DENVER (KDVR) — Colorado has become more expensive to live in over the past few years from house prices to the cost of rent and other living expenses, but it has also become a pricey place to own a car.
According to a study from Forbes Advisor, Colorado ranks among the top five most expensive states to own a car. The publication used gas prices, car repair costs, car insurance rates and monthly auto loan payments to rank the nation’s most expensive to least expensive states to own a car.
While California and Nevada tied for first place, Colorado came in third with a 96.53 score in the metrics test conducted.
Here are the stats from the study for the top 10 most expensive:
|Rank||State||Score out of 100||Annual car insurance rate||Monthly auto loan payment|
The state ranks as the fifth-highest for gas prices in the country, while the average annual cost of insurance is nearly $2,500.
Gas prices in Colorado have increased in the last few months as a result of the Suncor refinery shutdown at the end of last year. An Energy Information Center report showed gas prices increased 51% since the shutdown. The plant is expected to be fully functional by the end of March.
How the study was conducted
According to the site, Forbes Advisor used the following data from each of the 50 states to determine the test scores with each metric accounting for 25% of the score:
- Cost of regular gasoline: Data for this metric comes from AAA and was collected on Feb. 24
- Average car repair cost: This metric includes the cost of parts and labor for a check engine light-related car repair. Data for this metric comes from CarMD and is from 2021.
- Average annual cost of full coverage car insurance: This metric includes full coverage car insurance rates from Quadrant Information Services based on liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability), uninsured motorist coverage and collision and comprehensive insurance with a $500 deductible
- Average monthly auto loan payment: Data for this metric comes from Experian and is from 2022
The least expensive states to own a car are respectively Ohio, Iowa, and Wisconsin, with New Hampshire and Maine tied for 46th place.
Forbes Advisor’s suggestions to save money on the cost of owning a car are:
- Reduce gas usage
- Research and compare car insurance prices before buying a new car or on existing car
- Regularly maintain your vehicle
- Research and review insurance coverage
- Consider a higher deductible to lower cost
Whether you already own a car or are in the market to buy a new car, you can use these tips to help lower your cost of having a vehicle in the Centennial State.