Motor vehicle insurance rates increased by 1.2% in July, higher than the national average inflation rate of 0.2%, according to the latest Consumer Price Index (CPI) summary from the U.S. Bureau of Labor Statistics.
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%.
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.
Other indexes that increased in the month of July include shelter, household furnishings and operations, education, recreation, and personal care.
A report from the U.S. Chamber of Commerce Institute for Legal Reform (ILR) found that a rising number of nuclear verdicts, or verdicts larger than $10 million, is contributing to increasing insurance costs. These large verdicts are referred to as “nuclear” due to the “devastating” effect they can have on “businesses, entire industries, and society at large,” according to the report.
Nuclear verdicts can “undermine fundamental fairness and predictability in the rule of law” while also making goods and services more expensive. Nuclear verdicts make insurance more expensive, and in some cases, make insurance coverage harder to attain.
Nevada drivers are paying 44% more than the national average for full coverage car insurance, according to MarketWatch.
