Inflation in the Los Angeles area increased 0.1% in May 2024, with an overall increase of 3.9% over the past 12 months. The all items less food and energy index rose 0.2% in May, and 3.8% in the past twelve months.
Nationwide, the rate of inflation for May was 0%, while the rate of inflation over the twelve-month period ending in May was 3.3%, according to the latest Consumer Price Index (CPI) summary. Motor vehicle insurance was listed among indexes that experienced "notable increases" over the last year at 20.3%.
Car insurance costs have risen 45.8% since Dec. 2021, Unusual Whales reported. Auto insurance costs are a minor factor in the CPI, with a 2.85% weighting.
A report from the National Association of Mutual Insurance Companies (NAMIC) found that legal system abuse is making insurance coverage more expensive for all policyholders. Practices such as third-party litigation funding are contributing to a larger volume of lawsuits, which forces businesses to raise their prices, effectively passing litigation costs onto consumers.