Massachusetts held steady as the fourth-most-expensive state for auto insurance in 2005, according to the most recent state-to-state data from the National Association of Insurance Commissioners.

New Jersey, which embraced a more competitive auto insurance system in 2003, saw its average auto insurance expenditure decline by 3.1 percent in 2005 compared to 2004. But New Jersey retained the distinction of being the most expensive state in the nation for auto insurance.

The average auto insurance expenditure in New Jersey was $1,184 in 2005, followed by the District of Columbia ($1,182), New York ($1,122), Massachusetts ($1,113), and Florida ($1,063).

The average expenditure in Massachusetts was unchanged from 2004. It was $1,052 in 2003, $984 in 2002, and $936 in 2001.

Massachusetts is the only state in the nation where regulators set all auto insurance rates. The average statewide premium in Massachusetts increased 2.5 percent in 2004 and declined 1.7 percent in 2005, 8.7 percent in 2006, and 11.7 percent this year.

Insurance Commissioner Nonnie S. Burnes has proposed allowing insurers to start setting their own rates, subject to state approval, on April 1. Burnes is expected to issue the final regulations for the move to competition next month.

Insurance companies who support the move to competition say rates will drop faster and further if they are able to set their own premiums.

Some of the states with the lowest level of auto insurance expenditures in 2005 were North Dakota ($554), Iowa ($555), South Dakota ($565), and Idaho ($583).

The state-by-state data often lags several years because of the difficulty in gathering data from states. In a statement accompanying yesterday's release of the data, the National Association of Insurance Commissioners said differences among states make state-to-state comparisons difficult.

"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 statement said.

Massachusetts drivers tend to pay more for auto insurance than residents of other states because they get in more accidents and buy more expensive cars. The state also requires drivers to purchase more coverage than drivers in other states.

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By Bruce Mohl, Globe Staff  

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