2024’s Costliest States for Car Ownership

Embracing the freedom of driving your own car often comes with a hefty financial toll. Beyond the initial purchase price, car ownership encompasses a multitude of expenses, from repair bills to insurance premiums. According to AAA’s latest data from 2023, the annual cost of owning and operating a new car can soar up to $12,182, equivalent to $1,015 per month.

Our investigation unveiled significant disparities in the financial burden of car ownership across different regions of the United States, primarily influenced by varying factors such as gas prices, repair expenses, and insurance premiums.

In our quest to pinpoint the states where car ownership exacts the highest toll on wallets, our team meticulously examined gas prices (based on February 2024 data), repair costs, car insurance premiums, and used car prices across all 50 states.

Utilizing Car Insurance to Cut Down on the Expenses of Car Ownership

As car ownership continues to rise, it’s evident that Americans have a deep affection for their vehicles. The number of registered personal and commercial vehicles reached 278 million on the roads by 2022, marking a 3.5% increase from 2018 to 2022.

Given the sheer volume of cars traversing the highways, securing adequate car insurance coverage is essential. Car insurance not only helps defray repair costs but also provides crucial protection in the event of an accident.

The average annual cost of comprehensive car insurance stands at $2,150. As insurance premiums continue to climb, finding affordable coverage may seem daunting. However, several insurance companies still offer budget-friendly options.

While your state of residence significantly influences insurance premiums, various factors determine the cost of coverage:

– Driving record: Drivers with a history of accidents and traffic violations typically face higher premiums than those with clean records.
– Age and driving experience: Younger, less experienced drivers generally pay more than their older, seasoned counterparts.
– Gender: Unfortunately, gender also plays a role, with young males often facing higher premiums compared to females.
– Marital status: Married drivers often enjoy lower insurance rates than single individuals.
– Car make and model: Repair costs associated with the vehicle’s make and model impact insurance premiums.
– Coverage selection: The extent and type of coverage chosen affect overall insurance costs.

Numerous insurance providers offer a variety of coverage options. Conducting thorough research to determine your coverage needs is crucial when selecting the appropriate car insurance policy.

The Most Expensive States For Car Ownership 2024
[ Getty Creative ]

Methodology

Forbes Advisor conducted an analysis to determine the states with the highest car ownership costs, considering data from all 50 states across the following criteria:

  1. 1. Average cost of a used car (35% weight): This data, sourced from iSeeCars in 2022, evaluates the average cost of used cars.
  2. Average annual cost of full coverage car insurance (25% weight): This metric factors in rates for full coverage car insurance, based on a profile of a 40-year-old female driver with a Toyota RAV4. The coverage includes liability coverage of 100/300/100 ($100,000 for injuries to one person, $300,000 for injuries per accident, and $100,000 for property damage), uninsured motorist coverage, and collision and comprehensive insurance with a $500 deductible. Data was obtained from Quadrant Information Services.
  3. Β Cost of regular gasoline (20% weight): AAA data collected on February 14, 2024, provides insights into the cost of regular gasoline.
  4. Average car repair cost (20% weight): This criterion considers the cost of parts and labor for a check engine light-related car repair. CarMD data from 2022 is used for this analysis.
Atif Wattoo
Atif Wattoohttp://globalnewsone.com
πŸ‘‹ Hey there! I'm Muhammad Atif Wattoo, a passionate website developer with a focus on crafting exceptional experiences using Next.js and React.js.πŸ’» With several years of experience under my belt, I've honed my skills in building dynamic and responsive web applications that not only look great but also deliver seamless performance across various platforms and devices.πŸš€ Whether it's creating user-friendly interfaces, optimizing site speed, or integrating complex functionalities, I thrive on turning ideas into reality through clean and efficient code.πŸ”§ My expertise extends to leveraging the latest tools and technologies in the React ecosystem to streamline development workflows and deliver robust solutions that meet the unique needs of each project.🌟 Beyond coding, I'm committed to staying updated with industry trends and best practices to ensure that the solutions I deliver are not just cutting-edge but also future-proof.🌐 If you're looking to elevate your online presence or bring your web application to life, I'm here to collaborate with you every step of the way, from concept to deployment.Let's build something awesome together! Feel free to reach out to me at +923058262461 to discuss your next project.

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