The Most Expensive States to Own a Car in 2026

Updated: February 6, 2026

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Delaware drivers pay the highest annual car ownership costs in America at $7,452, while Iowa offers the most affordable option at $3,261, a difference of $4,191 annually.

Car ownership remains one of America's largest household expenses. We ranked all 50 states by total annual car ownership costs from four recurring expenses: vehicle registration fees, auto insurance premiums, fuel costs and maintenance and repairs. Our research shows stark differences where your state alone can mean paying more than double for the same vehicle. The national median across all states is $4,003 annually for these four recurring expenses.

Key Numbers at a Glance


Total Annual Cost	Delaware: $7,452	Iowa: $3,261	$4,191 (129%)
Insurance	Georgia: $2,912	Virginia: $902	$2,010
Gas	Delaware: $2,687	Montana: $764	$1,923
Maintenance	Delaware: $2,571	Montana: $784	$1,787
Registration	Mississippi: $719	Georgia: $20	$699

TOP FINDINGS

Delaware tops the nation at $7,452 annually. High gas costs ($2,687), insurance premiums ($2,149) and high driving mileage that adds $2,571 in maintenance expenses push Delaware far above all other states.
Iowa offers the lowest costs at $3,261 annually. Moderate registration fees ($333), low insurance premiums ($1,009) and below-average mileage that keeps maintenance costs at $1,013 make Iowa the most affordable state for car owners.
Insurance premiums create the widest variation between states. Annual premiums range from $902 in Virginia to $2,912 in Georgia, based on our proprietary insurance analysis. This insurance premium spread of $2,010 exceeds differences in registration, fuel and maintenance, making insurance the single biggest driver of state-to-state cost gaps.
Gas costs vary widely. Annual fuel expenses range from $764 in Montana to $2,687 in Delaware, calculated using Federal Highway Administration vehicle miles data, AAA state gas prices and EPA fuel economy standards. This $1,923 fuel cost difference greatly impacts total ownership costs.
Driving patterns determine maintenance costs. Annual maintenance expenses range from $784 in Montana to $2,571 in Delaware, reflecting how much residents actually drive. Montanans average 7,105 miles per year while Delawarians drive 23,290 miles annually, a 228% mileage difference that adds about $1,787 in wear-and-tear costs.
Population size and urbanization don't always predict costs. Several populous or highly urbanized states buck expectations: Illinois ranks 44th overall (toward the more affordable end of the list) despite Chicago's density, while sparsely populated Delaware ranks as the single most expensive state.

WHY 2026 COSTS LOOK DIFFERENT

Several national trends may be contributing to 2026 car ownership costs. Insurance markets have been adjusting to elevated claims costs and major weather losses in recent years. Driving patterns continue to vary widely by state as some regions keep remote work arrangements while others have returned to traditional commuting. States also experience different inflation rates for vehicle services and repairs, affecting maintenance costs.

The 10 Most Expensive States to Own a Car

A counterintuitive pattern appears in many high-cost states. Georgia charges just $20 for registration, the nation's lowest, yet has the highest insurance costs at $2,912. Delaware and Maine show similar contrasts with registration fees under $50 but insurance premiums exceeding $2,100. Low registration fees don't offset high insurance costs when premiums and driving patterns drive your total expense.


50	Delaware	$7,452	$45	$2,149	$2,687	$2,571
49	Georgia	$5,943	$20	$2,912	$1,450	$1,561
48	New Mexico	$5,474	$60	$2,160	$1,569	$1,685
47	Maine	$5,351	$40	$2,827	$1,233	$1,251
46	California	$5,344	$524	$1,861	$1,801	$1,158
45	Mississippi	$5,165	$719	$1,310	$1,072	$2,064
44	Arizona	$4,985	$564	$1,628	$1,439	$1,354
43	Florida	$4,950	$297	$1,963	$1,288	$1,402
42	North Carolina	$4,911	$370	$1,435	$1,524	$1,582
41	New York	$4,856	$146	$1,388	$1,714	$1,608

Delaware ($7,452)

Delaware requires America's highest annual ownership expenses despite having no state sales tax on vehicle purchases. Gas expenses alone average $2,687, the highest in the nation based on our analysis of AAA gas prices and driving patterns. Insurance premiums of $2,149 rank among the highest nationally in our analysis.

