Owning a car is expensive everywhere, but geography can add thousands of dollars to the recurring costs of keeping one on the road. Insurance expenditures vary sharply by state, and gasoline costs depend not only on pump prices but also on how much residents drive.
Mokaram Injury Lawyers, a Houston personal injury law firm, investigates which states carry the heaviest recurring driving costs offers useful context for clients trying to understand their own exposure on the road.
To identify the most expensive states, this analysis combines two nationwide measures: the National Association of Insurance Commissioners' (NAIC) latest average annual auto insurance expenditure per insured vehicle, covering 2023, and the U.S. Energy Information Administration's (EIA) 2024 motor gasoline expenditure per capita. The 50 states were ranked by the combined total, with the highest figure ranked first. The District of Columbia was excluded because it is not a state.
Especially in light of rising gas prices, the calculation is best viewed as a comparison of major recurring driving costs, not a complete estimate of car ownership. It does not include vehicle purchase price, depreciation, financing, maintenance, repairs, parking, or registration. Those expenses can vary considerably by vehicle and individual circumstances.
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Car Ownership Takes a Larger Share of Household Budgets
Transportation is already one of the largest expenses in a typical household budget. The Bureau of Labor Statistics reported that U.S. consumer units spent an average of $13,318 on transportation in 2024. Transportation accounted for roughly 17% of average household expenditures.
AAA arrived at a similar conclusion from the vehicle side of the equation. Its 2025 Your Driving Costs study estimated that owning and operating a new vehicle averaged $11,577 per year, or about $965 per month, based on five years of ownership and 15,000 miles of annual driving. That calculation includes depreciation, financing, fuel, insurance, maintenance, repairs, tires, taxes, and registration.
Those national averages can hide large geographic differences. The NAIC found that average insurance expenditures ranged widely among states in 2023, while EIA data show substantial differences in gasoline spending from one state to another. Here are the 10 states where the two measures produced the highest combined recurring cost.
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1. Louisiana
Combined insurance and gasoline expenditure: $3,121
Louisiana narrowly takes the top spot. Average auto insurance expenditure reached $1,754 in 2023, second only to Florida among the 50 states. Motor gasoline expenditure averaged another $1,367 per person in 2024.
The NAIC cautions that insurance differences cannot be attributed to a single factor. State laws, coverage choices, traffic conditions, medical and legal costs, repair expenses, weather, and vehicle theft can all affect premiums and expenditures.
2. Florida
Combined insurance and gasoline expenditure: $3,119
Florida finishes only about $2 behind Louisiana under this methodology. Its $1,865 average insurance expenditure was the highest among the states in 2023, while per-capita gasoline expenditure added $1,254.
The insurance side is particularly costly. Florida's average expenditure was about 45% above the nationwide figure of $1,282 reported by the NAIC.
3. Delaware
Combined insurance and gasoline expenditure: $3,017
Delaware is the only other state in the analysis to cross $3,000. Average insurance expenditure was $1,462, while motor gasoline spending was $1,555 per capita.
That illustrates why looking only at gasoline prices can be misleading. A state's annual fuel burden also reflects consumption. EIA's state gasoline expenditure measure incorporates both fuel price and consumption.
4. Alabama
Combined insurance and gasoline expenditure: $2,914
Alabama reaches fourth place for a different reason than Florida or Louisiana. Its average insurance expenditure was $1,081, below the national average, but its gasoline expenditure per capita was $1,833, ranking second among the states in 2024.
Only Wyoming recorded greater gasoline expenditure per resident. The difference shows how driving patterns can offset relatively moderate insurance costs.
5. South Carolina
Combined insurance and gasoline expenditure: $2,899
South Carolina's two major recurring expenses were both relatively high. Residents recorded $1,532 in gasoline expenditure per capita, while average insurance expenditure reached $1,367.
Neither measure alone put South Carolina at the top of its respective list. Together, however, they pushed the state into fifth place.
6. Nevada
Combined insurance and gasoline expenditure: $2,898
Nevada follows South Carolina by less than $2. Average insurance expenditure stood at $1,462 in 2023, and gasoline expenditure averaged $1,436 per capita the following year.
EIA also ranked Nevada sixth among the states and the District of Columbia for the price of motor gasoline on an energy-equivalent basis in 2024.
7. Georgia
Combined insurance and gasoline expenditure: $2,850
Georgia's average insurance expenditure of $1,555 was among the country's highest. Per-capita gasoline spending added another $1,295.
Insurance expenditure rose from $1,265 in 2019 to $1,555 in 2023, up about 23%. The national increase over the same period was about 19%, according to the NAIC.
8. Arizona
Combined insurance and gasoline expenditure: $2,844
Arizona combines $1,344 in average auto insurance expenditure with $1,500 in per-capita gasoline expenditure.
Fuel prices play a role. EIA ranked Arizona seventh for motor gasoline prices in 2024, behind Hawaii, Alaska, California, Washington, Oregon, and Nevada. Arizona's relatively high gasoline consumption adds to the annual expense.
9. Mississippi
Combined insurance and gasoline expenditure: $2,836
Mississippi is another state where fuel spending drives the ranking. Average auto insurance expenditure was $1,200, below the national average, but gasoline expenditure reached $1,636 per capita.
10. Michigan
Combined insurance and gasoline expenditure: $2,791
Michigan rounds out the top 10 with $1,444 in average insurance expenditure and $1,347 in per-capita gasoline spending.
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Why Geography Matters
A car's sticker price tells only part of the affordability story. Insurance, fuel, taxes, maintenance, and depreciation continue long after the purchase. Where a vehicle is registered and driven can change what that ownership ultimately costs.
For drivers, that means moving from one state to another can change the cost of keeping the same vehicle.
This story was produced by Mokaram Injury Lawyers and reviewed and distributed by Stacker.
