US motor vehicle insurance hits double digit inflation in Sept.
US motor vehicle insurance inflation finally hit a double-digit pace in September after a slow-go first half of the year as the industry chases runaway claims inflation, a monthly inflation report from the US Bureau of Labor Statistics (BLS) indicated.
Seasonally adjusted inflation on motor policies hit 10.3% in September on a 1.6% monthly increase, the fourth consecutive monthly rise in excess of 1%.
The headline annual rate of 10.3% is only the second time this year that policy inflation has beaten out the headline CPI reading, a testament to the game of catch-up being played by the industry.
Policy costs last enjoyed stable growth above economic inflation rates over a period running into early 2019.
Despite renewed gains in 2022, the motor vehicle insurance price index has not regained the trend broken when price growth halted in 2018.
The rise in motor policy inflation comes against the backdrop of 8.2% annual inflation for urban consumers across the nation. That reading was flat from the prior month and below the June 9.0% peak.
The BLS had called out motor vehicle insurance as a leading driver, along with medical care, new vehicles, household furnishings and education.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
