The latest Consumer Price Index (CPI) report confirms that motor vehicle insurance costs remain a major contributor to inflation in the United States, rising 11.1% over the past year, according to the Bureau of Labor Statistics. According to the Bureau: 

The index for all items less food and energy rose 3.1 percent over the past 12 months. The shelter index increased 4.2 percent over the last year, the smallest 12-month increase since December 2021. Other indexes with notable increases over the last year include motor vehicle insurance (+11.1 percent), medical care (+2.9 percent), recreation (+1.8 percent), and education (+3.7 percent).

USA Today noted the rising cost of auto insurance:

“After easing significantly last spring and summer following a pandemic-related spike, inflation began creeping up again in the second half of 2024 as the cost of services such as auto insurance, health care and dining out marched higher.”

Lawmakers nationwide should prioritize ending lawsuit abuse to reduce rising auto insurance rates and protect consumers, as Florida has successfully done.

ICYMI: Last month’s post on rising auto insurance costs.