The cost of motor vehicle insurance has gone up in the last year, and the emergence of new technology, including advanced driver assistance systems, could be playing a role in these increases.
An Insurance Information Institute (III) analysis of the Consumer Price Index for January 2017 shows that consumer prices for car insurance rose 7.5 percent since January 2016. The institute’s research reveals that the jump is partly attributable to one-month price increases of 0.8 percent or more in four of the last ten months.
The study finds that while current prices for motor vehicle parts and equipment are about the same as they were in April 2011, many other factors could be driving increases in insurance prices. These include an ongoing drop in insurers’ investment income, rising costs for medical care and an increase in the collision rate as more people are working, which boosts rush-hour traffic. The cost of repairing the growing number of advanced electronic systems in newer vehicles could play a role as well, the institute says.
The national average cost for car insurance in the U.S. was $814.63 in 2012, according to a January 2016 report from the National Association of Insurance Commissioners. In 2013 (the latest year for which data are available), New Jersey had the highest cost at $1,254.10), followed by the District of Columbia ($1,187.49) and New York ($1,181.86).