Car insurance price inflation, 2023→1997

Car Insurance Inflation Calculator

Prices for Car Insurance, 2023-1997 ($500)

According to the U.S. Bureau of Labor Statistics, prices for motor vehicle insurance were 64.86% lower in 1997 versus 2023 (a $324.30 difference in value).

Between 2023 and 1997: Car insurance experienced an average inflation rate of -3.94% per year. This rate of change indicates significant deflation. In other words, car insurance costing $500 in the year 2023 would cost $175.70 in 1997 for an equivalent purchase. Compared to the overall inflation rate of -2.44% during this same period, inflation for car insurance was lower.

In the year 2023: Pricing changed by 17.41%, which is significantly above the average yearly change for car insurance during the 2023-1997 time period. Compared to inflation for all items in 2023 (4.12%), inflation for car insurance was much higher.

Price Inflation for Motor vehicle insurance since 1935

Consumer Price Index, U.S. Bureau of Labor Statistics

Years with the largest changes in pricing: 1976 (28.83%), 1948 (20.68%), and 1952 (19.56%).

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Buying power of $500.00 since 2023

Below are calculations of equivalent buying power for Car insurance, over time, for $500 beginning in 2023. Each of the amounts below is equivalent in terms of what it could buy at the time:

Year	USD Value	Inflation Rate
2023	$500.00	17.41%
2024	$570.44	14.09%*

* Not final. See inflation summary for latest details.
** Extended periods of 0% inflation usually indicate incomplete underlying data. This can manifest as a sharp increase in inflation later on.

Raw Consumer Price Index data from U.S. Bureau of Labor Statistics for Motor vehicle insurance:

Year	1935	1936	1937	1938	1939	1940	1941	1942	1943	1944	1945	1946	1947	1948	1949	1950	1951	1952	1953	1954	1955	1956	1957	1958	1959	1960	1961	1962	1963	1964	1965	1966	1967	1968	1969	1970	1971	1972	1973	1974	1975	1976	1977	1978	1979	1980	1981	1982	1983	1984	1985	1986	1987	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
CPI	8.900	8.900	8.900	8.900	8.900	8.800	9.000	9.900	9.000	8.700	8.700	10.400	11.733	14.160	15.740	14.620	15.340	18.340	20.540	20.340	19.440	19.000	20.780	23.700	25.160	25.740	25.940	25.700	26.220	27.667	30.400	32.360	33.220	34.000	36.946	42.015	46.777	46.592	45.777	45.800	48.369	62.315	69.808	71.846	75.815	82.023	85.908	91.431	100.362	108.192	119.208	135.038	146.231	156.592	166.554	177.869	191.515	205.477	216.685	224.808	234.292	243.854	251.600	254.285	253.831	256.723	268.138	291.585	314.438	323.192	329.854	331.777	333.143	341.519	356.997	375.180	388.655	402.476	419.400	437.219	460.611	489.149	526.911	565.957	571.032	544.633	565.313	609.840	716.004	816.879

Adjust car insurance prices for inflation

Start with the inflation rate formula:

CPI in 1997 / CPI in 2023 * 2023 USD value = 1997 USD value

Then plug in historical CPI values from above. The CPI for Motor vehicle insurance was 716.004 in the year 2023 and 251.600 in 1997:

251.600 / 716.004 * $500 = $175.70

Therefore, according to U.S. Bureau of Labor Statistics, $500 in 2023 has the same "purchasing power" as $175.70 in 1997 (in the CPI category of Motor vehicle insurance).

Source: U.S. Bureau of Labor Statistics began tracking the Consumer Price Index for Motor vehicle insurance in 1935. In addition to car insurance, the index produces monthly data on changes in prices paid by urban consumers for a variety of goods and services.