual full-coverage insurance premium in the U.S. is $2,433, while minimum-liability coverage averages $736 per year.
- As of July 3, 2025, the AAA reports that the average price of a gallon of gas is $3.162. Assuming that you drive 12,416 miles a year, getting 26 miles per gallon, this comes to 478 gallons of gas a year. This brings the annual price of filling up a tank to $1,509.98.
- In addition to insurance and gas, car owners should also factor in their annual property tax, which may include cars, depending on your state’s laws.
- Average car repair and maintenance costs vary according to vehicle type and age more than your location.
- To get a better understanding of the cost of owning a car, we examined all four costs by state. Use the map below to see how costs break down where you live.
Most Expensive States for Car Ownership
The following sections break down the most expensive states for car ownership. Keep in mind that the figures presented are averages, and your specific driver profile and vehicle may result in higher or lower costs.
Nevada
Nevada drivers get a double whammy of lofty property taxes for vehicles and high gas prices. Above-average car insurance premiums also make it pretty expensive to own a car in the Silver State.
| Insurance Premium | $2,889 |
| Taxes | $1,994 |
| Gas | $2,111 |
| Repairs | $398 |
| Total | $7,392 |
- Annual tax for vehicles in Nevada is 8.25%, the highest of any state. Luckily, the tax assessed value of your car will decrease over time and lower your bill further down the road.
- Based on data from AAA and the Federal Highway Administration, Nevada also sees high gas costs at $2,111 per year. Nevada drivers drive 14,461 miles a year, and are estimated to need 556 gallons of gas at $3.80 a tank.
California
Nevada edges out California as the most expensive state for car ownership. This likely comes as a surprise to many, as the cost of living in the Golden State is famously high.
California checks in with some of the highest average gas prices, auto insurance premiums and car repair costs in the country, so it’s a close second in our expensive car ownership rankings.
| Insurance Premium | $2,967 |
| Taxes | $1,752 |
| Gas | $1,956 |
| Repairs | $416 |
| Total | $7,091 |
- California has the fourth-highest insurance premiums at $2,967 per year, and the third-highest repair costs at $416 per year.
- California has the highest gas prices at an average $4.59 per gallon, per our research on data from AAA and the FHA.
- California has a high cost of living, so it makes sense that it is pricey for car owners.
Florida
Insurance premiums are the main culprit in keeping Florida car ownership costs high. Drivers in The Sunshine State pay the second-highest auto insurance rates in the country, with an average annual premium of just over $3,200. Damage from severe weather events and increasing accident rates are two reasons for Florida’s elevated car insurance costs.
| Insurance Premium | $3,229 |
| Taxes | $1,450 |
| Gas | $1,540 |
| Repairs | $396 |
| Total | $6,615 |
Least Expensive States for Car Ownership
States with lower populations tend to also have lower car ownership costs.
Alaska
Drivers in the Last Frontier benefit from having no annual property taxes on vehicles. Although gas prices are generally high in Alaska, residents don’t do as much driving as their mainland counterparts. Combined with below-average car insurance rates, these factors make owning a car in our 49th state pretty manageable.
| Insurance Premium | $1,978 |
| Taxes | $0 |
| Gas | $1,106 |
| Repairs | $387 |
| Total | $3,471 |
- No annual vehicle tax.
- Drivers in Alaska are only expected to drive an average of 7,761 miles per year and consume 299 gallons per year, the least of any state. While they do have a higher-than-average gas price ($3.70 compared to the national average of $3.10), the lower consumption boosts them to the top.
New Hampshire
There’s no legal requirement for car insurance in New Hampshire, and premiums in the state are among the lowest in the U.S. Drivers in the Granite State also don’t have to worry about an annual vehicle tax. Moderate car repair costs also help New Hampshire drivers with their vehicle ownership expenses.
| Insurance Premium | $1,791 |
| Taxes | $0 |
| Gas | $1,336 |
| Repairs | $371 |
| Total | $3,498 |
- No annual vehicle tax.
- Has the seventh-lowest insurance premiums in the U.S.
