Auto Insurance Prices Post Minimal Month-to-Month Increase

The latest edition of the Bureau of Labor Statistics (BLS) monthly report on price trends shows that the average price of motor vehicle insurance was a mere 0.1 percent higher in June when compared with May.

Changes in Price of Auto Insurance -May/JuneThe new Consumer Price Index (CPI) data indicate that June 2011 car insurance policy costs were 3.8 percent higher than in June 2010.

The average price for all goods measured in the CPI went in the opposite direction. The data for all goods showed a month-to-month decline of 0.1 percent.

[Check out “National Auto Insurance Rates Rise by One-Fifth of 1 Percent” to read the article on last month’s report]

About the BLS’s Motor Vehicle Insurance Price Index

The BLS publishes monthly CPI updates meant to track and give data on changes in inflation and the cost of consumer goods in America over time. The CPI data referenced here to compare auto insurance prices are representative of coverage costs for an estimated 87 percent of the U.S. population.

Policy-price data compiled in the CPI is collected from a sample of insurers in 87 pricing areas. Premium levels are determined by looking at a sample of 768 individual private passenger policies or quotes. The CPI actually tracks the costs of these policies over time. Changes reflect fluctuations in insurers’ premium-calculation formulas, as well as increases in state-mandated minimums for 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 Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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