The U.S. Bureau of Labor Statistics’s (BLS) Consumer Price Index (CPI) report shows an increase of 3.3% in the all items index over the last twelve months, with motor vehicle insurance increasing 20.3% during that time.
During the month of May, the all items index remained unchanged, and the index for car insurance decreased.
Besides the motor vehicle insurance increase, other notable increases in the all items less food and energy index over the last twelve months include 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.
Nevada drivers are paying an average of $3,068 each year for full coverage car insurance, more than the national average of $2,311, according to Bankrate.
Nationwide, the cost of car insurance has increased by 46.2% since January 2020, according to the Wall Street Journal. Lawmakers such as Sen. Elizabeth Warren have said that climate change and corporate greed are causing rising insurance costs, but the “actual culprit” is a combination of inflation and lawsuit abuse. These factors are leading to rising insurance costs and pushing some insurers out of markets, leaving residents with fewer options.