New Jersey automobile insurance remained the highest in thenation in 2005 despite dropping 3 percent over 2004's figures,according to the nation's insurance regulators.

The finding was contained in the National Association ofInsurance Commissioner's 2004/2005 Auto Insurance Database Reportreleased today covering rates and expenditures from 2001 through2005.

The report shows that from 2004 to 2005, New Jersey's automobileinsurance expenditure by policyholders dropped 3 percent but wasstill the highest in the country at $1,184.

The state expenditure is an estimate of what consumers in thestate, on average, spent for auto insurance, the NAIC said.

The state average expenditure, as defined by the Kansas City,Mo.-based association, is the total written premium for thecombined liability, collision and comprehensive coverages, dividedby the liability written car years (exposures) in that state. A caryear is 365 days of insurance coverage on a single vehicle.

The NAIC said the formula assumes all insured vehicles carryliability coverage but not necessarily other coverage.

According to the report, Washington, D.C. consumers paid only $2less than New Jersey drivers. In 2004, the gap was $36. Washingtonranked as the second most expensive place in the country.

Rounding out the expenditures, New York ranked third at $1,122,a price drop of 4 percent; Massachusetts was fourth at $1,113, nochange from 2004; Louisiana was fifth at $1,076, a 1 percentincrease in cost over 2004; and Florida was sixth at $1,063, a $1increase over 2004.

Rhode Island, Delaware, Connecticut and Nevada rounded out thetop ten.

The least expensive state for auto insurance was North Dakota at$554--a drop in cost of almost 1.5 percent over 2004 there.

The average cost for insurance throughout the United Statesstood at $829--a cost decrease of more than 1 percent over2004.