The cost of motor vehicle insurance rose 22.6% over the last year, according to the latest Consumer Price Index summary from the U.S. Bureau of Labor Statistics. In comparison, the overall rate of inflation for the last year was 3.4%.
The index for shelter costs, comparatively, rose 5.5% in the last year, while the index for used cars and trucks decreased by 6.9% in the same time period.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in April, after rising by 0.4% in March, and among the categories that contributed to the increase was motor vehicle insurance, which rose by 1.8% over the month. During March, motor vehicle insurance rose 2.6%.
Nevada drivers are paying an average of $2,779 annually for full coverage car insurance, according to Bankrate. The national average cost of full coverage auto insurance is $2,014.
According to a report by the National Association of Mutual Insurance Companies (NAMIC), abuse of the legal system, including practices like third-party litigation funding, is driving up insurance costs for all policyholders by increasing the number of lawsuits. This rise in litigation forces businesses to hike their prices, subsequently passing these costs onto consumers.