The U.S. Bureau of Labor Statistics (BLS) released their Consumer Price Index (CPI) summary for March 2024 with a 22% increase in motor insurance rates nationwide. Motor insurance rates rose an average of 2.6% nationally in March. 

The report showed an overall increase of 0.4% Consumer Price Index for All Urban Consumers (CPIU) for the month of March, and inflation increased by an overall average of 3.5% nationwide in the last twelve months, according to the BLS.

The March report highlighted a 22.2% increase in car insurance rates over the past year, marking it as a notable increase within the overall inflationary pressures, according to the BLS. Auto insurance rates rose an average of 2.6% nationally in March. This surge in motor vehicle insurance is part of a broader trend where the index for all items less food and energy rose significantly, driven chiefly by a 5.7% rise in shelter costs.

Economists Neil Irwin and Courtenay Brown said the cost of car insurance coverage is “rising at unprecedented rates,” disrupting the “U.S. economy's disinflationary path.” Irwin and Brown shared their statement in an April 15 Axios newsletter.

The American Property Casualty Insurance Association (APCIA) testified to House Financial Services Committee in November that “legal system abuse” is one of the driving factors increasing insurance rates for consumers across the country.  Factors such as larger jury verdicts, third-party lawsuit financing, and widespread attorney advertising are escalating these costs, compelling businesses to increase prices to manage higher risks. APCIA advocated for tort reform legislation to mitigate these issues.