The cost of auto insurance varies greatly by geographic region. Image: TheTruthAbout/Flickr/CC BY-SA
The expense of owning a car has just begun when you drive off the dealer’s lot. That is true even if you bought that sweet ride with cash. And keeping her fueled and legal over her lifetime differs by region, according to the new Automotive Misery Index.
Cost weighed in Automotive Misery Index
There is a vast difference in the cost of owning an auto, Brooklyn to Tuscon. Insurance and fuel costs vary greatly from region to region.
A new report by CarInsurance.com measures the geographical fluctuations of vehicle ownership costs by state. Its Automotive Misery Index determines rankings by comparing each state’s average household income against its average miles driven, cost of fuel and price of full-coverage insurance for a 2012 Honda Accord EX.
CarInsurance.com managing editor Des Toups explained in a press release:
“A new Honda Accord costs pretty much the same in Bakersfield or Biloxi. But keeping it on the road will hurt a lot more in Mississippi.”
Mississippi ranked the highest on the 2012 Automotive Misery Index. The lowest ranking — or least costly — state was determined to be New Hampshire.
Toups continued:
“Mississippi is a rural state, so people drive a lot. It also has the highest percentage of uninsured drivers, which makes car insurance that much more expensive.”
Meanwhile, New Hampshire has an average income more than 50 percent higher than in Mississippi. Its smaller area and denser population also makes for shorter commutes.
Data sources
The study, conducted by Quadrant Information Services, derived its household income numbers from the 2010 census. The annual mileage figures per driver came from the U.S. Bureau of Transportation Statistics. The average insurance rates were derived by averaging the costs of six different carriers in 10 zip codes from each states.
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Less Misérables
Here are the states with lowest Misery Index (least expensive):
Rank State Gas/Insurance Income Misery Index
1 New Hampshire $2,932 $65,948 4.40 percent
2 Alaska $2,765 $60,409 4.60 percent
3 Connecticut $3,266 $66,187 4.90 percent
4 Colorado $2,955 $58,647 5.00 percent
5 Washington $2,976 $58,821 5.10 percent
6 Massachusetts $3,087 $60,843 5.10 percent
7 New Jersey $3,301 $64,693 5.10 percent
8 Maryland $3,347 $64,635 5.20 percent
Most Misérables
Here are the states with highest Misery Index (most expensive):
Rank State Gas/Insurance Income Misery Index
42 Arkansas $3,411 $37,856 9.00 percent
43 Kentucky $3,860 $42,302 9.10 percent
44 Wyoming $4,828 $52,848 9.10 percent
45 Michigan $4,274 $46,597 9.20 percent
46 Georgia $4,268 $44,082 9.70 percent
47 Montana $4,005 $41,286 9.70 percent
48 West Virginia $4,292 $41,999 10.20 percent
49 Louisiana $4,504 $42,813 10.50 percent
50 Oklahoma $4,816 $45,018 10.70 percent
51 Mississippi $4,277 $36,821 11.60 percent
The study seems to ignore costs of repairs and regular maintenance, which of course jacks the costs up even more.
According to the study, however, the lower the state’s average income, the more expensive it is to own a car there. How ironic is that?