The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in April, after rising by 0.4% in March, and among the categories that contributed to the increase was motor vehicle insurance, which rose by 1.8% over the month. During March, motor vehicle insurance rose 2.6%.
The latest Consumer Price Index summary found that the cost of motor vehicle insurance rose 22.6% over the last year, according to the Bureau of Labor Statistics. Comparatively, the overall rate of inflation for the last year was 3.4%.
A report from Bankrate found that Georgia residents are paying more than the national average for car insurance. In Georgia, the average cost of car insurance is $2,610 each year, or 3.58% of the average income. Nationwide, the average cost of full coverage auto insurance increased by 26% last year.
According to a press release from the Insurance Information Institute (III), plaintiff attorneys are engaging in practices that result in a larger number of lawsuits and higher litigation costs and payouts. As a result of these tactics, car insurance costs are rising, exacerbating economic challenges for consumers.
“There are real costs behind what we all know and see plaguing our roads with promises of settlement dollars, as billboard attorneys are racking up fees, and consumers are found to be getting less and less,” Sean Kevelighan, III CEO, said in a statement. “The price of insurance is the effect, not the cause of risk, and there must be more work done to curb legal system abuse, as auto insurers – both personal and commercial – are seeing significant increases in claims costs when attorneys enter into the picture.”