The U.S. Bureau of Labor Statistics’s (BLS) Consumer Price Index (CPI) report shows an increase of 20.3% in the motor vehicle insurance index over the last twelve months, with the all items index increasing 3.3% during that time.
The index for motor vehicle insurance declined during the month of May, while the all items index remained unchanged.
Notable increases in the all items less food and energy index over the last twelve months include motor vehicle insurance, the shelter index with an increase of 5.4%, medical care costs which were up 3.1%, and personal care, which increased by 2.9% over the last twelve months.
Georgia drivers are paying an average of $2,554 annually for full coverage car insurance, more than the national average of $2,311, according to a report from Bankrate. Atlanta drivers pay 12% more than the statewide average.
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.