Delaware drivers also log 23,290 miles annually, more than 2.5 times Iowa's 9,173 miles, adding $2,571 in maintenance costs, the highest in the nation. Overall, Delaware drivers pay 129% more than Iowa drivers for car ownership.

Georgia ($5,943)

Georgia has the nation's highest auto insurance premiums at $2,912 annually, based on our rate analysis. CarEdge data shows Georgia charges just $20 for registration, the lowest in America, but these minimal savings disappear against insurance costs exceeding $2,900. Georgia drivers log 14,137 miles annually, pushing maintenance costs to $1,561.

New Mexico ($5,474)

New Mexico combines elevated insurance premiums ($2,160), among the highest nationally in our analysis, with above-average gas costs ($1,569). New Mexico drivers also cover 15,267 miles annually, adding $1,685 in maintenance expenses.

Maine ($5,351)

Maine crosses the $5,300 annual threshold primarily due to insurance costs. At $2,827 annually, Maine has one of the highest insurance premiums in America based on our research, exceeded only by a few states such as Georgia. Maine is the most expensive Northeastern state for car ownership. Moderate driving mileage keeps maintenance at $1,251.

California ($5,344)

California drivers pay $1,801 annually for gas, among the highest in the nation. High registration fees ($524 according to CarEdge) and elevated insurance ($1,861 from our analysis) push California ownership costs above $5,300 annually. Lower-than-average driving mileage (10,489 miles per year) keeps maintenance costs at $1,158, providing some relief.

Mississippi ($5,165)

Mississippi's registration fees rank highest nationwide at $719. High annual mileage of 18,699 miles pushes maintenance costs to $2,064, among the highest in the nation. Along with gas expenses of $1,072 and insurance of $1,310, Mississippi ranks sixth overall.

Arizona ($4,985)

Arizona's registration fees ($564) rank among the highest nationwide. Add in insurance costs of $1,628 from our analysis and above-average mileage that adds $1,354 in maintenance, and annual expenses approach $5,000. Arizona's registration structure bases fees on vehicle value and age.

Florida ($4,950)

Florida's insurance premiums ($1,963) rank among the highest nationally in our study. Registration fees of $297 and above-average driving mileage (12,700 miles annually) that generates $1,402 in maintenance costs push Florida just below $5,000 annually. Florida ranks among the most expensive Southern states for car ownership.

North Carolina ($4,911)

Relatively high gas costs in North Carolina ($1,524), among the highest nationally, combine with registration fees ($370) and elevated maintenance costs from 14,333 annual miles driven ($1,582) to push costs above $4,900. North Carolina ranks ninth overall and is one of the more expensive Southern states.

New York ($4,856)

New York rounds out the top 10 at $4,856 annually. High annual mileage of 14,562 miles drives maintenance costs to $1,608, while gas expenses of $1,714 rank among the highest nationally. Moderate registration fees ($146) and insurance ($1,388) complete New York's cost profile.

The 10 Least Expensive States to Own a Car

The most affordable states share common traits: competitive insurance markets, low annual mileage and minimal registration fees. Iowa leads with $3,261 in annual costs, benefiting from insurance premiums of just $1,009 and below-average driving that keeps maintenance at $1,013. Montana's rock-bottom mileage of 7,105 miles annually creates the nation's lowest maintenance costs at $784. Virginia offers America's cheapest insurance at $902, while Ohio charges minimal registration fees of $31.


1	Iowa	$3,261	$333	$1,009	$906	$1,013
2	Montana	$3,271	$237	$1,486	$764	$784
3	Idaho	$3,315	$126	$983	$1,112	$1,094
4	Ohio	$3,388	$31	$1,078	$1,120	$1,159
5	North Dakota	$3,434	$123	$1,264	$969	$1,078
6	Washington	$3,437	$73	$1,162	$1,286	$916
7	Illinois	$3,467	$151	$952	$1,208	$1,156
8	South Dakota	$3,479	$122	$1,559	$860	$938
9	Virginia	$3,481	$36	$902	$1,284	$1,259
10	Rhode Island	$3,585	$58	$1,407	$1,070	$1,050

Iowa ($3,261)

Iowa offers America's most affordable car ownership at $3,261 annually. Low insurance costs ($1,009) rank among the best nationally, while below-average annual mileage of 9,173 miles keeps maintenance expenses at $1,013. Combined with low gas costs ($906) and moderate registration fees ($333), Iowa provides major savings.

