The prices of new vehicles are enough to give many consumers sticker shock, but one report lists Georgia as the state with the highest “hidden” costs for owning an automobile.
Bankrate says Georgia leads the nation in so-called hidden costs — including the costs of car insurance, taxes, fuel and maintenance — with drivers of new vehicles paying on average $8,249 per year in the Peach State.
Georgia ranks near the top for average vehicle taxes, the cost of full coverage for auto insurance and the cost of maintenance, according to Bankrate.
Georgia has relatively low pump prices per gallon. But because Georgians drive so much — given long commutes and a relative lack of transit — the Peach State also ranks near the top in the average fuel cost for auto owners. Georgians drive on average more than 17,500 miles per year, much higher than the national average, Bankrate found.
Many consumers start their car hunt knowing their budget for a loan or lease payment, but often aren’t as well-informed about other costs, such as insurance, fuel and maintenance, said Shannon Martin, a Bankrate insurance analyst.
“There are a lot of other costs that go into owning a car,” she said.
Bankrate found that the average annual hidden cost for Georgia drivers is nearly double that for drivers in New Hampshire ($4,299 per year), the state with the lowest hidden expenses.
Nationwide, the average hidden cost of car ownership is $6,684 per year, Bankrate said.
Given the variability of driver profiles and other factors, the Bankrate study compared the cost of ownership across states for a 40-year-old person with a clean driving record and good credit driving a 2022 Toyota Camry with full insurance coverage.
In Georgia, the average premium for full coverage for Bankrate’s example driver was $2,562 per year, more than $200 more than the national average.
Georgia law does not require full coverage, and many motorists rely on a less complete policy, putting more of the financial risk of an accident on themselves to lower their monthly costs. Still, Bankrate found Georgia drivers also pay more for minimum coverage — $861 per year — than the U.S. average of $633.
Overall, Georgia had the 13th highest rate for full vehicle insurance coverage, Bankrate found.
Martin said Georgia was not ranked the highest in any of its four categories, but ranked highly enough in all four to be the most costly for hidden expenses.
Motorists can help themselves, however, by shopping for insurance quotes ahead of time, choosing more fuel-efficient vehicles and picking automobiles that do not have so many bells and whistles that are costly to replace if they break.
Motorists “can’t really avoid state taxes but we want people to keep in mind these hidden costs before they purchase their next vehicle,” Martin said.
‘Hidden’ car ownership costs
States with the highest annual combined costs of taxes, maintenance, fuel costs and insurance:
1. Georgia: $8,249
2. Indiana: $8,221
3. Louisiana: $8,220
4. Florida: $8,197
5. Nevada: $7,886
National Average: $6,684
States with the highest costs for full insurance coverage:
1. New York: $3,697
2. Louisiana: $3,646
3. Florida: $3,451
4. Colorado: $3,259
5. Nevada: $3,074
13: Georgia: $2,562
National average: $2,329
States with the highest fuel costs when considering total miles driven per year:
1. Indiana: $2,913
2. Wyoming: $2,765
3. Missouri: $2,279
4. Georgia: $2,261
5. Mississippi: $2,244
National average: $1,837
States with the highest average maintenance costs:
1. Wyoming: $1,950
2. Indiana: $1,855
3. Mississippi: $1,675
4. Missouri: $1,658
5. Georgia: $1,649
National average: $1,336
Source: Bankrate
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