By DCB Editorial, August 19, 2025
Having a car in America can be one of two starkly different experiences based on where you are. Some states are inexpensive to drive, while others add on expenses such as high insurance, high registration, and high repair costs.
Data gathered from EpicVIN showed thousands of vehicle records, combined with state-level data, to identify the 12 most expensive states for car ownership in 2025.
Our research looks beyond just insurance or gas prices—we include hidden costs such as annual fees, average repair bills, and even state-specific taxes.
Why Some States Cost More
A number of factors push up the cost of owning a car:
Insurance premiums – In states where accidents are more frequent or the climate is more extreme, drivers pay twice the national average.
Registration and fees – Some states charge flat fees, others scale them by vehicle weight or value.
Repair and maintenance expenses – Repair costs at shops differ significantly; states with extreme winters tend to pay more for repairs.
Gas prices – States with extra fuel taxes see drivers spending hundreds more per year.
On average, the gap between the cheapest and most expensive states can reach over $3,000 per year. That’s money equal to a used car payment or a family vacation.
“Car buyers often focus on the sticker price, but where you live can add thousands to your annual ownership costs. Our database helps drivers see the bigger picture before they commit.” — Alex Black, CMO at EpicVIN.
| State | Average Annual Cost | % Above U.S. Average | Main Cost Drivers |
| California | $5,500 | +40% | Gas taxes, registration, insurance |
| Michigan | $5,000 | +35% | No-fault insurance system |
| Nevada | $4,700 | +30% | Insurance, heat-related repairs |
| Louisiana | $4,900 | +32% | Hurricanes, flooding, insurance |
| New Jersey | $4,800 | +30% | Insurance, tolls, gas taxes |
| New York | $5,200+ (NYC higher) | +38% | Parking fees, insurance |
| Florida | $5,000 | +35% | Hurricanes, high insurance |
| Connecticut | $4,600 | +28% | Registration fees, repair costs |
| Maryland | $4,700 | +30% | Insurance, dense traffic |
| Rhode Island | $4,800 | +30% | Insurance, repair bills |
| Massachusetts | $4,900 | +32% | Insurance, strict inspections |
| Hawaii | $5,200 | +38% | Fuel prices, shipping costs |
U.S. national average annual cost: about $3,900
1. California
California drivers face some of the highest costs nationwide. Gas taxes alone add nearly $0.60 per gallon, making fuel bills steep. Insurance is also expensive due to heavy traffic and frequent accidents.
EpicVIN data shows the average California driver spends about $5,500 per year to keep a car on the road — nearly 40% above the national average. Registration fees rise quickly for newer or high-value vehicles.
On Reddit, many locals complain: “I pay more to register my 10-year-old Civic here than my brother does for his brand-new SUV in another state.” (source)
2. Michigan
Michigan’s no-fault insurance system requires very broad coverage. That alone pushes average premiums to $2,200 per year, nearly twice the U.S. median.
EpicVIN research shows insurance makes up 54% of ownership costs in Michigan, the highest share in the nation.
Reddit users often say they stick with older cars: “I’d love to upgrade, but what’s the point if insurance costs me more than the payment?” (source)
3. Nevada
Nevada drivers pay for high insurance and heat-related repairs. In Las Vegas, accident rates raise premiums to around $1,900 annually, while desert heat wears out batteries, tires, and A/C systems.
One Reddit user joked: “Owning a car in Vegas is like gambling. You’re either paying for insurance or fixing something the heat destroyed.” (source)
4. Louisiana
Insurance in Louisiana is among the nation’s highest due to hurricanes, floods, and frequent claims. Drivers often pay $2,100 a year, and EpicVIN’s records confirm that flood damage is a leading cause of total losses in New Orleans and Baton Rouge.
As one Redditor put it: “I’ve had two cars totaled by floods in 10 years, and the premiums keep climbing. Feels like driving here is a luxury.” (source)
5. New Jersey
New Jersey costs stack up through insurance, tolls, and gas taxes. EpicVIN estimates the average driver spends $4,800 annually, with toll bills adding hundreds more.
A common Reddit comment: “Owning a car here is bad enough, but add $150 a month in tolls and it feels insane.” (source)
6. New York
Upstate drivers pay less, but in New York City, cars are a financial drain. Insurance averages $2,000+ per year, but parking is the killer: $300–$500 per month in many neighborhoods.
One frustrated Reddit post reads: “I pay more to park my car than some people pay in rent across the country.” (source)
7. Florida
Florida drivers face sky-high insurance due to hurricanes, floods, and heavy traffic. EpicVIN’s data puts the average annual premium at $2,400. Repairs are also pricey in cities like Miami.
Reddit users complain: “Every time hurricane season comes, insurance goes up. I’m basically paying to gamble against storms.” (source)
8. Connecticut
Connecticut combines high registration fees with steep repair costs. Labor rates at local shops are higher than average, pushing maintenance bills up.
EpicVIN estimates Connecticut drivers spend around $4,600 a year on ownership costs, making it one of New England’s priciest states.
9. Maryland
Maryland’s dense traffic near Washington, D.C. drives up insurance and repair expenses. Gas prices also sit above the national average.
EpicVIN data shows average yearly costs near $4,700, with insurance accounting for nearly half.
10. Rhode Island
Despite its size, Rhode Island packs in costs. Insurance premiums run 25% above national averages, and repair bills are high due to labor shortages.
EpicVIN research shows ownership costs approach $4,800 annually.
11. Massachusetts
Massachusetts has high insurance rates and strict state inspection rules that lead to extra repair expenses. Boston’s dense traffic also pushes costs upward.
Drivers here spend roughly $4,900 per year according to EpicVIN’s analysis.
12. Hawaii
Hawaii combines island fuel costs, high shipping fees for parts, and steep insurance. Drivers face gas prices regularly over $5 a gallon.
EpicVIN found that the average Hawaiian driver spends over $5,200 annually, with repair parts sometimes costing 30% more due to shipping.
Car ownership costs don’t stop at the dealership. Where you live can make the difference between affordable driving and thousands of dollars in extra expenses each year.