NU Online News Service, April 15, 3:15 p.m. EDT
The Consumer Price Index for auto insurance continued to climb along with costs for vehicle bodywork, according to the latest U.S. Department of Labor figures released today.
According to the numbers reported by Insurance Information Institute, as of March the cost of motor vehicle insurance was up 4.4 percent compared with a year ago and collision repairs rose by the same amount.
In the comparison of March numbers to last year, medical care was up 2.8 percent, physicians' services 3.4 percent, hospital services 6.5 percent and legal services 3.3 percent.
Bodywork costs went up even as vehicle costs showed declines. New vehicle costs overall were down 0.8 percent, with the biggest drop for used cars and trucks at -11.8 percent. New car costs were up 0.2 percent.
Renters and tenants insurance showed a gain of 2.6 percent, with repair of household items up 4.9 percent.
After release of February CPI figures last month Steven Weisbart, I.I.I. senior vice president and chief economist, noted that some components having particular application to claims were up significantly.
Mr. Weisbart cited the fact hospital services rose 6.2 percent over the 12-month period ending in February and motor vehicle bodywork was up 4 percent for the period.
He mentioned that home insurers and commercial property insurers might be affected by material increases with the price of wafer board and oriented strand board rising 23.9 percent from February 2008. The increase in building material is recent since the item rose only 5.3 percent for the 2008 calendar year.
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