This post is Part One of a three-part series discussing Las Vegas transportation costs. Next week’s post will offer suggestions on reducing transportation cost, followed by a third post discussing public transportation in Southern Nevada.
Most people moving to Las Vegas will see a spike in private transportation costs. Housing expenses are heavily determined by personal choice (rent vs. buy, size, location) and most will not see a major difference in food and entertainment prices, but most new residents will see a dramatic increase in the cost of maintaining a car, even if their vehicle and driving habits remain the same from their previous abode.
What are these increased costs and why are they higher than the Midwest and South?
Auto Insurance
My auto insurance increased by over 60% when I moved from Ohio to Las Vegas. This is due to several factors. Las Vegans tend to drive more expensive cars than anywhere else in the United States outside of Los Angeles, so the odds that the other car involved in an accident costs $60,000+ are greater here than elsewhere. There are also a high number of DWIs written in Clark County. The percentage of accidents that lead to litigation is also greater in Nevada. And the worst problem, due to high insurance costs and high DWIs, is a higher number of drivers out on the Las Vegas roads who don’t have insurance and may even be sans a driver’s license.
Car Tax
We don’t have any state income taxes in Nevada, but we do have an annual car tax that can run upwards of $2,500 per year based on the value and age of the car. For example, a Nevadan driving a $60,000 car purchased (or leased) this year will pay approximately $1,100. Driving a car (like mine) purchased in 2013 for $28,000 costs $254. All fees must be paid upfront before you can obtain or renew the annual registration on your car. Check out dmvapp.nv.gov/dmv/vr/vr_estimate/VREstimationInput.aspx to get quote on your current or future car.
Gas
The lack of state income taxes is also made up in higher gas taxes. Nevada currently increases the cost of a gallon of gas by 33.78 cents, the 17th highest gas tax in the country. That, combined with fuel transportation costs (there are no refineries nearby), makes Nevada gas the fourth most expensive in the country.
Public Transportation
Of course, the costs of owning a car are higher in New York or Boston or San Francisco (due primarily to monthly parking fees), but that situation is negated by those cities’ public-transportation options. When I lived in New York, I didn’t own a car, and neither did many of my friends. Some have never even had a driver’s license.
Though the Regional Transportation Commission system has improved considerably over the last few years, most residents aren’t familiar with it, nor would it allow them to go carless even if they were.
What can Las Vegans do about the high cost of driving? Next week, I’ll have a few suggestions.
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Gas cost and gasoline tax per gallon is a big deal!
My insurance cost would be about the same as well as the registration fees.
I NEVER drive after drinking.
The summer sun bakes cars rubber and plastics to the point of potato chip brittle.
Air conditioning is a mush-have witch costs extra fuel to operate.Usually 2 MPG’s.
It is also used in the winter time.
I’ll need a garage or at least a canopy to protect my car.
Yes,it’s expensive to drive a car in any city.