Car Coverage Prices Post Minimal Increase in March

Auto Insurance vs. All Items March ChartNew statistics released Friday by the U.S. Bureau of Labor Statistics (BLS) indicate that the price of insuring a motor vehicle rose only 0.1 percent between February and March.

The posted increase in the cost of car insurance was far outpaced by an increase in the price of all items tracked in the BLS’s Consumer Price Index (CPI), as has been the trend in 2011.

According to data included in the first three CPI reports this year, the cost of motor vehicle coverage has risen 0.47 percent since 2010. Meanwhile, the overall cost of all items tracked by the BLS has risen 1.5 percent.

The price of a motor vehicle policy in March 2011 was 4 percent higher than the price in March 2010, according to the BLS.

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 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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