ATLANTA — Insurance premiums, repair costs and taxes. The costs of owning a car can quickly add up, but depending on where you live, the costs can be even higher.
Channel 2 Washington Correspondent Nicole D’Antonio took a look at what’s driving up costs across the nation for drivers, and what’s making it those costs far above the rest for Georgians.
In Georgia, a review of hidden fees and costs for car owners from Bankrate found that the state has higher hidden costs than anywhere else in the country.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
According to the Bankrate study, Georgia’s costs for car ownership can add up to more than $8,000 a year.
For the rest of the U.S., the average is about $6,600.
Normally, families focus on down payments or monthly bills when buying a car.
But other costs for owning a car can also add up.
TRENDING STORIES:
- Surveillance video shows fight turn into deadly shooting at DeKalb gas station
- State Attorney General demands answers in College Park City Council meeting incident
- Community calls for peace after 3 teens, 2 women were shot at Atlanta park over the weekend
Bankrate says the cost of owning a vehicle in the United States has climbed to $6,684 per year on average, and even higher in Georgia, where costs are $8,249 per year.
“As a former insurance agent, I want people to keep this report in mind in time for their next vehicle purchase,” Shannon Martin, at Bankrate, told Channel 2 Action News. “Because we are with cars for about eight years. We keep them for a long time and it’s an emotional decision.”
The Bankrate study said one of the biggest drivers of costs for car owners is insurance, where premiums have gone up by close to 20% from 2022 to 2024.
Broken down by month, Georgia drivers are reportedly paying as much as $687 per month for all car costs, while most Americans instead pay about $557 on average.
For insurance specifically, Bankrate said “Georgia is in the top group for higher average vehicle tax and averages $213 monthly for full coverage car insurance.” Costs in the state are also impacted by higher costs per hour for repairs.
“The per-hour labor rate used to be $25 or $30 hours, but now they charge over $100 per hour,” Benjamin Cadet, a Georgia resident and inside sales leader with Accenture, said. “The roads here in Georgia are horrible, so I spend money on tires, shocks and struts because of the potholes and hills.”
Researchers point to inflation and the increasing costs of repairs and labor for the surge, with repair costs in 2024 45% higher than in 2020.
“Part of it has to do if we go back to the pandemic. How much the cost of labor has increased. Vehicle costs are also now so much more expensive,” Martin said.
For those trying to cut costs, keep in mind there are a lot of different factors that can impact auto insurance rates, like your credit score, what type of vehicle you’re driving and what your driving record is.
[SIGN UP: WSB-TV Daily Headlines Newsletter]
IN OTHER NEWS:
©2024 Cox Media Group
