The Most Expensive State To Own a Car Is…You Guessed It!

There’s no getting around it, owning a car isn’t cheap. Whether it’s gas, maintenance or insurance, owning a vehicle will set you back a pretty penny. But according to a new survey, Michigan is the costliest state in the nation to own a car.

Like we never noticed.

24/7 Wall Street looked at the cost of gas, repairs, maintenance and insurance for vehicles in all 50 states and determined that Michigan is the most expensive place to have a vehicle, with owners spending about $4,678 per year. (Remember this doesn’t include the cost of the car). On the flipside, Hawaii is the cheapest state for vehicle owners, with estimated expenses of about $3,310 a year.

Here's what they said about car costs in Michigan:

1. Michigan
> Total operating cost: $4,678
> No. of vehicles per 1,000 people: 828 (20th lowest)
> Avg. price of gas: $2.82 (13th highest)
> Avg. insurance premium: $2,476 (the highest)

As the epicenter of the nation’s auto industry, many vehicles in Michigan are not far from where they were manufactured. The proximity lowers sticker prices on new vehicles and likely contributes to cheaper car parts. On average, car repairs, including parts and labor, cost $354 in Michigan, the fourth least expensive nationwide. Overall operating costs, however, were not much lower at all. In fact, Michigan is the most expensive state in which to own a car, with the cost driven largely by high insurance premiums. The average annual car insurance premium was $2,476 in Michigan, the highest in the country. Michigan has a relatively unusual, no-fault auto insurance system. Car owners need to purchase personal injury protection insurance to ensure unlimited medical bills coverage for all parties involved in an accident. In addition, car owners pay an annual assessment fee of $186 per vehicle to the Catastrophic Claim Association — the fee is not included in the annual average insurance cost.

Not surprising, fuel costs make up the biggest expenses in all but five states, and in 35 states they make up more than 50 percent of the yearly operating costs, with the average gas expenditure at $1,840. Interestingly, it’s not because gas prices are always high that the expenses are high. In general, when gas prices are up, people don’t drive as much, but when they are lower they drive a lot, and thereby spend more on gas.

Car insurance was the next biggest expense at an average of $1,311 a year, with repairs and maintenance making up the smallest expense in every state.

Um, now you know why I ride my bike to work...

Do you own a car? What do you think is your biggest yearly expense? Do you sometimes wish you didn’t have to have a vehicle? Or are all those expenses worth it to you?

Are you someone who doesn’t own a car? Why? Do you ever wish you had one?