Charlie Bilello, Chief Market Strategist at Creative Planning, said in a social media post that over the past decade, U.S. auto insurance premiums have increased by 94%, more than double the 35% rise observed in the overall U.S. consumer price index (CPI).
"US Auto Insurance rates have increased by 94% over the last decade, far above the 35% increase in overall consumer prices," said Bilello.
According to Bilello, a graph he presented shows a significant divergence between U.S. auto insurance rates and the overall CPI over a ten-year period from 2015 to 2025. The data reveals that while auto insurance rates initially rose gradually, they dipped slightly during the 2020 pandemic and then sharply increased starting in 2021, reaching a peak of 94.17% by mid-2025. In contrast, the overall CPI followed a steadier path, ending at 35.06%. This suggests that auto insurance costs have escalated disproportionately compared to broader inflation.
The U.S. Bureau of Labor Statistics (BLS) reported that motor vehicle insurance costs rose by 20.6% year-over-year as of June 2024, marking one of the highest annual increases in this category over the past decade. This surge is attributed to rising vehicle repair costs, increased claim frequency, and elevated replacement part prices. The BLS also noted that overall consumer prices rose by just 3.1% during the same period, highlighting how auto insurance prices are outpacing general inflation.
Industry analysts point out that auto insurers are facing higher claim severities due to more expensive vehicle technologies, increased labor costs, and heightened accident repair complexity. A report from the Insurance Information Institute in 2024 indicates that collision coverage costs jumped nearly 25% from 2022 to 2024, while bodily injury liability costs increased by 15% in the same timeframe. These trends are prompting insurers to request rate hikes across most states to maintain profitability.
Bilello is affiliated with Creative Planning, a wealth management firm managing over $300 billion in assets under management. Prior to his current role, he founded Compound Capital Advisors and held senior research positions in investment strategy.