12 Of The Most Expensive States To Own A Car In America

It makes sense that buying a car is the most expensive up-front cost when it's time to drive. Yet car ownership involves more than the sticker price, plus all those taxes and registration fees. From the cost to get your first driver's license (or renew it every few years) to how much you'll pay to keep your car on the road with registration and insurance, the expenses quickly add up.

Depending on where you live, vehicle ownership comes with a list of additional expenses on monthly to yearly to every few years. You'll need to register your vehicle and, in many states, have it inspected regularly (some states don't require vehicle inspections, however). You'll also need to pay for insurance and gas all year long, which generally takes the largest chunk of change.

While you can try to get cheaper insurance anywhere you live, and look out for low gas prices as you travel around town, keeping car ownership costs to a minimum might mean living in particular states. Or, rather, not living in the most expensive states to own a car in America. Based on average car insurance, gas, registration, and driver's license costs, we've come up with a list of the most expensive states to own a car in the U.S. right now — states where it costs more than $3,700 per year just to drive one. Stay tuned after the list for more on our methodology.

The least expensive state on our list, Oregon is still one of the most expensive states to own a car in America. The total yearly cost of car ownership starts at around $3,700, and with so many other states costing far less, Oregon might be a no-go if you're relocating with a car. The cost of living isn't terribly high, but if you want to get a car, you'll immediately face some very high fees.

To get a driver's license in Oregon, you'll pay $60. While Oregon doesn't have a driver's license point system, you could lose your license if you commit too many violations, so that's another possible issue to contend with. Then, registration will cost about $137. Finally, insurance could add up to $1,281 per year.

Given that gas prices in Oregon hover just under $4 per gallon on average, gas will cost you about $2,224 per year, if you drive the typical number of miles per year in a vehicle with average gas mileage. All together, owning and operating a car is a hefty expense, so much so that you might want to look at a state that's not on this list if you're planning a move.

With the fourth most expensive cost of living index in the country, Washington D.C. is not a car-lover's dream. Fees are high across the board, with a driver's license at $89 and registration at $114, but it only gets worse from there. Traffic might be a headache, and finding parking could be a chore, but the costs are probably the worst part. Insurance costs, on average, $1,727 in D.C., so before you get on the road, you'll be paying a pretty penny. Washington D.C. is also famous for expensive parking; expect to pay around $225 per month, if you can even find a spot in the first place.

When it comes to gas prices, an average of $3.19 makes D.C. one of the less expensive places to fuel up, but it will amount to $1,798 per year. You'll also want to watch out for red light camera systems in Washington D.C., as those can add even more expenses to your driving bill. In total, it could cost you around $3,730 per year to own and operate a car in D.C., even before you run a red light or pay for parking. Not to mention, idling in traffic could burn more gas than getting from Point A to Point B.

Drivers in Michigan buy the most vehicles from American brands, but that doesn't mean they're saving money. The cost of living is about average in Michigan, driver's licenses are only $25, and registration is based on vehicle weight, not a flat fee. Yet insurance adds up, costing around $1,920 per year. That's one of the highest rates among the most expensive states to own a car, and things aren't looking good for Michigan drivers overall.

Add gas prices of around $3.22 per gallon to that, and you're looking at $1,812-plus on gas alone per year. Altogether, Michigan drivers could be paying $3,760 or more per year to drive in the state. Michigan doesn't have required emissions testing or fees, so that's one perk, but you may run into other expenses that not all states have.

For example, Michigan gets the highest snowfall out of any state on our list, with around 60 inches per year. That means salt and sand on the roads, which can corrode vehicles, according to the Environmental Protection Agency. It's hard to predict all the car ownership costs you might face in Michigan (or any state), but with insurance and gas costing so much already, your budget better be ready.

Another unassuming state with a lower cost of living, Kentucky might sound idyllic for your budget — that is, until it comes to car ownership. Sure, you can obtain a driver's license for around $30 in the state, and registration is said to average an impressively low $21 per year. However, Kentucky's insurance prices are exceedingly expensive, with rates over $2,100 on average. It might be due to the relatively high vehicle mortality rate; Kentucky's was the sixth-highest in 2022. Accidents are, in general, expensive, after all.

Kentucky does have a few things going for it, like the fact that it's home to the largest Toyota factory in the world. That's unlikely to get you a good deal on a new car, however. Gas prices aren't terrible in Kentucky, at about $2.89 per gallon state-wide, but after you've insured your vehicle, you might be counting pennies to fill the tank. 