Montana
Montana’s no annual car tax makes up for the state’s slightly above-average auto insurance rates. Montana drivers also log fewer miles than those in most other states, which means less fuel consumption.
| Insurance Premium | $2,492 |
| Taxes | $0 |
| Gas | $1,217.70 |
| Repairs | $389.84 |
| Total | $4,099.54 |
- No annual vehicle tax, which compensates for the slightly higher than average insurance premiums of $2,492 per year.
- Additionally, Montana drivers only consume 370 gallons of gas a year.
Tips: How To Plan for Car Ownership
Our team put together this list of tips to make the sometimes intimidating process of buying a car a bit easier:
- Set your budget: Your credit score, net pay and recurring expenses are all important things to consider when setting your vehicle budget. If your debt-to-income ratio is greater than 40%, you may want to consider a used car.
- Compare purchase options: Purchasing a car outright has its advantages, including saving on interest and other financing fees. However, draining your savings may not be best for you. If you prefer to secure a loan, be sure to explore all options.
- Buy auto insurance: You’ll need car insurance before you drive off the lot. We’ve made it easy to compare car insurance providers and find your ideal coverage match.
- Register your vehicle: Registration processes differ from state to state, but you typically need to register your vehicle within 30 days of purchase.
Our team asked Robert Dillman from the NEVO Driving Academy about how to budget for car repairs and maintenance. Here’s what he told us:
“Upon purchase, set aside a small portion of each paycheck specifically for vehicle maintenance. Saving for future automotive expenses works exceptionally well if your purchase comes with a warranty. Maintenance costs will stay low while the vehicle is under warranty, providing additional time to bolster your vehicle maintenance savings account. When the warranty expires, you’ll have healthy savings to continue maintaining the vehicle appropriately.”
Full Data
Below, you can see how much residents of each state pay annually on average to own a car.
| State | Average Full-Coverage Premium | Annual Taxes | Gas Cost* | Repair Cost (Labor and Parts) | Total Cost |
|---|---|---|---|---|---|
| Alabama | $2,264 | $483.32 | $1,538.51 | $399.33 | $4,685.16 |
| Alaska | $1,978 | $0.00 | $1,105.94 | $387.05 | $3,470.99 |
| Arizona | $2,503 | $1,353.30 | $1,639.50 | $388.92 | $5,884.72 |
| Arkansas | $2,572 | $1,570.79 | $1,713.02 | $382.61 | $6,238.42 |
| California | $2,967 | $1,752.04 | $1,956.16 | $415.66 | $7,090.86 |
| Colorado | $3,171 | $700.81 | $1,381.07 | $417.14 | $5,670.02 |
| Connecticut | $2,656 | $1,534.54 | $1,316.70 | $418.37 | $5,925.61 |
| Delaware | $2,639 | $0.00 | $1,617.66 | $390.89 | $4,647.55 |
| Florida | $3,229 | $1,449.96 | $1,461.77 | $396.29 | $6,537.02 |
| Georgia | $2,822 | $1,594.96 | $1,657.82 | $407.71 | $6,482.49 |
| Hawaii | $1,652 | $966.64 | $1,992.72 | $381.23 | $4,992.59 |
| Idaho | $1,769 | $1,449.96 | $1,512.97 | $389.05 | $5,120.98 |
| Illinois | $2,060 | $1,510.38 | $1,530.00 | $379.23 | $5,479.61 |
| Indiana | $1,914 | $1,691.62 | $1,578.75 | $364.76 | $5,549.13 |
| Iowa | $2,147 | $1,208.30 | $1,081.24 | $359.96 | $4,796.50 |
