The Bureau of Labor Statistics (BLS) on Wednesday released the latest monthly update to its Consumer Price Index (CPI) report, which indicates that Americans saw motor vehicle insurance prices in May that were 0.2 percent higher than in April.
According to the report, May 2011 car insurance policy costs were 3.8 percent higher than in May 2010.
The upward trends in premiums are similar to those of all items documented in the CPI. Between April and May, prices for all goods rose by about one-half of one percent. Between May 2010 and May 2011, the prices for all goods rose by about 3.6 percent.
[Check out "BLS: Price of Auto Insurance Rose Slightly from March To April" to read the article on last month's report]
About the BLS’s Motor Vehicle Insurance Price Index
The BLS publishes monthly CPI updates meant to track and give data on changes in inflation and the cost of consumer goods in America over time. The CPI data referenced here to compare auto insurance prices are representative of coverage costs for an estimated 87 percent of the U.S. population.
Policy-price data compiled in the CPI is collected from a sample of insurers in 87 pricing areas. Premium levels are determined by looking at a sample of 768 individual private passenger policies or quotes. The CPI actually tracks the costs of these policies over time. Changes reflect fluctuations in insurers’ premium-calculation formulas, as well as increases in state-mandated minimums for coverage.
According to the BLS, “The major types of coverage included are collision, comprehensive, bodily injury liability, property damage liability, medical payments, uninsured motorist and personal injury protection.”
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