Most Expensive States to Own a Car (2026)

The 10 most expensive states for car ownership

Six of the 10 most expensive states for car ownership are in the South. High insurance costs show up again and again across the region.

Florida has the highest average annual car insurance premium in the nation, at $1,994. Louisiana ranks a close second, at $1,983. Insurers set rates in part based on a state’s crash history, and Louisiana has a rough one. It ranks among the states with the worst road rage in the country.

Income level doesn’t predict where a state lands on this list.

New Jersey and California have two of the highest median household incomes in the country, yet both rank in the top 10 most expensive for owning a car. But Mississippi and Louisiana have two of the lowest, and they rank here too. Drivers in all four states spend a similar amount in raw dollars, but the burden isn’t the same. New Jersey and California drivers spend about 4% of their income on car ownership, while Mississippi and Louisiana drivers spend closer to 7%.

Take a look at this map to see how every state compares, then read on for a closer look at the 10 priciest states for car owners.

1. Delaware

Delaware holds onto its title as the most expensive state for car ownership. Drivers there spend $5,492 a year, well above the national average.

The state’s average annual gas expense is the highest in the nation, but it’s not because gas costs more there. Delaware’s price per gallon, $4.15, sits close to the national average of $4.09. But drivers there log more miles than anyone else — an average of 22,226 per year per vehicle — and all those trips add up at the pump.

Delaware hasn’t yet rolled out relief for gas-heavy driving costs. But it has widened who pays into road funding. Since Oct. 1, 2025, the state has charged a new registration fee on hybrid and electric cars as they come up for renewal, since those drivers spend less on the gas tax, which funds road maintenance, according to the Delaware Division of Motor Vehicles.

Annual average cost breakdown of car ownership in Delaware:

• Insurance premium: $1,569
• Repair costs: $530
• Gas expenses: $3,393 (highest in the U.S.)
• Total cost: $5,492

2. Mississippi

Mississippi jumped from the fourth to the second most expensive state this year.

Car costs weigh heavier on drivers there than anywhere else in the country. The average Mississippi household earns $59,127 a year, the lowest median income of any state; it spends 7.5% of that on car ownership, the highest share in the nation.

Heavy mileage is pushing up gas costs. Mississippi drivers log about 18,767 miles a year, which is well above the national average of 11,071. All those miles push gas costs into second place nationally. Insurance, by contrast, runs a bit below the national average ($1,395 compared with $1,439).

Annual average cost breakdown of car ownership in Mississippi:

• Insurance premium: $1,395
• Repair costs: $535
• Gas expenses: $2,519 (second highest)
• Total cost: $4,448

3. Florida

No state has higher car insurance costs than the Sunshine State. The average premium there runs $1,994 a year, more than $550 above the national average. It’s largely why the state lands in third place, with a total yearly cost of $4,358. Florida is also home to some of the country’s worst drivers, which insurers likely factor into their pricing.

Rates may be easing, though. Florida’s top five auto insurers are cutting rates by an average of 8% in 2026, building on a 7.4% decrease the year before, according to the Florida Office of Insurance Regulation.

Annual average cost breakdown of car ownership in Florida:

• Insurance premium: $1,994 (highest)
• Repair costs: $538
• Gas expenses: $1,827
• Total cost: $4,358

4. Nevada

Nevada had the biggest jump in ranking of any state in the top 10, moving up five spots from last year.

Gas expenses alone jumped 42% from last year. Both the price at the pump and how much Nevadans are driving went up. The average price per gallon climbed from $3.87 to $4.81, while the average vehicle logs over 11,900 miles (up from about 10,360 the year before). Insurance and repair costs rose sharply, too, by 13% and 36%, respectively.

Annual average cost breakdown of car ownership in Nevada:

• Insurance premium: $1,600 (10th highest)
• Repair costs: $540
• Gas expenses: $2,104 (sixth highest)
• Total cost: $4,244

5. California

California drivers pay more at the pump than any other state. Gas runs $5.65 there, over $1.50 above the national figure. This contributes to California’s total yearly car ownership cost of $4,170, about 15% above average.

Repair costs run high in California, too (the third priciest in the country). Insurance is one area where drivers in the Golden State catch a break. The average premium comes in just under the national figure, at $1,418.

Annual average cost breakdown of car ownership in California:

• Insurance premium: $1,418
• Repair costs: $564 (third highest)
• Gas expenses: $2,188 (third highest)
• Total cost: $4,170

6. New Jersey

New Jersey doesn’t have one runaway cost category dragging it into the top 10. Insurance, repairs and gas all rank among the 10 priciest in the country on their own. Together, they add up to a yearly total of $4,160, about 14% above the national average.

The Garden State’s gas tax, now 49.1 cents a gallon after a 4.2-cent increase on Jan. 1, 2026, is one more cost adding up at the pump.

Annual average cost breakdown of car ownership in New Jersey:

• Insurance premium: $1,693 (seventh highest)
• Repair costs: $542 (eighth highest)
• Gas expenses: $1,925 (ninth highest)
• Total cost: $4,160

7. Georgia

Georgia lands in the top 10 for two different reasons: insurance and repairs. The state has the fourth-highest average insurance premium in the country and the fourth-highest repair costs. Together, they push Georgia’s total annual cost of car ownership to $4,160 a year.

Traffic could be one factor contributing to the Peach State’s repair costs. The Atlanta metro area, where about 57% of the state’s population lives, ranks among the country’s worst for traffic, and stop-and-go congestion tends to wear on a car’s brakes, tires and transmission faster than open-road driving.

