Rancho Cucamonga, CA (Vocus/PRWEB) January 28, 2011
The most recent Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics (BLS) indicates that the cost of covering a motor vehicle dipped 0.3 percent between November and December. Although that may seem like an insignificant drop, it was the only month-to-month decline in the price of auto insurance documented by the CPI in 2010.
CPI data for last year show that the price of obtaining policy in the United States has risen overall by about 3.7 percent since January 2010.
The largest month-to-month spikes were posted in October and November, which saw increases over the previous month by about 1.1 percent and 0.9 percent, respectively.
According to the National Association of Insurance Commissioners, the national average expenditure on car insurance in 2008 — the latest year for which data is available — was $789. Taking into account subsequent price changes documented in the CPI, the same average policy would cost somewhere around $855 today.
The BLS says that price fluctuations reflected in the CPI should be representative of pricing trends experienced by about 87 percent of the nation’s consumers.
But even though the CPI indicates a gradual increase in costs, it doesn’t necessarily mean that motorists are in fact spending more on coverage today. This fact can be attributed to competition in the market as well as actions that consumers often take in order to keep premiums in check — such as lowering coverage levels, raising deductibles, switching providers or dropping types of insurance that are not required by state law.
When policyholders do this on a large scale, average actual expenditures may in fact decrease even though the price of coverage is on the rise.
To learn more about different coverage types and way of keeping costs in check, readers can go to http://autoinsurance.com/ where visitors will find informative resource pages and a quote-comparison generator that can help shoppers find the best prices on the market.
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