How Much It Costs to Own a Car in 2022: A State-by-State Breakdown

Cars are Americans’ preferred means of transportation, but they don’t come cheap. Considering insurance, tax, fuel, and maintenance costs, here’s how much drivers in every state are paying for their vehicles.

One of the biggest stories of the summer is how much more expensive everyday goods and services are becoming. Inflation hit 8.5% in July 2022, meaning that Americans are spending 8.5% more to fulfill the same daily needs than they were just one year ago.^[1] Food and energy costs are rising the fastest of all.

As a part of this trend, both new and used cars have grown significantly more expensive in recent years, due in large part to increased demand and supply chain disruptions. The average price of a new car hit a record $48,182 in July 2022, up 11.9% year over year.^[2] And used cars are selling for an average of $33,341 — 43% more than historical depreciation would suggest.^[3]

As these astronomical sticker prices are making the headlines, however, Americans are spending plenty just to keep their cars on the road, too. Insurance costs are up nearly 13%,^[4] and gas prices have risen 79% since 2020.^[5][6] Add in annual vehicle property taxes and maintenance costs, and the average American is spending nearly $5,000 per year to keep their ride running in 2022.

Of course, with insurance premiums, tax rates, and gas prices so variable across the country, some drivers are paying even more, while others are saving thousands. In the interest of informing American drivers on how much they can expect to spend on their vehicle this year, the data science team at Insurify, a platform to compare car insurance quotes online, calculated how much it costs to own a car in every state in 2022.

Insights

• National averages. Across the U.S., the average driver is spending $4,960 to operate their vehicle in 2022. Many factors contribute to this overall expense, including the average cost of car insurance, which is $1,705 per year in 2022. Across all states, the average effective vehicle property tax rate is 0.93%, amounting to $247 in annual taxes for drivers owning an automobile worth approximately $25,000. A gallon of regular gasoline costs $3.88 in August 2022, and the average American motorist drives 14,249 miles per year, 70% of which is in urban areas. This means that drivers who own a Honda Accord — the most popular car in America — spend an average of $1,726 on gas and $1,282 on repairs, maintenance, and tires every year.

• What makes a state expensive for car ownership? Across the most expensive states for owning a car in 2022, the most consistent factors are above-average vehicle tax and driving rates. First, almost half the states in the U.S. have no vehicle property taxes, meaning drivers in states that do have these taxes are paying between $500 and $1,000 more per year than many of their fellow Americans. Second, residents in states with lower population densities typically drive further between destinations, racking up higher annual mileage. In the top 10 most expensive states for car ownership, residents drive an average of 19% more miles per year than a typical American motorist, amounting to hundreds of additional dollars spent on fuel and vehicle maintenance every year.

• Insurance and tax heterogeneity contribute to geographic outliers. Some of the most expensive states on this list are substantially more so than their closest neighbors, and this is typically due to extreme state-to-state variation in insurance or tax rates. For example, it costs 33% and 43% more to operate an automobile in Michigan than it does in neighboring Wisconsin and Ohio, respectively, most notably because Michigan has the most expensive car insurance costs in the nation, while Ohio and Wisconsin both have below-average rates. Similarly, it costs 27% more to own a car in Mississippi than it does in Alabama, and a huge portion of this difference is that Mississippi’s effective vehicle tax rate is five times higher than Alabama’s.

Methodology

To calculate the average cost of car ownership in 2022, the data scientists at Insurify, a leading car insurance comparison site, summed the average yearly costs of car insurance, vehicle property taxes, gasoline, and vehicle maintenance and repairs in every state. These combined expenses represent the vast majority of what the typical American spends on their car every year, excluding auto lease or loan payments, which are highly individualized to each vehicle and do not vary geographically the way the other factors in this study do.

Car insurance prices come from Insurify’s proprietary database of over 40 million rates from car insurance applications in the past year. Drivers who apply for car insurance using Insurify disclose their state of residence and receive actual premium quotes from insurance companies on the platform.