All told, gas for a typical vehicle with average mileage per year could add up to $1,630 per year. Combined with insurance costs, Kentucky car owners are looking at about $3,780 per year just to be on the road. Considering the costs and relative risk of driving in Kentucky, would-be vehicle owners might want to think twice.

Given that Hawaii has the second-highest gas prices in the country (between California and Washington) at $4.51 per gallon on average, it's probably not shocking to find out that other aspects of owning a car there are also financially frustrating. In addition to high unleaded fuel prices, Hawaii also has the highest diesel costs of any state. Other fees are surprisingly low, with a driver's license costing $20 and registration averaging about $12.

That's not to say car ownership is necessarily encouraged, however. First off, Hawaii has the absolute highest cost of living of any state in the country, which is one well-known drawback of living outside the contiguous U.S. Hawaii also has some of the lowest speed limits in America, so if you had dreams of letting it rip on the highway, think again. There's also the fact that inter-island travel typically requires a flight rather than an hours-long car ride. 

Another potential pitfall to owning a car in Hawaii is the cost of insurance. Statewide, the average is $1,241 per year, which is one of the lowest costs among the most expensive states to own a car. Altogether, gas, a license, registration, and insurance could cost you over $3,810 in Hawaii — though you won't be paying extra for emissions testing there.

Washington (along with California and Oregon) has some of the curviest roads in America, and it's an excellent place to take a road trip. However, a higher-than-average cost of living means Washington isn't the most affordable place to live to begin with, and the inflated prices seem to start with basic motor vehicle fees. A driver's license costs $89 in Washington, while registration is an average of about $90 — and parking in Seattle, if you need it, could cost $250 per month. 

The bad news doesn't stop there for car owners in Washington. Insurance costs may be lower in the state than in many others, but high gas prices bring the average higher than you might anticipate. Insurance in Washington is $1,285 per year, on average, which isn't bad compared to other states on our list.

It's the gas prices that really make living and driving in Washington less than ideal. At an average of $4.31 per gallon, gasoline in Washington is the third most expensive in the entire country, after California and Hawaii. In a year of driving the average mileage in a decently-equipped vehicle with average MPG, you might pay around $2,430 in gas. That brings the total expense of car ownership in Washington to around $3,895 per year, sans parking — unless you decide to spring for an EV.

With a lower-than-average cost of living at 88.7 on the index, Arkansas may sound like an affordable place to settle down, but folks who want to own a car and live in the state are looking at high expenses. Some areas of Arkansas may be walkable for those who want to skip owning a car, if you want to drive, get your wallet ready.

A driver's license in Arkansas costs around $40, and registration can run as low as $24, which doesn't sound bad up-front. You also won't have emissions testing fees in Arkansas; the state has no mandated emissions or safety test requirements for vehicles. Again, higher-than-average insurance and gas costs ruin the state's financial picture. Insurance costs an average of about $1,814 per year, one of the most expensive price tags on our list.

Combined with gas prices, car ownership gets expensive fast in Arkansas. You can expect to pay more than $2,020 per year for gas if you drive about the average number of miles per year as other Americans. Arkansas also has weird driving laws that might make driving less fun than in other places. Of course, the total yearly cost of $3,900-plus also puts a damper on owning and driving a car in the state.

Though Delaware has an about-average cost of living, it lacks the state tax most other U.S. states charge. Delaware also skips estate and inheritance taxes, which could mean more money to put toward vehicle expenses. You also won't pay for biennial vehicle inspections, but that doesn't mean everything else is affordable.

Though getting a driver's license (about $42) and paying registration ($33 on average) won't set you back much, insurance expenses strike again. High insurance costs make Delaware one of the most expensive states to own a car in America. Delaware has some dangerous roads, which could explain why car insurance is pricey there. Only a handful of states have average vehicle insurance prices over $2,000, and unfortunately, Delaware is one of them. On average, car insurance in Delaware costs about $2,230 per year.

While gas prices in the state aren't the worst in the nation, an average of slightly more than $3 per gallon doesn't bode well for your total car ownership expenses. $3 per gallon means you'll easily pay $1,700 or more per year, if you rack up the average yearly mileage in the U.S. Altogether, car ownership in Delaware could run you upwards of $4,020 per year.

With relatively high insurance and per-gallon gas costs, Nevada is another of the most expensive states to own a car in America. While the cost of living in Nevada is just above average, some expenses are far higher than others. Paying for a driver's license costs just over $40, and registration fees average around $35, which, in the scheme of things, isn't bad. Nevada also mandates annual emissions testing, but only in specific counties and metro areas like Las Vegas and Reno.