| Kansas | $2,478 | $1,812.45 | $1,368.34 | $374.44 | $6,033.23 |
| Kentucky | $2,780 | $1,449.96 | $1,846.97 | $384.76 | $6,461.69 |
| Louisiana | $3,481 | $1,075.39 | $1,233.65 | $388.66 | $6,178.69 |
| Maine | $1,705 | $1,329.13 | $1,648.33 | $349.25 | $5,031.71 |
| Maryland | $2,453 | $1,449.96 | $1,638.15 | $399.07 | $5,940.18 |
| Massachusetts | $2,145 | $1,510.38 | $1,187.43 | $386.20 | $5,229.00 |
| Michigan | $2,918 | $1,449.96 | $1,450.46 | $356.29 | $6,174.71 |
| Minnesota | $2,373 | $1,570.79 | $1,323.56 | $377.68 | $5,645.03 |
| Mississippi | $2,427 | $1,208.30 | $1,620.86 | $394.03 | $5,650.19 |
| Missouri | $2,343 | $1,022.22 | $1,598.89 | $378.85 | $5,342.96 |
| Montana | $2,492 | $0.00 | $1,217.70 | $389.84 | $4,099.54 |
| Nebraska | $2,298 | $1,329.13 | $1,264.99 | $374.53 | $5,266.65 |
| Nevada | $2,889 | $1,993.70 | $2,110.75 | $398.26 | $7,391.70 |
| New Hampshire | $1,791 | $0.00 | $1,335.99 | $370.79 | $3,497.78 |
| New Jersey | $2,837 | $1,602.21 | $1,288.93 | $399.61 | $6,127.74 |
| New Mexico | $2,312 | $966.64 | $1,687.72 | $392.53 | $5,358.89 |
| New York | $2,460 | $966.64 | $1,556.85 | $386.55 | $5,370.04 |
| North Carolina | $2,326 | $724.98 | $1,614.33 | $402.61 | $5,067.92 |
| North Dakota | $2,272 | $1,208.30 | $1,186.91 | $364.62 | $5,031.83 |
| Ohio | $1,687 | $1,389.55 | $1,158.79 | $353.76 | $4,589.09 |
| Oklahoma | $2,782 | $785.40 | $1,511.77 | $379.77 | $5,458.93 |
| Oregon | $2,163 | $0.00 | $1,805.34 | $393.94 | $4,362.28 |
| Pennsylvania | $2,527 | $1,449.96 | $1,434.63 | $384.33 | $5,795.92 |
| Rhode Island | $2,670 | $1,691.62 | $1,296.90 | $386.93 | $6,045.45 |
| South Carolina | $2,497 | $1,208.30 | $1,619.22 | $395.83 | $5,720.35 |
| South Dakota | $2,721 | $966.64 | $1,219.51 | $377.64 | $5,284.79 |
| Tennessee | $2,047 | $1,691.62 | $1,458.74 | $399.11 | $5,596.47 |
| Texas | $2,863 | $1,510.38 | $1,663.96 | $397.53 | $6,434.87 |
| Utah | $2,365 | $1,655.37 | $1,784.63 | $401.65 | $6,206.65 |
| Vermont | $1,624 | $1,449.96 | $1,602.62 | $374.45 | $5,051.03 |
| Virginia | $1,915 | $1,002.89 | $1,490.83 | $401.17 | $4,809.89 |
| Washington | $2,253 | $1,570.79 | $1,777.29 | $392.46 | $5,993.54 |
| West Virginia | $2,417 | $1,449.96 | $1,596.39 | $383.48 | $5,846.83 |
| Wisconsin | $1,957 | $1,208.30 | $1,499.49 | $361.11 | $5,025.90 |
| Wyoming | $1,713 | $1,449.96 | $1,681.47 | $397.79 | $5,242.22 |
Methodology
The MarketWatch Guides team researched the cost of owning a car by state, assuming a 35-year-old driver with a clean driving record and good credit, who drives a 2023 Toyota Camry that has been paid for in full. Average insurance by state was calculated using data from Quadrant, an insurance information service. To calculate annual property tax, we used information from WeekendLandlords and assumed a car value of $24,166, as per Kelley Blue Book. We also assumed a mileage of 26 miles per gallon, based on estimates from FuelEconomy.gov. We used average gas prices from AAA (collected on June 30, 2025) and the average annual miles by state from the Federal Highway Administration to calculate the yearly cost of fueling a car. Repair costs were sourced from CarMD.
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