Top And Most Expensive States For Car Purchase And Operation

Purchasing a car is usually an expensive endeavor. Even yet, it is more expensive to acquire and own an automobile in various places in the United States. Most of us would want to determine the car’s value before purchasing it in order to match it with our budget. Aside from paying a single payment to the shop, we must also pay for the automobile registration charge and other fees. However, the total sum that the car owner must pay varies by state in the United States. So, which state has the highest cost of purchasing a car?


The average yearly cost of automobile ownership is roughly US$6,545. The average tax is around $1,000, while motor insurance may cost up to $1,780. You must pay a hefty price for petrol and gas in California. While the cost of auto insurance is exorbitant, you have the right to drive on the highways of California. Visitors must pay the 66.98 cents per gallon gas tax.


When compared to other states in the United States, Michigan drivers must pay the highest insurance prices. Insurance companies are not required to reveal how much profit they make on premiums. Because Michigan is a no-fault state, drivers must get comprehensive medical coverage. Insurance companies look at credit ratings, which is why it’s a concern in the impoverished areas of Flint and Detroit. There are also more reasons why Michigan is one of the most expensive states for vehicle ownership.


Car owners in Nevada must spend around US$6,366 to operate their car. The average insurance premium is around $1,674. The average cost of running the automobile is $1,249 USD. You may have heard that many Americans relocate to Nevada to escape paying hefty taxes. However, the cost of automobile ownership in this state is quite expensive. Drivers must also spend a significant amount for gasoline.


The per capita fuel price is not greater than the national average. However, the most expensive element in Louisiana is motor insurance. The cause for this is a rise in the number of uninsured drivers.


The one-time cost of acquiring the automobile is around $2,027, but the use and yearly ownership expenditures might be approximately $2,817. Idaho drivers must pay a somewhat higher price when purchasing a vehicle. They pay around 6% in automobile sales tax. The one-time expense is US$290 greater than the national average yearly cost. In Idaho, the automobile title transfer charge is $14, and you must additionally pay a fee for a VIN examination. You must deal with an Idaho bill of sale during the title transfer procedure. The greatest news is that insurance costs in this state are less than $1,000 per year.

New Jersey

A year’s worth of car ownership in New Jersey might cost up to $527 more than the national average. Thus, the three-year ownership cost is $2,258 USD. It costs $1,905 to pay the insurance premium. The average cost of auto maintenance is $422 USD.


It is one of the states with high automobile ownership costs. The average cost of purchasing and maintaining a vehicle for three years is $13,000 USD. When compared to the national average, Florida‘s insurance premiums are US$329 more.


In Washington, the expense of owning an automobile is quite expensive. Drivers in this state spend US$1,386 more than the national average to possess a vehicle for three years. The main reason for this is the high sales tax (8.9 per cent). Although the cost of automobile insurance is low, the cost of car gasoline is considerable.

Rhode Island

Drivers in this state must pay a significant fee to drive an automobile. The average cost of auto maintenance is $412, including a 7% sales tax. It is US$1,669 more expensive than the national average.

Which States Have the Highest Car Registration Fees?

When purchasing an automobile, you must spend far more than the vehicle’s sticker price. As a result, while creating a budget for purchasing a car, you must account for monthly payments, down payments, registration fees, and insurance and petrol expenditures. Because these prices vary so greatly between states, purchasing a car in a few states is more economical.

Every automobile requires a license plate, also known as a vehicle registration plate, for identification. That is why a license plate charge is required for this paperwork. One of the legal papers required as proof of ownership is a car title. Title costs are a one-time expense when the owner purchases the vehicle for the first time. The license plate charge, which varies by state, must be paid annually. A variety of factors influence how registration fees are calculated.

In Colorado, for example, the registration price is determined by the weight and age of your car. This charge is calculated in Michigan and other states based on the vehicle’s MSRP. Similarly, registration fees in Utah vary according on the weight of the vehicle. In certain states, registering hybrid and electric vehicles requires an extra fee.

The automobile registration charge in Oregon is the highest, ranging from US$268.50 to US$63650. (for new cars). The two-year renewal fee ranges from US$122 to US$306. New automobile registration in Florida costs US$225. A separate fee is required based on the weight of your vehicle. You can go to Arizona for the lowest registration fee (US$8). The public safety cost, however, will be an extra US$32.

Final Thoughts

You may now quickly compare the expenses of purchasing and owning a car in different states across the United States. However, because the market is dynamic, these prices may fluctuate, so you should verify the most recent pricing rates before purchasing a vehicle.