Sunday, September 20, 2015

Most Expensive States for Drivers: Where Does Yours Rank?

We're not sure if it's fitting or ironic, or ironically fitting, that the seat of the American auto industry is in the most expensive state to own and operate a car. According to a recent study by financial-news provider 24/7 Wall St., drivers in Michigan shell out the most cash to keep their cars going.

Related: Study Ranks Best and Worst States for Drivers

The analysis examined average annual maintenance, repair, insurance and gas costs in each state using data from the Federal Highway Administration, CarMD, Insure.com, AAA, the American Petroleum Institute and the U.S. Census Bureau. It concluded that Michigan motorists pay nearly $4,700 a year in automotive expenses. Meanwhile, drivers in Hawaii enjoy the lowest car costs in the U.S. at $2,732 a year.

At a national average of $1,840, fuel costs far and away were the greatest expense, representing the highest cost in all but five states and accounting for more than half of all annual operating expenditures in 35 states. That's even amid many months of falling gas prices that experts predict could go below $2 in many parts of the nation by year's end.

"While high gas prices make driving more expensive on a given day, drivers often drive less when gas prices are high and therefore end up actually paying less for gas over the course of the year," 24/7 Wall St. stated. "Conversely, an especially low gas price may encourage driving. Because of this, car owners often end up with a higher annual gas expenditure."

Car insurance was the second-highest expense for American drivers at a national average of $1,311; it accounted for the greatest portion of operating expenses in only five states. Michigan, for example, requires drivers to purchase unlimited medical coverage for all people involved in an accident, resulting in the highest average premium in the nation of $2,476. Repair and maintenance, meanwhile, comprised the lowest annual costs for motorists, totaling only a few hundred dollars in some states.

The most expensive states for drivers, followed by total annual operating costs, average gas prices per gallon and average insurance premiums, are:

1. Michigan; $4,678, operating; $2.82, gas; $2,476, insurance

2. Mississippi; $4,474; $2.46; $1,584

3. North Dakota; $4,461; $2.72; $1,377

4. California; $4,392; $3.80; $1,643

5. Maryland; $4,319; $2.75; $1,590

6. West Virginia; $4,114; $2.78; $1,716

7. Wyoming; $4,059; $2.81; $1,371

8. Louisiana; $4,041; $2.54; $1,774

9. Texas; $4,030; $2.56; $1,449

10. Georgia; $3,987; $2.65; $1,519

11. Oklahoma; $3,846; $2.56; $1,496

12. Connecticut; $3,837; $2.93; $1,690

13. Florida; $3,799; $2.66; $1,742

14. New Jersey; $3,754; $2.59; $1,595

15. New Mexico; $3,716; $2.71; $1,237

16. Nevada; $3,685; $3.27; $1,248

17. Utah; $3,681; $2.97; $1,059

18. Arkansas; $3,663; $2.49; $1,239

19. South Carolina; $3,652; $2.41; $1,210

20. Kentucky; $3,641; $2.70; $1,341

21. Massachusetts; $3,621; $2.76; $1,460

22. Montana; $3,604; $2.82; $1,886

23. Tennessee; $3,474; $2.51; $1,263

24. Alaska; $3,474; $3.47; $1,410

25. Pennsylvania; $3,470; $2.85; $1,304

At the other end of the spectrum, the least expensive states for drivers are:

1. Hawaii; $2,732, operating; $3.34, gas; $1,114, insurance

2. New Hampshire; $2,775; $2.71; $905

3. Wisconsin; $2,882; $2.75; $930

4. Ohio; $2,898; $2.75; $843

5. Iowa; $2,903; $2.67; $886

6. Idaho; $2,933; $3.05; $877

7. Vermont; $2,972; $2.75; $957

8. North Carolina; $3,149; $2.62; $986

9. Minnesota; $3,157; $2.67; $1,222

10. Illinois; $3,158; $2.91; $1,079

11. Washington; $3,165; $3.20; $1,110

12. Virginia; $3,170; $2.57; $1,008

13. Colorado; $3,196; $2.70; $1,245

14. Nebraska; $3,196; $2.68; $1,086

15. Arizona; $3,207; $2.79; $1,103

16. New York; $3,220; $2.93; $1,013

17. Missouri; $3,233; $2.55; $1,114

18. Kansas; $3,282; $2.60; $1,147

19. Oregon; $3,299; $3.15; $1,211

20. Maine; $3,310; $2.79; $805

21. Delaware; $3,315; $2.67; $1,542

22. South Dakota; $3,318; $2.74; $1,180

23. Alabama; $3,386; $2.47; $1,320

24. Rhode Island; $3,392; $2.79; $1,656

25. Indiana; $3,406; $2.66; $1,033

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