Montana ($3,271)

Montana ranks second-cheapest at $3,271 annually. Drivers benefit from the nation's lowest annual mileage of 7,105 miles per year, resulting in maintenance costs of only $784, the lowest in America. This low-mileage lifestyle, plus the lowest annual fuel costs ($764) and moderate insurance ($1,486), makes Montana very affordable despite registration fees of $237.

Idaho ($3,315)

Idaho ranks third at $3,315 annually. Idaho's low insurance premiums ($983) rank among the nation's most affordable, while below-average mileage of 9,908 miles keeps maintenance expenses at $1,094. Minimal registration fees ($126) and reasonable gas costs ($1,112) keep Idaho among the most budget-friendly states.

Ohio ($3,388)

Ohio ranks fourth with minimal registration fees of $31, among the lowest nationally according to CarEdge. Below-average costs across insurance ($1,078), gas ($1,120) and maintenance ($1,159) create meaningful savings. Ohio's competitive insurance market and reasonable fuel prices make the state attractive for drivers seeking affordability.

North Dakota ($3,434)

North Dakota keeps costs at $3,434 annually through low maintenance expenses ($1,078) from below-average mileage of 9,764 miles per year. Along with registration fees of $123, reasonable insurance ($1,264) and low gas costs ($969), North Dakota ranks fifth overall.

Washington ($3,437)

Washington drivers benefit from some of the lowest maintenance costs at $916, reflecting annual mileage of just 8,294 miles. Low registration fees ($73) and reasonable insurance ($1,162) keep Washington in the top six most affordable states despite gas costs of $1,286.

Illinois ($3,467)

Illinois keeps remarkably low total costs despite Chicago's urban density. Illinois insurance premiums rank among the lowest in the study at $952 annually. Moderate mileage of 10,471 miles annually keeps maintenance at $1,156. Lower insurance costs help offset higher gas prices in metro areas, showing that larger urban states can still offer affordability through competitive insurance markets.

South Dakota ($3,479)

South Dakota ranks eighth through low maintenance costs ($938) from relatively low annual mileage of 8,497 miles. The state also offers low gas costs at $860, though higher insurance premiums ($1,559) offset some savings.

Virginia ($3,481)

Virginia has America's lowest insurance costs at $902 annually, based on our analysis. Minimal registration fees ($36) and moderate maintenance costs ($1,259) keep Virginia among the nation's most affordable states despite gas costs of $1,284.

Rhode Island ($3,585)

Rhode Island keeps costs under $3,600 through relatively low maintenance expenses ($1,050) from annual mileage of 9,508 miles. Low registration fees ($58) and reasonable gas costs ($1,070) help offset higher insurance premiums of $1,407.

What Creates These Cost Differences?

Four expense categories drive the $4,191 gap between the most and least expensive states. Insurance premiums create the widest variation at $2,010 between states, followed by gas costs ($1,923 spread), maintenance expenses ($1,787 spread) and registration fees ($699 spread). Understanding these cost drivers helps explain why geography matters more than vehicle choice for total ownership expenses.

1
Insurance: The Biggest Variable
Auto insurance premiums account for the greatest variation in annual car ownership costs between states. Our analysis found premiums ranging from $902 in Virginia to $2,912 in Georgia, a $2,010 gap that exceeds other expense categories. Average car insurance costs by age and other factors create the largest spreads in total car ownership expenses across states.
2
Gas Costs: Geography and Supply
Annual fuel expenses range from $764 in Montana to $2,687 in Delaware based on our calculations using Federal Highway Administration vehicle miles data and AAA state gas prices. This fuel cost difference of $1,923 impacts total ownership costs considerably. Price differences largely reflect state-specific factors including proximity to refineries, fuel taxes and distribution costs.
3
Registration Fees: State-Specific Structures
Registration costs vary from $20 in Georgia to $719 in Mississippi based on CarEdge data. Registration fee structures differ fundamentally across states. Colorado, Arizona and California base fees on vehicle value, creating higher costs for newer vehicles, while states such as Tennessee, Ohio and Virginia charge minimal flat fees regardless of vehicle characteristics.
4
Maintenance and Repair Costs
Car maintenance costs vary by state based on how much residents actually drive. Using AAA's rate of 11.04 cents per mile, annual maintenance expenses range from $784 in Montana to $2,571 in Delaware. Montanans drive just 7,105 miles annually, while Delawarians log 23,290 miles per year. This 228% mileage difference translates to about $1,787 more in annual maintenance costs for Delaware drivers.

