Least Expensive Places to Own A Car in the U.S.

Where you live can be the difference between paying $869 for auto insurance and $5,000 or more for insurance. While auto insurance companies also consider age, driving record, and usage, where you live is one of the biggest factors insurance companies consider when determining rates.

Several major issues auto insurance companies have with certain areas include crime rate and population. For example, Detroit Michigan has a population of 1,027,974. It is an urban area with a high crime rate and a higher density of traffic than most cities. Because of this, Detroits average annual auto insurance premium for is around $5,162. This amount includes: liability, collision, and comprehensive coverage. Eau Claire, Wisconsin, on the other hand, has a  population of around 98,286. This small city reported 75 car thefts in 2006 compared to Detroits more than 5,000. Not surprisingly, Eau Claire is the least expensive place in the U.S. to own a car. Eau Claires average annual auto insurance premium for liability, collision, and comprehensive coverage is currently around $869.

Maintenance, state taxes, fuel, and even depreciation, also play an important role in how much or how little it will cost to own and operate a vehicle in any given area of the U.S. Maintenance vary from state to state as well as taxes, so a person living in say, Hawaii ($3,705) may spend around $3,705 in maintenance costs each year, while a motorist in California may spend around $4,335. This adds up to a significant difference of $630 per year. Taxes and fees can add up to thousands more in places such as Nevada, currently at $4,036, than in places such as Alaska currently at $538.

Based on insurance costs alone, the five least expensive places to own a car include:

1.    Eau Claire, WI ($869)
2.    Norfolk, VA ($954)
3.    Raleigh, NC ($966)
4.    Bismarck, ND ($989)
5.    Burlington, VT ($1,001)

When we add taxes and fees, depreciation, finance and interest, fuel costs, maintenance, and repairs, the list looks a little different. Please note that the most reliable figures are determined using data collected at the state level. With the exception of the top five or so least expensive cities for auto insurance, data for most cities is scarce. The vast majority of detailed studies have only been done at the state level.

The top ten least expensive states to own a car based on taxes & fees, repairs, maintenance, auto insurance, fuel costs, finance & interest, and depreciation
include:

1. New Hampshire ($47,499)
Taxes & Fees $250
Repairs: $829
Maintenance: $3,276
Fuel Costs: $13,216
Finance & Interest: $5,213
Depreciation: $18,305
Auto Insurance: $6,507
Cost to Own Total: $47,499

2. South Dakota ($49,483)
Taxes & Fees: $1,757
Repairs: $914
Maintenance: $3,633
Fuel Costs: $13,308
Finance & Interest: $5,929
Depreciation: $18,305
Auto Insurance: $5,638
Cost to Own Total: $49,483

3. South Carolina ($49,515)
Taxes & Fees: $407
Repairs: $855
Maintenance: $3,454
Fuel Costs: $12,719
Finance & Interest: $5,338
Depreciation: $18,037
Auto Insurance: $8,705
Cost to Own Total: $49,515

4. Oregon ($50,268)
Taxes & Fees: $159
Repairs: $981
Maintenance: $3,781
Fuel Costs: $13,280
Finance & Interest: $5,865
Depreciation: $18,316
Auto Insurance: $7,885
Cost to Own Total: $50,268

5. Wisconsin ($50,417)
Taxes & Fees: $1,994
Repairs: $1,061
Maintenance: $4,115
Fuel Costs: $13,396
Finance & Interest: $5,614
Depreciation: $18,282
Auto Insurance: $5,956
Cost to Own Total: $50,417

6. North Dakota ($50,515)
Taxes & Fees: $2,009
Repairs: $871
Maintenance: $3,499
Fuel Costs: $13,332
Finance & Interest: $5,854
Depreciation: $18,305
Auto Insurance: $6,645
Cost to Own Total: $50,515

7. Massachusetts ($50,970)
Taxes & Fees: $3,283
Repairs: $812
Maintenance: $3,300
Fuel Costs: $13,240
Finance & Interest: $5,487
Depreciation: $18,208
Auto Insurance: $6,640
Cost to Own Total: $50,970

8. Georgia ($51,103)
Taxes & Fees: $3,217
Repairs: $914
Maintenance: $3,666
Fuel Costs: $13,202
Finance & Interest: $5,712
Depreciation: $18,037
Auto Insurance: $6,355
Cost to Own Total: $51,103

9. New Mexico ($51,157)
Taxes & Fees: $2,216
Repairs: $1,036
Maintenance: $4,055
Fuel Costs: $12,765
Finance & Interest: $5,916
Depreciation: $18,229
Auto Insurance: $6,940
Cost to Own Total: $51,157

10. Ohio ($51,234)
Taxes & Fees: $2,339
Repairs: $914
Maintenance: $3,663
Fuel Costs: $13,311
Finance & Interest: $5,814
Depreciation: $18,174
Auto Insurance: $7,019
Cost to Own Total: $51,234

Sources

Forbes: http://www.forbes.com
Insurance Information Institute: http://www.iii.org/

Michelle Burton is a published author and contributing editor for Auto Insurance Tips, Trouvé Media, Internet Brands, and Publications International, Ltd.