When calculating statewide averages for tax and gasoline costs, estimates in each state are for drivers owning a base-level 2022 Honda Accord — the most popular car in America when considering all model years. Property tax rates come from WalletHub’s compilation of effective vehicle tax rates in each state, and annual costs were calculated based on the 2022 Honda Accord’s MSRP of $26,520.^[7]

Insurify data scientists used AAA’s gas prices data to determine the average cost of a gallon of regular gasoline in each state in August 2022.^[8] They then used the U.S. Department of Transportation’s most recent highway statistics data to identify the average number of urban and rural miles that a driver in each state travels per year.^[9] Considering this data, along with the base-level Honda Accord’s 30 city/38 highway MPG, Insurify’s data scientists calculated the annual gasoline expenses for the average driver in each state.^[10]

Using the same travel data, Insurify’s data science team calculated the average yearly cost that drivers in each state spend on vehicle maintenance, repairs, and tires using AAA’s most recent driving costs estimates.^[11]

The findings in this article represent statistical trends found in Insurify’s database of over 4.6 million car insurance applications. The findings of this study are not meant to imply the direction nor necessarily the existence of a causal relationship. Rather, this is a presentation of statistical correlations of public interest.

How Much It Costs to Own a Car in Every State (2022)

Alabama

• Yearly insurance, tax, gas, and maintenance costs: $4,936 (within 1% of the national average)

• Average cost of car insurance (2022): $1,270

• Effective vehicle tax rate: 0.69%

• Cost of a regular gallon of gas (August 2022): $3.46

Alaska

• Yearly insurance, tax, gas, and maintenance costs: $3,663 (26% less than the national average)

• Average cost of car insurance (2022): $1,023

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.88

Arizona

• Yearly insurance, tax, gas, and maintenance costs: $4,854 (2% less than the national average)

• Average cost of car insurance (2022): $1,560

• Effective vehicle tax rate: 1.68%

• Cost of a regular gallon of gas (August 2022): $4.03

Arkansas

• Yearly insurance, tax, gas, and maintenance costs: $5,018 (1% more than the national average)

• Average cost of car insurance (2022): $1,444

• Effective vehicle tax rate: 1.02%

• Cost of a regular gallon of gas (August 2022): $3.40

California

• Yearly insurance, tax, gas, and maintenance costs: $4,796 (3% less than the national average)

• Average cost of car insurance (2022): $1,357

• Effective vehicle tax rate: 0.65%

• Cost of a regular gallon of gas (August 2022): $5.31

Colorado

• Yearly insurance, tax, gas, and maintenance costs: $4,806 (3% less than the national average)

• Average cost of car insurance (2022): $1,611

• Effective vehicle tax rate: 1.79%

• Cost of a regular gallon of gas (August 2022): $3.87

Connecticut

• Yearly insurance, tax, gas, and maintenance costs: $5,357 (8% more than the national average)

• Average cost of car insurance (2022): $2,002

• Effective vehicle tax rate: 2.59%

• Cost of a regular gallon of gas (August 2022): $3.99

Delaware

• Yearly insurance, tax, gas, and maintenance costs: $4,981 (within 1% of the national average)

• Average cost of car insurance (2022): $2,336

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.79

District of Columbia

• Yearly insurance, tax, gas, and maintenance costs: $3,619 (27% less than the national average)

• Average cost of car insurance (2022): $2,031

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.09

Florida

• Yearly insurance, tax, gas, and maintenance costs: $4,995 (1% more than the national average)

• Average cost of car insurance (2022): $2,031

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.53

Georgia

• Yearly insurance, tax, gas, and maintenance costs: $5,661 (14% more than the national average)

• Average cost of car insurance (2022): $2,031

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.41

Hawaii

• Yearly insurance, tax, gas, and maintenance costs: $3,812 (23% less than the national average)

• Average cost of car insurance (2022): $762

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $5.32

Idaho

• Yearly insurance, tax, gas, and maintenance costs: $4,298 (13% less than the national average)

• Average cost of car insurance (2022): $1,038

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.63

Illinois

• Yearly insurance, tax, gas, and maintenance costs: $3,972 (20% less than the national average)

• Average cost of car insurance (2022): $1,154

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.23

Indiana

• Yearly insurance, tax, gas, and maintenance costs: $5,136 (4% more than the national average)

