According to the U.S. Bureau of Labor Statistics, prices for motor vehicle insurance were 12.17% higher in 2020 versus 2016 (a $60.83 difference in value).
Between 2016 and 2020: Car insurance experienced an average inflation rate of 2.91% per year. This rate of change indicates significant inflation. In other words, car insurance costing $500 in the year 2016 would cost $560.83 in 2020 for an equivalent purchase. Compared to the overall inflation rate of 1.78% during this same period, inflation for car insurance was higher.
In the year 2016: Pricing changed by 6.20%, which is significantly above the average yearly change for car insurance during the 2016-2020 time period. Compared to inflation for all items in 2016 (1.26%), inflation for car insurance was much higher.
Raw Consumer Price Index data from U.S. Bureau of Labor Statistics for Motor vehicle insurance:
Below are calculations of equivalent buying power for Car insurance, over time, for $500 beginning in 2016. Each of the amounts below is equivalent in terms of what it could buy at the time:
|Year||USD Value||Inflation Rate|