Michigan: Most Expensive State to Drive a Car

The dings to your wallet don’t stop at the purchase price when you drive your new or used car off the lot. How hard those hits are for maintenance, gas and insurance depends on where you live. And Michigan — home to the American automobile industry — is the most expensive place in the United States to drive a car.

Ironic, isn’t it?

The folks at 24/7 Wall Street analyzed all 50 states, and this is how the Mitten State fared:

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.

• 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)
• Total operating cost: $4,678

The auto insurance issue is a thorny problem that has plagued car owners for decades. The Oakland Press recently laid out all the pieces of this problematic puzzle.

Michigan lawmakers, on their summer recess, have two pieces of legislation to consider, Senate Bills 248 and 288.

At the heart of proposed reforms are the goals of lowering Michigan’s auto insurance premiums – among the highest in the country – while continuing to provide health care for people who suffer catastrophic brain or spinal injuries in auto accidents and require care beyond what auto insurance policies provide.

The least expensive state to own a car is Hawaii, according to 24/7 Wall St. Here are the next nine most expensive states in the U.S. to drive a car:

• Mississippi
• North Dakota
• California
• Maryland
• West Virginia
• Wyoming
• Louisiana
• Texas
• Georgia

» more via 24/7 Wall St.

CURIOUS HOW CAR INSURANCE RATES STACK UP ACROSS THE COUNTRY?

Check out this database via Insure.com.