• Average cost of car insurance (2022): $1,001

• Effective vehicle tax rate: 1.38%

• Cost of a regular gallon of gas (August 2022): $3.87

Iowa

• Yearly insurance, tax, gas, and maintenance costs: $4,226 (15% less than the national average)

• Average cost of car insurance (2022): $1,103

• Effective vehicle tax rate: 1.00%

• Cost of a regular gallon of gas (August 2022): $3.56

Kansas

• Yearly insurance, tax, gas, and maintenance costs: $4,637 (7% less than the national average)

• Average cost of car insurance (2022): $1,226

• Effective vehicle tax rate: 1.93%

• Cost of a regular gallon of gas (August 2022): $3.54

Kentucky

• Yearly insurance, tax, gas, and maintenance costs: $5,493 (11% more than the national average)

• Average cost of car insurance (2022): $1,959

• Effective vehicle tax rate: 1.45%

• Cost of a regular gallon of gas (August 2022): $3.49

Louisiana

• Yearly insurance, tax, gas, and maintenance costs: $5,385 (9% more than the national average)

• Average cost of car insurance (2022): $2,438

• Effective vehicle tax rate: 0.10%

• Cost of a regular gallon of gas (August 2022): $3.44

Maine

• Yearly insurance, tax, gas, and maintenance costs: $4,583 (8% less than the national average)

• Average cost of car insurance (2022): $994

• Effective vehicle tax rate: 2.40%

• Cost of a regular gallon of gas (August 2022): $4.13

Maryland

• Yearly insurance, tax, gas, and maintenance costs: $5,241 (6% more than the national average)

• Average cost of car insurance (2022): $2,343

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.89

Massachusetts

• Yearly insurance, tax, gas, and maintenance costs: $4,692 (5% less than the national average)

• Average cost of car insurance (2022): $1,125

• Effective vehicle tax rate: 2.25%

• Cost of a regular gallon of gas (August 2022): $4.14

Michigan

• Yearly insurance, tax, gas, and maintenance costs: $5,691 (15% more than the national average)

• Average cost of car insurance (2022): $2,510

• Effective vehicle tax rate: 0.61%

• Cost of a regular gallon of gas (August 2022): $3.88

Minnesota

• Yearly insurance, tax, gas, and maintenance costs: $4,542 (8% less than the national average)

• Average cost of car insurance (2022): $1,262

• Effective vehicle tax rate: 1.29%

• Cost of a regular gallon of gas (August 2022): $3.83

Mississippi

• Yearly insurance, tax, gas, and maintenance costs: $6,287 (27% more than the national average)

• Average cost of car insurance (2022): $1,582

• Effective vehicle tax rate: 3.46%

• Cost of a regular gallon of gas (August 2022): $3.41

Missouri

• Yearly insurance, tax, gas, and maintenance costs: $5,895 (19% more than the national average)

• Average cost of car insurance (2022): $1,582

• Effective vehicle tax rate: 2.60%

• Cost of a regular gallon of gas (August 2022): $3.49

Montana

• Yearly insurance, tax, gas, and maintenance costs: $4,742 (4% less than the national average)

• Average cost of car insurance (2022): $1,088

• Effective vehicle tax rate: 1.23%

• Cost of a regular gallon of gas (August 2022): $4.20

Nebraska

• Yearly insurance, tax, gas, and maintenance costs: $4,717 (5% less than the national average)

• Average cost of car insurance (2022): $1,349

• Effective vehicle tax rate: 1.57%

• Cost of a regular gallon of gas (August 2022): $3.69

Nevada

• Yearly insurance, tax, gas, and maintenance costs: $6,315 (27% more than the national average)

• Average cost of car insurance (2022): $2,380

• Effective vehicle tax rate: 1.79%

• Cost of a regular gallon of gas (August 2022): $4.91

New Hampshire

• Yearly insurance, tax, gas, and maintenance costs: $3,914 (21% less than the national average)

• Average cost of car insurance (2022): $979

• Effective vehicle tax rate: 1.80%

• Cost of a regular gallon of gas (August 2022): $4.01

New Jersey

• Yearly insurance, tax, gas, and maintenance costs: $4,724 (5% less than the national average)

