Driving is a way of life in Los Angeles, but it comes at a steep price. A new study from Plasma One ranked L.A. as the 4th most expensive city in the U.S. to own a car, thanks to high insurance rates, expensive fuel, and hours lost in traffic.
The study analyzed the 100 largest U.S. cities using factors like annual auto insurance costs, fuel expenses, congestion, cost of living, and median income to determine where owning a vehicle is the most expensive.
Why Los Angeles ranked so high
Los Angeles earned the No. 4 spot with a total driving cost index score of 76.2. According to the study, the average driver in Los Angeles spends:
- $2,700 per year on auto insurance
- $2,876.54 on fuel annually
- $2,335.95 in estimated traffic-related costs each year
- Median income: $80,366
While L.A.’s median income is higher than many cities on the list, it isn’t enough to offset the city’s soaring driving expenses. Fuel costs are among the highest in the country, and daily traffic continues to add both time and money to commuters’ annual costs.
Most expensive cities to own a car
These are the 10 most expensive U.S. cities to own a car, according to the study:
- Philadelphia, PA
- New York, NY
- Chicago, IL
- Los Angeles, CA
- Houston, TX
- Seattle, WA
- Jacksonville, FL
- San Antonio, TX
- Washington, D.C.
- Nashville, TN
Other California cities also made the list, including San Francisco at No. 14 and San Diego at No. 15.
How the rankings were determined
Researchers analyzed the 100 largest U.S. cities. They compared insurance costs, fuel costs, traffic, cost of living, and median income.
Fuel costs were estimated using the average number of miles Americans drive each year. Traffic costs were based on the value of time lost in congestion.
Each factor received a weighted score. Cities were then ranked from most to least expensive. The data reflects conditions as of June 26, 2026.
