NAIC: New Jersey Has Highest Car Insurance Premiums, Expenditures

New Jersey auto insurance has the priciest premiums, and the state is also where drivers spend the most on policies in the U.S., according to the National Association of Insurance Commissioners (NAIC).

In the NAIC’s latest report on average auto insurance costs, the Garden State unseated last year’s leader (Louisiana) as the state with the highest combined premium, meaning the average price for a policy with liability, comprehensive and collision coverage.

Louisiana had been atop the NAIC’s premium listings for three years in the row until the most recent report, released Monday.

The states with the highest average combined premiums were:

  1. New Jersey: $1,301.52
  2. Louisiana: $1,281.55
  3. Washington, D.C.: $1,273.89
  4. New York: $1,234.31
  5. Florida: $1,160.13

The NAIC also reported states’ auto insurance expenditures (what a driver spends on a policy) and the listing of states with the highest expenditures nearly mirrored the listing of states with the highest premiums:

  1. New Jersey: $1,183.95
  2. Washington, D.C.: $1,138.03
  3. Louisiana: $1,110.68
  4. New York: $1,108.64
  5. Florida: $1,090.65

Biggest Year-to-Year Jumps in Premiums are in Mass., Fla., Mich.

Nationwide, the average premium for a policy increased slightly, 0.46 percent, while expenditures saw a slightly larger uptick, 0.79 percent.

The largest year-to-year premium increase was in Massachusetts, where the average combined premium jumped more than 5.6 percent. Florida had the second-largest increase with a year-to-year jump of more than 4 percent, followed by Michigan, where the average jumped by more than 3.5 percent.

The largest year-to-year premium decrease was in Arizona, where the combined average premium dropped by more than 3.5 percent, followed by Nevada, where the average dropped by 2.8 percent.

NAIC: State-to-State Comparisons Difficult, Hinge on Many Factors

The NAIC said the annual report on states’ premiums and expenditures is published to “provide necessary information and analysis to insurance regulators, consumers and policymakers.”

The NAIC also said that directly comparing the data in one state to another is “difficult” because of the myriad factors that determine prices and costs of auto insurance, which is regulated at the state level.

“Many factors affect a state’s expenditures and premiums, including underwriting costs, driving locations, accident rates, traffic density, auto theft statistics, repair costs and state laws,” the NAIC said in a statement.

Industry regulators in New Jersey and Washington D.C. have said that higher population densities there play into premiums and expenditures for auto coverage.

About Charles Nguyen
Charles Nguyen is an enterprising journalist who reported for and the Desert Dispatch and was the editor in chief of the Guardian (the twice-weekly newspaper at the University of California, San Diego) before coming to Online Auto Insurance News.

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