The latest Consumer Price Index (CPI) report released today once again indicates that auto insurance continues to be a driving force behind inflation. According to the Bureau of Labor Statistics:

The motor vehicle insurance index rose 0.6 percent in April. … Other indexes with notable increases over the last year include medical care (+2.7 percent), motor vehicle insurance (+6.4 percent), education (+3.8 percent), and recreation (+1.6 percent).

Bloomberg highlighted, “Household furnishings, medical care and car insurance contributed to the core [inflation] increase.” Auto insurance inflation remains especially high despite other prices dropping. USA Today reported, “Prices for groceries, including eggs, used cars and airfares all fell sharply, while medical services and auto insurance and repairs continued to drift higher.”

Car insurance will continue to remain expensive until states properly address the broken legal system. States that have addressed lawsuit abuse with serious reforms like Florida have seen insurance prices subsequently fall. As former Florida Speaker Paul Renner recently wrote in the Wall Street Journal:

“Florida’s Office of Insurance Regulation announced in February that nearly two-thirds of automobile premiums are declining between 6% and 10.5% this year, depending on the insurer, with more decreases expected as filings continue. … My advice is simple: Make litigation and insurance rules fair, and watch as premiums come down.”