The U.S. Bureau of Labor Statistic (BLS) reported that the Consumer Price Index (CPI) decreased by 0.1% in June, after showing no change over the month of May. Over the last year, the all items index has increased an average of 3% nationwide.
During June, the motor vehicle insurance index increased 0.9% despite having decreased by 0.1% in May. Motor vehicle insurance costs have increased 19.5% over the past twelve months, according to the latest report from the BLS.
Indexes for shelter, household furnishings and operations, medical care, and personal care also increased in the month of June. The food index increased by 0.2% throughout the month, while the all items less food and energy index increased by 0.1%.
The energy index saw a decrease of 2% during June. Electricity as well as both used and new car indexes also decreased during the month.
A report from the National Association of Mutual Insurance Companies (NAMIC) found that legal system abuse is making insurance coverage more expensive for all policyholders. Practices such as third-party litigation funding are contributing to a larger volume of lawsuits, which forces businesses to raise their prices, effectively passing litigation costs onto consumers.
According to a May press release from the Florida Office of Insurance Regulation (OIR), insurance rate filings for 2024 are experiencing a downward trend for the first in years. OIR attributed the state's insurance market’s stabilization to “historic legislative reforms” of the last several years. Signs of the strengthening market include ten companies filing for zero percent rate increases, another eight companies filing rate decreases to take effect this year, and eight new companies being approved to enter the state’s homeowner’s insurance market.