The increase in motor vehicle insurance over the month was August was three times faster than the national inflation rate.
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.
While politicians including U.S Sen. Elizabeth Warren (D-Mass.) have blamed rising insurance costs on climate change and corporate greed, according to the Wall Street Journal, higher insurance costs are being driven primarily by a combination of inflation, excessive litigation, and “government-made” issues. While weather-related events such as wildfires are causing some damage, the higher costs of insurance can often be tied directly to litigation and the role of trial attorneys.
Rising insurance costs due to excessive litigation are particularly impacting low-income Californians, who are already grappling with high inflation, the Northern California Record previously reported. Car insurance costs increased by 24% last year and are projected to rise another 7% in 2024. Due to these rising costs, low-income California families are struggling to afford basic expenses.