States with below-average mileage benefit from lower maintenance expenses. Montana ($784), Washington ($916) and South Dakota ($938) all see reduced costs due in part to shorter average driving distances. Conversely, states with longer average commutes and higher annual mileage like Delaware ($2,571), Mississippi ($2,064) and New Mexico ($1,685) pay more as residents drive longer distances for work, shopping and daily activities.

Strategies to Reduce Car Ownership Costs

You can reduce annual expenses regardless of where you live.

Shop Insurance Annually. Insurance premiums vary widely between providers for identical coverage. Get quotes from at least three insurers every year and compare the best car insurance companies to find competitive rates. In high-cost states like Georgia ($2,912 average) and Maine ($2,827 average), switching insurers can save $500 or more annually.

Bundle Policies. Combining auto and homeowners or renters insurance with one carrier usually yields 15% to 25% discounts. In states with $2,000+ annual premiums, bundling can save $300 to $500 per year.

Improve Your Credit Score. In most states, insurers use credit-based insurance scores to set rates. Improving credit from "fair" to "good" can reduce premiums by 10% to 20%, saving hundreds annually.

Drive Less When Possible. Some insurers offer usage-based or pay-per-mile policies rewarding low-mileage drivers. If you work from home or use public transit, these programs can cut costs. Reducing your annual mileage from 15,000 to 10,000 miles saves about $552 annually on maintenance alone at 11.04 cents per mile.

Choose Fuel-Efficient Vehicles. In high gas-cost states, vehicle choice matters. Switching from a vehicle averaging 20 MPG to one getting 35 MPG in a high-cost state like Delaware can save more than $1,000 annually on fuel.

Factor Costs Into Relocation Decisions. If you're relocating for work or lifestyle, car ownership statistics show location greatly impacts expenses. Moving from Delaware to Iowa saves $4,191 annually ($20,955 over five years).

Methodology

MoneyGeek calculated total annual car ownership costs in all 50 states by combining four expense categories:

Registration Fees: Average annual vehicle registration costs compiled by CarEdge, representing modeled costs drivers usually pay in each state.
Auto Insurance: Insurance premium data represent average annual costs for full coverage (liability, comprehensive and collision) for a 40-year-old driver with good credit and a clean driving record. Data come from MoneyGeek's proprietary insurance analysis for 2025 to 2026.
Gas Costs: We calculated annual fuel expenses from Federal Highway Administration 2023 Vehicle Miles Traveled data (FHWA Highway Statistics, tables MV-1 and VM-2) paired with state-specific average gas prices from AAA. Calculations assumed average fuel economy of 25.4 MPG based on EPA on-road fleet averages.
Maintenance and Repairs: We calculated state-specific maintenance costs using AAA's 2025 rate of 11.04 cents per mile applied to each state's average annual mileage from Federal Highway Administration data. This methodology accounts for the reality that drivers in states with longer commutes pay more for routine maintenance, repairs and tire replacement. While actual car maintenance costs vary by vehicle type, age and driving conditions, this method provides consistent state-to-state comparisons that reflect real driving behavior.

