State insurance rates remain highest

BY DAVID SCHWAB

Star-Ledger Staff

The official results are in, and New Jersey motorists are again the losers.



New Jersey drivers paid $1,188 per car on average for auto insurance in 2003, the highest in the nation, according to a survey released yesterday.



It was the 15th time in the 17 years the Garden State topped all other states, according to the survey compiled by the National Association of Insurance Commissioners. New York and Washington, D.C., ranked second and third.



The report showed rates climbing at a slower pace, with the average auto insurance bill rising about 6.3 percent from 2002, compared with a jump of 8.25 percent the year before.



But New Jersey drivers continue to pay about 44 percent more than the national average, which was $821.



Government officials and industry representatives said they were not surprised New Jersey retained its top ranking, as rising automobile insurance rates have been a frequent complaint of New Jersey motorists and consumers for the past 30 years. But they said sweeping changes in 2003 under former Gov. James McGreevey that gave insurers more power to set rates have begun to make a significance difference by attracting more companies to New Jersey increasing competition.



Jaimee Gilmartin, a spokeswoman for the state Department of Banking and Insurance, said changes to New Jersey's insurance regulations provide motorists with "more options" and make it easier to obtain insurance. There are about 5.1 million vehicles insured in New Jersey.



But some industry experts disagreed.



"Rates are not going down," said John Dyke, chairman of the NJ Auto Agents Alliance, which represents about 500 insurance agencies. "More companies are coming into New Jersey because the premiums are high and the profits are high."



Rates are likely to remain higher in New Jersey than most other states because the Garden State is the nation's most densely populated and one of the most affluent, according to industry representatives.



There are a lot of vehicles in New Jersey, and motorists tend to drive expensive cars and choose a higher level of insurance coverage, they said.



"There are some facts that are never going to change," said Magdalena Padilla, president of the Insurance Council of New Jersey, which represents insurance companies.