A report has shown that for yet another year, N.J. drivers are paying the highest premiums for coverage.
The results of the annual National Association of Insurance Commissioners (NAIC) study on the cost of auto insurance has now revealed, once more, that the average driver in New Jersey is paying more than motorists in any other state in the country.
The average amount that drivers paid for their policies in 2012 was an annual $1,220, higher than any other state.
This represents the third year in a row that drivers in New Jersey have been paying more for auto insurance than their equivalent counterparts in any other state across the country. The study takes into consideration all 50 states as well as the District of Columbia. In fact, Washington D.C. was found to be in second place, where drivers paid an average of $1,155 per year for their auto coverage.
In third place for the cost of auto insurance premiums was New York, where they paid an average of $1,152 per year.
On the complete opposite end of the scale was Idaho, where the average amount paid by motorists for car insurance was $535 per year. The average price paid by drivers across the country for their policies was $815. This was 49 percent lower than what New Jersey vehicle owners pay.
Department of Banking insurance spokesperson, Marshall McKnight, explained that there are a range of different reasons that New Jersey is appearing at the top of the list, one year after the next. He explained that “We are one of the most densely populated states in the nation,” adding that this means that “there are more cars and more accidents.”
McKnight also pointed out that drivers in New Jersey also frequently choose to purchase a higher level of coverage than the minimum legal requirement. In fact, approximately 70 percent of drivers choose to purchase the highest possible level of personal injury protection benefit in the state, which is $250,000.
With regards to states in which drivers buy this maximum auto insurance coverage, McKnight explained that “Only New York and Michigan have a higher number.”