The cost of car insurance has risen dramatically every month this year – Mish Talk

CPI data from BLS, calculation and chart by Mish

Percent increases 2022

  • January: 1.09%
  • February: 1.79%
  • March: 0.83%
  • Apr: 0.54%
  • May: 0.36%
  • June: 1.60%
  • July: 0.94%
  • August: 0.98%

CPI auto insurance percentage change from previous year

CPI motor insurance percentage change from previous year 2022-08

Over the past year, the cost of auto insurance has increased by 8.72% and is rising rapidly.

Detail of the CPI Motor Insurance Index

Detail of the CPI motor insurance index 2022-08

Motor insurance CPI index since 2012

Motor Insurance CPI Index 2022-08

Between 2018 and 2020, the growth of car insurance rates stabilized. Since the end of the pandemic, and especially from 2022 (main chart), the cost of insurance has been in tears with no end in sight.

What’s going on?

Crime comes to mind.

The New York Times reports ‘I Honestly Believe It’s a Game’: Why carjacking is on the rise among teens

“I sincerely believe it’s a game,” Mr Majeed said. Stolen cars were once dismantled and the parts sold for cash, he said. Today, people are victims of carjackings and cars are often later found, wrecked or simply left on the street. “It’s a game.”

In the odd calculations of the last two pandemic years, as different types of crime have risen and fallen, carjacking has made an alarming resurgence. The number of reported incidents nearly quadrupled in Philadelphia from 2019 to 2021 and is on track to double this year; Chicago recorded more than 1,900 carjackings last year, the highest number in decades. Two months into 2022, the number of armed carjackings in New Orleans was already two-thirds of the full year tally in 2019. Washington, D.C., where 426 carjackings were reported the year last, is no exception.

But none of this fully explains what officials say is the most troubling part of the trend: the age of so many of those arrested. Youths as young as 14, 12 and even 11 years old have been charged with armed hijackings or, in some cases, murder.

“It’s been interesting over my career to see the crime mix change with no apparent explanation,” Prof Ferrer said. “A number of them are crimes of opportunity, people looking for that kind of handy fruit.”

What is clear, he said, is that the long-term impact of the lonely and traumatic years of the pandemic on adolescent development cannot be overstated. Although schools are back to in-person learning and recreation centers are reopening, that impact – and the rise in carjackings – hasn’t just gone away.

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An end in sight?

Not that I can see.

Car insurance is a similar rent. It mostly increases once a year or possibly every six months. Then he jumps into a single big fit that the BLS slices and chops into 12 buckets.

For the month of August, the BLS indicates that auto insurance represents 2.4% of the CPI. At the rate it is growing, it adds a tiny bit to the overall index each month.

Insurance of an inelastic article. Unless you’re willing to give up your car, there’s nothing you (or the Fed) can do to influence that cost.

Stocks hammered as CPI rises just 0.1% higher than expected

On September 13, I noticed stocks hammering as CPI rose just 0.1% more than expected

The CPI rose 0.1% in August, 0.1% more than economists expected.

See the link above for more details.

This post is from MishTalk.Com

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