• Average cost of car insurance (2022): $1,995

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.03

New Mexico

• Yearly insurance, tax, gas, and maintenance costs: $4,862 (2% less than the national average)

• Average cost of car insurance (2022): $1,030

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.77

New York

• Yearly insurance, tax, gas, and maintenance costs: $4,707 (5% less than the national average)

• Average cost of car insurance (2022): $2,423

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.22

North Carolina

• Yearly insurance, tax, gas, and maintenance costs: $4,482 (10% less than the national average)

• Average cost of car insurance (2022): $936

• Effective vehicle tax rate: 1.20%

• Cost of a regular gallon of gas (August 2022): $3.58

North Dakota

• Yearly insurance, tax, gas, and maintenance costs: $4,533 (9% less than the national average)

• Average cost of car insurance (2022): $994

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.88

Ohio

• Yearly insurance, tax, gas, and maintenance costs: $3,985 (20% less than the national average)

• Average cost of car insurance (2022): $1,088

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.62

Oklahoma

• Yearly insurance, tax, gas, and maintenance costs: $4,809 (3% less than the national average)

• Average cost of car insurance (2022): $1,349

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.53

Oregon

• Yearly insurance, tax, gas, and maintenance costs: $4,164 (16% less than the national average)

• Average cost of car insurance (2022): $1,328

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.82

Pennsylvania

• Yearly insurance, tax, gas, and maintenance costs: $3,785 (24% less than the national average)

• Average cost of car insurance (2022): $1,270

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.19

Rhode Island

• Yearly insurance, tax, gas, and maintenance costs: $4,776 (4% less than the national average)

• Average cost of car insurance (2022): $1,770

• Effective vehicle tax rate: 3.01%

• Cost of a regular gallon of gas (August 2022): $4.05

South Carolina

• Yearly insurance, tax, gas, and maintenance costs: $5,447 (10% more than the national average)

• Average cost of car insurance (2022): $1,879

• Effective vehicle tax rate: 2.50%

• Cost of a regular gallon of gas (August 2022): $3.46

South Dakota

• Yearly insurance, tax, gas, and maintenance costs: $4,187 (16% less than the national average)

• Average cost of car insurance (2022): $1,132

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.86

Tennessee

• Yearly insurance, tax, gas, and maintenance costs: $4,700 (5% less than the national average)

• Average cost of car insurance (2022): $1,277

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.46

Texas

• Yearly insurance, tax, gas, and maintenance costs: $5,109 (3% more than the national average)

• Average cost of car insurance (2022): $1,915

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.42

Utah

• Yearly insurance, tax, gas, and maintenance costs: $4,946 (within 1% of the national average)

• Average cost of car insurance (2022): $1,349

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.51

Vermont

• Yearly insurance, tax, gas, and maintenance costs: $4,268 (14% less than the national average)

• Average cost of car insurance (2022): $1,023

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.19

Virginia

• Yearly insurance, tax, gas, and maintenance costs: $5,359 (8% more than the national average)

• Average cost of car insurance (2022): $1,335

• Effective vehicle tax rate: 4.04%

• Cost of a regular gallon of gas (August 2022): $3.67

Washington

• Yearly insurance, tax, gas, and maintenance costs: $4,038 (19% less than the national average)

• Average cost of car insurance (2022): $1,415

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $4.77

West Virginia

• Yearly insurance, tax, gas, and maintenance costs: $5,180 (4% more than the national average)

• Average cost of car insurance (2022): $1,277

• Effective vehicle tax rate: 1.67%

• Cost of a regular gallon of gas (August 2022): $3.86

Wisconsin

• Yearly insurance, tax, gas, and maintenance costs: $4,271 (14% less than the national average)

• Average cost of car insurance (2022): $1,197

• Effective vehicle tax rate: 0%

• Cost of a regular gallon of gas (August 2022): $3.66

Wyoming

• Yearly insurance, tax, gas, and maintenance costs: $6,327 (28% more than the national average)

• Average cost of car insurance (2022): $943

• Effective vehicle tax rate: 1.80%

• Cost of a regular gallon of gas (August 2022): $4.01

If you have any questions or comments about this article or would like to request the data, please contact insights@insurify.com.