N.J. Auto Insurance Expense Remains At Top

New Jersey automobile insurance remained the highest in the nation 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 of Insurance Commissioner's 2004/2005 Auto Insurance Database Report released today covering rates and expenditures from 2001 through 2005.

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

The state expenditure is an estimate of what consumers in the state, 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 the combined liability, collision and comprehensive coverages, divided by the liability written car years (exposures) in that state. A car year is 365 days of insurance coverage on a single vehicle.

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

According to the report, Washington, D.C. consumers paid only $2 less than New Jersey drivers. In 2004, the gap was $36. Washington ranked 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, no change from 2004; Louisiana was fifth at $1,076, a 1 percent increase in cost over 2004; and Florida was sixth at $1,063, a $1 increase over 2004.

Rhode Island, Delaware, Connecticut and Nevada rounded out the top 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 States stood at $829--a cost decrease of more than 1 percent over 2004.