BLS: Cost of Vehicle Insurance Continues to Climb

BLS auto insurance pricesAverage premium prices for car insurance rose about one-third of 1 percent between January and February, according to the latest report from the Bureau of Labor Statistics (BLS).

The price of coverage has risen almost every month for the past 12 months, amounting to an overall increase of about 3.7 percent.

The largest increases during that period came between September and November. During that time, average premium prices rose by a total of 2 percent.

Only one month-to-month drop has been recorded in the past 12 months. Between November and December, premium prices dropped by 0.3 percent.

About the BLS’s Motor Vehicle Insurance Price Index

Every month, the BLS publishes an update of its Consumer Price Idex, 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 motor vehicle insurance 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 automobile insurance coverage.

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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