Annual average cost breakdown of car ownership in Georgia:

• Insurance premium: $1,746 (fourth highest)
• Repair costs: $553 (fourth highest)
• Gas expenses: $1,861
• Total cost: $4,160

8. Louisiana

Insurance is the main category keeping Louisiana in the top 10 for a second straight year. Repair costs and gas expenses there both come in below the national average. But the state’s $1,983 average insurance premium, the second highest in the country, is enough to push the total ownership cost to $4,136 a year, nearly 14% above the national average.

Relief may be on the way for Louisiana drivers, though — at least from some insurers. State Farm got approval for a 5.9% average rate decrease starting in January 2026, according to the Louisiana Department of Insurance. A handful of other companies have filed for similar decreases over the past year.

Annual average cost breakdown of car ownership in Louisiana:

• Insurance premium: $1,983 (second highest)
• Repair costs: $527
• Gas expenses: $1,626
• Total cost: $4,136

9. Texas

The Lone Star State jumped from 12th last year to ninth place this year. Insurance stands out among car ownership costs: At $1,727, the average premium is fifth highest. All told, Texas drivers pay $3,997 a year, about 10% above average.

Although gas prices in Texas are relatively low, drivers there put more miles on their vehicles than average — about 13,067 per year, nearly 2,000 more than the national figure.

Annual average cost breakdown of car ownership in Texas:

• Insurance premium: $1,727 (fifth highest)
• Repair costs: $539
• Gas expenses: $1,731
• Total cost: $3,997

10. New Mexico

On average, New Mexico drivers log nearly 14,839 miles a year, heavy mileage that pushes gas costs to $2,156 a year (fifth highest nationally).

The state’s roads make all that driving more expensive than it needs to be. The nonprofit TRIP, which researches surface transportation, estimates that poor road conditions cost New Mexico drivers a combined $3.3 billion a year in operating costs, wasted fuel and safety. In February 2026, the governor signed a bill authorizing $1.5 billion in transportation bonds to fund state road projects.

Still, New Mexico’s insurance costs are lower than average, at $1,301 annually.

Annual average cost breakdown of car ownership in New Mexico:

• Insurance premium: $1,301
• Repair costs: $533
• Gas expenses: $2,156 (fifth highest)
• Total cost: $3,990

The cheapest states for car ownership

Here are the 10 cheapest states to own a car:

1. Montana
2. Iowa
3. South Dakota
4. North Dakota
5. New Hampshire
6. Ohio
7. Idaho
8. Vermont
9. Minnesota
10. Pennsylvania

The Treasure State tops this list by a wide margin. Drivers there pay just $2,595 a year on average for insurance, repairs and gas combined. That’s nearly 29% less than the national average of $3,636.

Montana’s ranking is a bit surprising, considering it’s such a large, rural state. You’d expect long drives and high gas bills in a place like this. Instead, it has the lowest average mileage per vehicle in the nation, at 5,606 miles a year.

It’s worth noting that Montana doesn’t charge a state sales tax, so some nonresidents may register their vehicles in Montana even though they primarily drive them in other states. This pattern could help explain the unusually low mileage average.

The annual cost of owning a car in each state

So far, we’ve covered the states at the top and bottom of this list. But what about everywhere in between?

Nationally, every cost category climbed this year. Insurance premiums rose 14.4%, gas expenses rose 23.3%, and repair costs jumped 35.6%.

“The cost to repair your vehicle has increased because the price of replacement parts continues to rise due to increased tariffs, as many of these parts are manufactured outside of the United States,” said Ray Shefska, the co-founder of car-buying advocacy platform CarEdge.

Check out the full data for all 50 states to see how yours compares:

How to save on car ownership costs

Car costs are climbing, but here’s how drivers can save, according to automotive experts:

• Shop around for car insurance. “Get auto insurance quotes at least once a year and/or after a major life change,” suggested Ashley NeSmith, the founder of Ashley the Auto Advocate, a car buying advisory service. Comparing a few quotes regularly is one of the simplest ways to catch savings you might otherwise miss.
• Stay on top of preventive maintenance. “Oil changes, tire rotations and vehicle inspections save money in the long run,” explained Shefska of CarEdge.
• Build small habits that cut your gas bill. Dave Thomas, the director of content marketing at Austin, Texas-based automotive software company CDK Global, recommended shopping around for the best gas prices, grouping errands into fewer trips, using less air conditioning and keeping tires properly inflated.
• Compare new and used prices before you buy. “If the new vehicle is offering rebates or a special annual percentage rate (APR) like 0% or 2.99%, the vehicle could end up costing less than purchasing a couple-year-old vehicle,” NeSmith said.

Methodology

The ConsumerAffairs Research Team determined the most expensive states for car ownership by calculating the average annual cost of three common auto-related expenses: car insurance, repairs and fuel.

The car insurance premium is the combined average premium (liability, collision and comprehensive coverage) in each state for 2023, the most recent year available, from the National Association of Insurance Commissioners. Repair costs reflect 2021 check-engine-light-related repair data in each state from CarMD, adjusted to 2025 dollars using the Bureau of Labor Statistics' consumer price index for motor vehicle maintenance and repair.

To estimate annual gas expenses in each state, we first divided total vehicle miles traveled in 2024 in each state by the number of registered vehicles to find the average miles driven per vehicle. We then divided that figure by the national average fuel economy for new 2024 model-year vehicles (27.2 mpg) to estimate annual fuel consumption. Finally, we multiplied fuel consumption by each state's average gas price (as of Aug. 4, 2026) to calculate yearly gas costs.

Our data sources for gas expenses include the Federal Highway Administration, AAA and the Environmental Protection Agency.

We also collected supplemental data on each state's median household income from the U.S. Census Bureau (2024) to provide context for narrative comparisons. This information did not influence our cost calculations or rankings.

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Questions?

For questions about the data or if you'd like to set up an interview, please contact jrodriguez@consumeraffairs.com.