California And Nevada Named The MOST Expensive States To Own And Run A Car
California and Nevada are the top two most expensive states to own a vehicle in the US, as per a recent report by Forbes. The two western states received a full score of 100 out of 100, jointly ranking at the top for the most expensive states for owning and running a car or vehicle. They are followed by Colorado, Florida, and Alaska, which occupy the third, fourth, and fifth ranks respectively.
At present, the gas prices in California and Nevada are the highest in the country, usually averaging between $4.24 and $4.76. The car insurance rates in these states are also very expensive and can reach up to $3,342 annually.
For car owners in California, the highest expense is gasoline, which is around $4.76 per gallon. The state also has the third-highest car repair cost in the US, averaging around $415.66. The annual rate of car insurance in the state, on the other hand, is around $2,462.
Nevada, however, surpasses California when it comes to car insurance rates. The state has an annual car insurance rate of $3,342. The car repair and gasoline expenses are slightly lower, costing around $398.26 (on average) and $4.24 (per gallon), respectively.
Colorado, which ranked number three with a score of 96.53 out of 100, had an annual car insurance rate of $2,489, while the average car repair costs reached around $417.14. Florida and Alaska, which occupied the fourth and 5th places on the list, both scored over 80 out of 100, according to the report.
Ohio ranked 50th per the report, making it the cheapest state to own a car in the US. The estimated car insurance rate in the state is around $1,112 annually. States including Indiana, Wisconsin, Nebraska, Kansas, and Iowa also ranked at the end of the list. All of these states have a low average car insurance rate costing below $2,000 annually. The report found that Iowa has the lowest insurance rate among all 50 states, costing car owners around $1,238 per year on average.
The highest car insurance rates are in New York, averaging around $4,769 annually. The overall rank of the state in the report is 14.
A report published earlier this year found that motor insurance premiums in the US are on the rise and are estimated to increase by 8.4% to reach an average annual cost of $1,780. This rate of increase is the highest in the past 6 years and is fuelled by the increasing prices of repairs and replacement parts.
As per the report, car owners in several states, including Michigan, Florida, Nevada, and Rhode Island, will be paying above-average car insurance rates. The stringent minimum insurance requirements in Michigan may push the annual insurance premiums to $4,788 on average – which is much higher than the estimated national average. The estimated insurance costs for Florida, Nevada, and Rhode Island are around $2,856, $2,592, and $2,748, respectively.
According to Orange County Car Accident Lawyers, drivers with traffic violation records usually have to pay a higher insurance premium in California and elsewhere. And the report states that such drivers may need to pay 50% more than they are already paying this year. People charged with DUIs will need to pay $3,281 more, while those with speeding tickets will have their premiums hiked by $2,194 on average.
However, owners of crossover SUVs will be at an advantage when it comes to insurance premiums since such vehicles are easier to repair or replace. Electric car owners, on the other hand, will be the worst affected by these hikes.