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NAIC Issues Auto Insurance Cost Data, New Jersey Officials Complain

Insurance regulators in New Jersey are expressing displeasure with the annual auto insurance cost survey put out by the National Association of Insurance Commissioners (NAIC)....
August 5, 2003

Insurance regulators in New Jersey are expressing displeasure with the annual auto insurance cost survey put out by the National Association of Insurance Commissioners (NAIC). The NAIC State Average Expenditures and Premiums for Personal Automobile Insurance ranked the Garden State as the most expensive state in the nation for personal auto coverage. Mary Caffrey, assistant commissioner for public affairs at the New Jersey Department of Banking and Insurance, said the survey contributes to an unstable auto insurance market in New Jersey by creating a political climate in which needed rate increases are not approved. John Tiene, president of the Insurance Council of New Jersey, a trade association whose member companies write 96% of the auto business in the state, told A. M. Best the survey is "absolutely misleading" and "laughable." Tiene said the NAIC notes how many flaws the survey has and then goes ahead and publishes it anyway.

Analysts say a comprehensive auto insurance reform bill, backed by PIA of New Jersey and signed in June by Governor James McGreevey, could help when it goes into effect January 1, 2004.

Auto Insurance Cost Top 10:

States with the highest average expenditures for private-passenger auto insurance in 2001 were:

1. New Jersey

$1,027.71

2. New York

$1,014.96

3. District of Columbia

$1,011.76

4. Massachusetts  

$936.01

5. Connecticut  

$912.19

6. Rhode Island 

$880.06

7. Nevada   

$851.15

8. Delaware

$850.56

9. Louisiana

$838.96

10. Alaska 

$826.10

States with the lowest average expenditures for private-passenger auto insurance in 2001:

North Dakota

$497.79

South Dakota

$510.42

Iowa

$512.66

Idaho

$523.38

Wyoming

$527.63

Maine

$545.42

Nebraska

$553.83

Kansas

$555.90

North Carolina

$564.76

Montana

$572.06

(Source: NAIC)