Inflation rates for motor vehicle insurance increased by 1.2% in July, according to the latest Consumer Price Index (CPI) summary from the U.S. Bureau of Labor Statistics, outpacing the national average inflation rate of 0.2% in July.
Over the last year, the all items index has increased 2.9% nationwide, according to the report. Motor vehicle insurance costs have increased 18.6% across the country in the same time frame.
Although the national inflation rate saw a decrease of 0.2% in the previous month of June, motor vehicle insurance costs still increased that month by 0.9%.
Other indexes that increased in the month of July include shelter, household furnishings and operations, education, recreation, and personal care.
According to an opinion from the Wall Street Journal editorial board, the "culprit" for rising insurance costs is a combination of inflation and excessive litigation. "Unscrupulous" trial attorneys who are filing large volumes of insurance-related lawsuits are forcing insurance providers to raise their costs for all policyholders.
California drivers are paying an average of $2,599 per year for full coverage car insurance, which is more than the national average, according to Bankrate.