Top and Most Expensive States to Buy and Use a Car

Top and Most Expensive States to Buy and Use a Car

Buying a car is always a costly affair. Still, it is more expensive to buy and own a car in some states of
the United States. When buying this asset, most of us want to calculate the value of the car to match our budget. In addition to paying a lump sum to the retailer, it is also essential that we pay, among other things, the registration fee of the car. However, the total amount to be paid by the car owner differs in each state in the US. So, what is the most expensive state to buy a car?


The average annual cost of ownership for car owners can be about US$6,545. The average tax is about US$1,000, while auto insurance premiums can cost US$1,780. In California, you have to pay a high amount for fuel and gas. Although the price of car insurance is high, you have the privilege of driving the car on the roads of the Golden State. Visitors must pay gas tax, which is 66.98 cents per gallon.


Michigan car owners have to pay the highest insurance premiums compared to other states in the US. Insurance agencies are not required to disclose the amount of profit they make from premiums. Because Michigan is a debt-free state, drivers must purchase insurance with significant medical coverage.

Insurance agencies pay attention to credit scores, which is why it becomes a problem for the poverty-stricken regions of Flint and Detroit. There are several other reasons why Michigan is one of the most expensive states to own a car.


Nevada car owners are required to pay approximately US$6,366 to drive the vehicle. The average insurance cost can be about US$1,674. The standard fuel cost for using the car is US$1,249. You may have heard of several Americans moving to Nevada to avoid high taxes. However, the cost of car ownership in this state is very high. Drivers also pay a significant amount for gasoline.


The price of gasoline per capita is no higher than the typical cost in other states. But the most expensive factor in Louisiana is auto insurance. The reason behind this is that there is an increasing number of uninsured drivers.


The one-time cost of purchasing the car is approximately US$2,027 while the running costs and annual cost of ownership can be approximately US$2,817. Idaho drivers must pay a slightly higher amount when purchasing the vehicle. They pay about 6 percent car tax. The one-time cost is US$290 higher than the average annual cost in the country. The Idaho car title transfer fee is US$14, and you must also pay a fee for a VIN inspection. During the title transfer process, you need to deal with: Idaho Sales Invoice. The best fact, however, is that insurance costs in this state are less than US$1,000 annually.

New Jersey

Owning a vehicle for a year in New Jersey can be US$527 more than the national average. Thus, the cost of ownership for three years is US$2,258. The cost of paying the insurance premium is US$1,905. The average vehicle maintenance cost is approximately US$422.


It is one of the states where the cost of owning a car is high. The average cost of buying and owning a vehicle over three years is US$13,000. Compared to the national average, Florida insurance premium costs are US$329 higher.


The cost of car ownership is very high in Washington. Drivers living in this state pay US$1,386 more than the average amount in the nation to own a vehicle for three years. The main reason for this is the expensive sales tax (8.9 percent). While the auto insurance premium is affordable, the price for auto fuel is high.

Rhode Island

Drivers in this state have to pay a high amount for driving cars. The average maintenance cost of a car is $412, while the sales tax is 7 percent. Compared to the national average cost, these are US$1,669 higher.

What are the most expensive states to register a car?

When buying a car, you have to pay much more than the price tag attached to the vehicle. So when budgeting for a car purchase, don’t overlook monthly payments, down payments, registration fees, and insurance gas costs. Since these costs vary significantly between states, it is cheaper to buy cars in a few states.

A license plate, also known as license plate, is necessary for every car for identification. That is why you have to pay registration fees for this documentation. A car title is one of the legal documents you need as proof of ownership. Title rights include a one-time investment when the owner purchases the car for the first time. You have to pay the license plate fee annually, which is different in every state. The way registration costs are assessed depends on a number of factors.

For example, the registration fee in Colorado is based on the weight and age of your vehicle. Michigan and other states calculate this fee according to the vehicle’s suggested retail price. Similarly, registration fees in Utah vary with the weight of the car. Some states require you to pay an additional fee to register hybrid and electric cars.

The registration fee is the highest in Oregonranging from US$268.50 to US$636.50 (for new cars). The two-year renewal fee is US$122 to US$306. Florida charges US$225 for new vehicle registration. Depending on the weight of your car, you have to pay a separate amount. To enjoy the lowest registration fee (US$8), you can go to Arizona. However, an additional US$32 will be paid as a public safety fee.

Final Thoughts

You can now easily compare the cost of buying and owning a car in different states in the US. But these costs can vary because the market is dynamic, which is why you should check the most recent price rates before buying a vehicle.

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