BLS: Price of Auto Insurance Rose Slightly from March to April

Price: auto insurance vs all items aprilThe latest edition of the Consumer Price Index (CPI) report released Friday shows that the price of motor vehicle insurance coverage in the United States rose only one-fifth of one percent between March and April.

The price of all items rose at three times that rate during the same period, according to the Bureau of Labor Statistics (BLS).

The new CPI report also indicated that the price of a policy in April 2011 was 3.8 percent higher than the price of a policy in April 2010.

[Check out “Car Coverage Prices Post Minimal Increase in March” to read our article about the previous month’s report]

About the BLS’s Motor Vehicle Insurance Price Index

Every month, the BLS publishes an update of its CPI, which is meant to track and give data on the price changes of consumer goods in America over time. The CPI data referenced by Online Auto Insurance News are representative of changes in the cost of coverage for an estimated 87 percent of the U.S. population.

The BLS collects its policy-price data from a sample of insurers from each of the 87 pricing areas used in the CPI. Prices of coverage are ascertained by looking at a sample of 768 individual private passenger policies or quotes. The CPI actually tracks the prices of these policies over time. Price changes reflect fluctuations in insurers’ premium-calculation formulas, as well as increases in state-mandated minimums for coverage.

Even during times of increases, consumers can maintain their access to cheap car insurance rates by adjusting things like deductibles, applying for new discounts or looking for new carriers, among other methods.

According to the BLS, “The major types of coverage included are collision, comprehensive, bodily injury liability, property damage liability, medical payments, uninsured motorist and personal injury protection.”

About Matthew Morisset
Matthew Morisset is a proud alumnus of the University of Redlands, where he obtained a degree in English Literature. Utilizing his passion for analysis and writing, Matthew looks for important trends in the auto insurance industry and their implications for consumers and the market as a whole.

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