Cost of Car Insurance Jumped Nearly 1 Percent in November

2010 changes in average cost of coverage--November

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The average price for American motor vehicle insurance rose by an estimated .9 percent in November from the previous month, according to the latest Consumer Price Index report from the United States Bureau of Labor Statistics.

November 2010 prices for motor vehicle coverage are an estimated 5.3 percent higher than the November 2009 prices.

About the Motor Vehicle Insurance Consumer Price Index (CPI)

Every month, the Bureau of Labor Statistics (BLS) publishes an update of its CPI, which is meant to track and give data on the price changes of consumer goods 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, and price changes due to fluctuations in insurer premium-calculation formulas are reflected in the CPI data, as are changes caused by increases in state-mandated minimums for car 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 John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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