Yet on average, insurance costs in Nevada come out to over $1,900 per year. Nevada is also one of the most expensive states to insure a Tesla, but you might win out not using gas. Again, while insurance fees are not the highest we've seen for a state, the fact that gas prices are higher raises the total.

At just under $4 per gallon, gas in Nevada is pricey, and in a year of driving the average mileage with an average-MPG car, you could easily spend around $2,240. For those who live in more rural areas, you might need to budget more for gas. Either way, you're looking at a total car ownership cost of around $4,230 in Nevada.

Even the cheapest car insurance company might be expensive in Louisiana; this state has the highest insurance costs of any state in the country. It might not be a coincidence that Louisiana has the third-highest death-by-vehicle-accident rate in the country. Insurance costs, on average, are $2,734 each year, so despite relatively low vehicle ownership expenses in other areas, Louisiana is one of the priciest.

With a lower cost of living than many other U.S. states, Louisiana can be a relatively affordable place to live. A driver's license will cost you around $30, with vehicle registration averaging around $50, which won't burn a hole in your pocket up-front. Even the yearly emissions testing, while an annoyance, only costs $18. When it comes to gas prices, around $2.72 per gallon sounds great. The only problem is that combined with the exorbitantly high insurance rate averages, Louisiana's gas prices don't help much.

All told, you can expect to pay around $4,370 each year for vehicle-related expenses in Louisiana, from insurance to gas to registration and licensing. Your best bet, if you can't move states, is to pick a vehicle that's cheaper to insure. Even then, many other states offer lower costs — though none of the rest on this list fall into that group.

Florida is widely considered one of the best retirement destinations in the country, but that doesn't mean everything is affordable for seniors (or anyone else). Florida's cost of living is higher than average, and owning a car will cost you more, too. To start off, earning a driver's license will cost you almost $50 as it's one of few states with fees over $40. Average insurance costs there are also some of the highest in the country. In Florida, insurance could run you about $2,550 each year, and there will also be registration fees on your vehicle. Florida even has a law that could cost you your car, if you speed excessively. Sticking to the speed limit won't help you avoid regular car ownership expenses, though.

While Florida's registration is lower than average, it has no yearly emissions testing, and gas prices aren't the worst in the nation, insurance tips the scale toward making it a very expensive state in which to own a car. While average gas prices hover just over $3 per gallon, that adds up to over $1,750 in expenses in 12 months. Combined, insurance, driver's license, registration, and gas costs average about $4,379 per year. 

As one of the most expensive states to live in, it should be no surprise that California is also arguably the most expensive one to own a car in. California has the third-highest cost of living of any U.S. state, and car insurance in California is known for being expensive, too. Car insurance costs an average of $1,782 per year in the state, which doesn't lead the way when it comes to the absolute highest insurance prices, but it's nowhere near the lowest.

Where California really gets drivers is the gas. While the state's driver's license fees come in under $40 and registration averages about $64, the state has the most expensive gas prices of anywhere in the country. When a single gallon of gas costs — on average — nearly $5, car ownership can easily add up to over $2,770 per year, plus costs for any required smog inspections. That is, if your car gets average fuel economy and you travel around 13,476 miles per year (the average in the U.S.). 

All told, Californians can expect to spend an average of around $4,650 per year to keep their cars on the road — and that's not considering regular maintenance like oil changes and new tires, or any fixes. Plus, if you live in a city like San Francisco or San Diego, congratulations — you'll be paying some of the highest parking costs in the country.

We determined the most expensive states to own a car in America by determining which states had the most yearly costs of vehicle ownership. Our factors included average car insurance costs, gasoline expenses based on average mileage, miles per gallon, and gas costs, driver's license fees, and yearly registration and emissions testing fees (the latter as applicable; not all states require emissions testing).

Each state has an average yearly cost for insurance, registration, and licensing, and we determined gas costs by multiplying each state's per-gallon average cost by the average miles per year (13,476 miles, per the U.S. Department of Transportation's Federal Highway Administration) divided by the average fuel economy for a car in the U.S. (24.4 MPG per the U.S. Department of Energy's Alternative Fuels Data Center).

Some of the most expensive states to own a car are also places where parking is exceedingly expensive. While it's difficult to calculate an average parking cost per state, California, Washington, and Washington D.C. all had cities where parking costs average more than $200 per month.