For several years, I have heard legislators, lobbyists, and regulators tell me that New Jersey auto insurance rates are dropping. I am sure every one of you has heard the same rhetoric. Well, according to the National Association of Insurance Commissioners (NAIC), all those smart folks are wrong. Private passenger auto rates did not go down, instead they went up.

According to the NAIC, the average car insurance premium in New Jersey is $1221. That places New Jersey as the highest state in the nation. Look at it this way: its good to be number one at something!

These numbers do not lie. The NAIC numbers are the most reliable figures available, coming from a reputable group of national top dogs. It always takes the NAIC at least a year-and-a-half to gather, review, and publish this data. They take their time. So, these numbers are the most recent, coming from 2004.

That year was the first full year of our auto insurance reform. During June of 2003, these new reforms were signed into law. And while the marketplace improved, the average premiums did not. Unfortunately, the rates went up from $1188 in 2003, to $1221 in 2004. So, the top prize winners (or losers) for 2004:

New Jersey$1221

Dist. of Columbia$1185

New York$1172

Massachusetts$1113

Louisiana (tie)$1062

Florida (tie)$1062

Rhode Island$1034

Delaware$1022

The national average premium is $838.

And what about all those billboards, T.V. commercials, and radio ads touting car insurance savings? Save 15 percent? Save $325? Are they all wrong? How can everyone say there are premium savings, yet the average premium goes up? Maybe thats yet another column.

Anyway have a great Holiday season and a Happy New Year.