Costs for motor vehicle insurance increased three time faster than the national inflation rate throughout the month of August.
That’s according to the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics.
Motor vehicle insurance costs increased by 0.6 percent throughout the month of August, compared to the national average inflation increase of 0.2 percent.
Similarly, car insurance costs have risen 16.5 percent over the last 12 months, while the average inflation rate increased by 2.5 percent over the same time period.
Other indexes that increased in August of this year include shelter, airline fares, education, and apparel.
Insurify found that the average cost of car insurance rose by 14% during the first six months of this year, leaving Americans paying an average of $2,329 for full coverage car insurance, according to the report. In Nevada, drivers pay $3,271 for full coverage car insurance, making it the fourth most expensive state in the country behind Maryland, South Carolina, and New York. By the end of 2024, Insurify projected that Nevadans will be paying $3,531 for their car insurance.
Excessive litigation is contributing to Nevada’s expensive car insurance, according to a fact sheet from Nevadans for Fair Recovery, a political action committee (PAC). The PAC is backing a ballot initiative that would cap attorney contingency fees at 20%, meaning that plaintiffs would be guaranteed to keep 80% of their settlements or awards. By reducing the volume of excessive litigation in the state, the contingency fee cap could lower the extra costs imposed on Nevada residents.