Complete State Rankings: Most to Least Expensive

For quick reference, here is the full rank order by total annual cost:


50	Delaware	$7,452	$45	$2,149	$2,687	$2,571
49	Georgia	$5,943	$20	$2,912	$1,450	$1,561
48	New Mexico	$5,474	$60	$2,160	$1,569	$1,685
47	Maine	$5,351	$40	$2,827	$1,233	$1,251
46	California	$5,344	$524	$1,861	$1,801	$1,158
45	Mississippi	$5,165	$719	$1,310	$1,072	$2,064
44	Arizona	$4,985	$564	$1,628	$1,439	$1,354
43	Florida	$4,950	$297	$1,963	$1,288	$1,402
42	North Carolina	$4,911	$370	$1,435	$1,524	$1,582
41	New York	$4,856	$146	$1,388	$1,714	$1,608
40	Missouri	$4,680	$57	$1,472	$1,482	$1,669
39	Colorado	$4,661	$595	$1,754	$1,110	$1,202
38	Indiana	$4,572	$38	$1,189	$1,647	$1,698
37	Massachusetts	$4,547	$60	$1,802	$1,365	$1,320
36	Alabama	$4,492	$393	$1,245	$1,354	$1,500
35	Utah	$4,442	$57	$1,799	$1,254	$1,332
34	Connecticut	$4,415	$180	$1,745	$1,262	$1,228
33	Vermont	$4,351	$78	$1,524	$1,416	$1,333
32	Louisiana	$4,277	$64	$1,580	$1,233	$1,400
31	New Jersey	$4,241	$271	$984	$1,508	$1,478
30	New Hampshire	$4,150	$51	$1,826	$1,140	$1,133
29	Hawaii	$4,090	$78	$1,620	$1,460	$932
28	South Carolina	$4,059	$40	$1,518	$1,196	$1,305
27	Texas	$4,009	$74	$1,233	$1,265	$1,437
26	Kansas	$4,007	$80	$1,162	$1,292	$1,473
25	Oregon	$3,999	$169	$1,599	$1,232	$999
24	Nevada	$3,999	$49	$1,320	$1,449	$1,181
23	Wisconsin	$3,985	$85	$1,326	$1,216	$1,358
22	Wyoming	$3,984	$616	$1,038	$1,110	$1,220
21	Oklahoma	$3,941	$100	$990	$1,306	$1,545
20	Minnesota	$3,936	$69	$1,652	$1,072	$1,143
19	Arkansas	$3,898	$28	$1,373	$1,159	$1,338
18	Tennessee	$3,893	$29	$1,269	$1,226	$1,369
17	Nebraska	$3,811	$83	$1,346	$1,155	$1,227
16	Maryland	$3,810	$187	$908	$1,401	$1,314
15	West Virginia	$3,764	$52	$1,305	$1,205	$1,202
14	Kentucky	$3,746	$26	$1,389	$1,115	$1,216
13	Alaska	$3,662	$245	$1,278	$1,180	$959
12	Pennsylvania	$3,635	$39	$1,376	$1,162	$1,058
11	Michigan	$3,608	$128	$1,193	$1,161	$1,126
10	Rhode Island	$3,585	$58	$1,407	$1,070	$1,050
9	Virginia	$3,481	$36	$902	$1,284	$1,259
8	South Dakota	$3,479	$122	$1,559	$860	$938
7	Illinois	$3,467	$151	$952	$1,208	$1,156
6	Washington	$3,437	$73	$1,162	$1,286	$916
5	North Dakota	$3,434	$123	$1,264	$969	$1,078
4	Ohio	$3,388	$31	$1,078	$1,120	$1,159
3	Idaho	$3,315	$126	$983	$1,112	$1,094
2	Montana	$3,271	$237	$1,486	$764	$784
1	Iowa	$3,261	$333	$1,009	$906	$1,013

About Myryah Irby

Myryah Irby is a writer and data journalist with a master's degree in creative writing from the University of San Francisco. She analyzes insurance, housing and personal finance data for readers making major financial decisions. Her writing and interviews have appeared in The New York Times and The San Francisco Chronicle.

Irby has managed home improvement and insurance website portfolios for more than a decade. She breaks down complex insurance and finance topics into clear, actionable guidance.

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sources

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AAA. "Gas Prices." Accessed February 6, 2026.
AAA. "Your Driving Costs 2025." Accessed February 6, 2026.
CarEdge. "Car Registration Fees by State. ." Accessed February 6, 2026.
EPA. "Highlights of the Automotive Trends Report." Accessed February 6, 2026.