The Average Cost Of Owning A Car In Florida

One thing to recognize when calculating how much it actually costs to live the American dream is that it can be heavily affected by what part of America you live in. That's true of housing costs — whether we're talking about housing or renting — employment opportunities, foreign investment, or state taxes. As one of the states with the best economies last year, Florida follows that rule, especially where, according to a new study by GoBankingRates, the cost of purchasing a car is concerned.

As per the study, the average cost of one-year of vehicle ownership in the state comes out to $27,235. That includes $2,248 per year spent on gas, and — thanks to having the second highest insurance premiums in the country — an average insurance expense of $2,694. A high 6% sales tax tacks an additional $2,923 onto the average cost of your new vehicle. Let's take a more in-depth look at a few of the factors, geographic or otherwise, that impact the cost of vehicle ownership in Florida.

As per GoBankingRates average cost of car insurance study, the national average for full auto insurance as of February 2025 is $2,670 per year. In general, that represents a jump of 31% from 2023, or an average $625 increase. As mentioned in the introduction, the average auto insurance in Florida is $4,143 according to the study, representing a difference of $1,473 per year. This is 56% higher than the national average. As per Insurance Business Mag, Florida took the number one spot for highest insurance premiums in 2024, and auto insurance premiums ate up 5.69% of the average Floridian's income.

Some factors behind the staggering rise in auto insurance in Florida include the higher incidents of accidents according to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). From January 2024 to November 2024, the FLHSMV recorded 380,189 car crashes. While they don't offer any reasoning for this, Florida boasts a dozen universities totalling over 300,000 students. Insurers consider young drivers between 16 and 25 years old at higher risk with higher premiums for a reason. Also, the impact of climate change on auto insurance rates can't be overstated in Florida, which has been battered so badly by hurricanes that insurers have either raised their rates by as much as 30%, or left Florida's insurance market altogether.

Florida is known to be something of a tax haven. However, although Florida won't tax your Social Security benefits and is one of a few states without income tax, it levies a 6% sales tax on the purchase of automobiles, including costs associated with freight, handling, and delivery of your vehicle, dealer commissions, accessories, administrative fees, or really, any other thing the dealer can legally charge you for. Even purchasing your vehicle in a state with a lower sales tax rate won't keep you from paying the tax. For instance, say you bought your vehicle in a state with a 3% sales tax and needed to register, license, or claim title for that car in Florida. The state of Florida will require you to provide documentation proving you've paid the equivalent 6% beforehand, or you'll have to pay the additional 3%. The only exemptions for this are if you're buying the vehicle for lease, resale, or to deliver to a buyer of the vehicle out of state.

Fuel can be expensive in Florida too. As per AAA, the national average cost of gas as of February 5th, 2025 is $3.12 per gallon, while in Florida, it's $3.21. Florida also applies a state tax on gas that has steadily dropped from 38.6 cents per gallon in 2024 to $3.06 as of February 2025.