Car insurance rates are up almost 21 percent for the 12 months ending in February, according to new Consumer Price Index data released Tuesday. The last time car insurance rates rose that much on an annual basis was 1976.
The rise in car insurance rates alone contributed half a percentage point to the overall 3.2 percent inflation rate last month from a year earlier. It represents one of many obstacles standing in the way of the Federal Reserve’s 2 percent inflation goal, and continues to be a focal point for Americans already struggling with some of the highest consumer prices in decades.
