The latest report from the U.S. Bureau of Labor Statistics (BLS) reveals that auto insurance costs have surged by 20.6% over the past year, significantly outpacing the overall inflation rate of 3.1% during the same period. Studies indicate that in California, low-income and nonwhite households are disproportionately affected by inflation.

According to the Consumer Price Index (CPI) summary released on February 13, costs escalated in several categories over the 12-month period ending in January. These include food (+2.6%), electricity (+3.8%), shelter (+6%), and transportation services (+9.5%). Car insurance was highlighted among indexes with "notable increases" in the last year, alongside recreation (+2.8%), personal care (+5.3%), and medical care (+1.1%).

A report from the California Budget and Policy Center has found that in California, inflation and high cost of living impact low-income and nonwhite households most severely. The report cited a survey revealing that three out of five households in the state with incomes less than $50,000 reported struggling to afford basic expenses. About half of nonwhite California households stated they were grappling with the cost of basic expenses, compared to approximately 30% of white households in the state.

The Los Angeles Times reported in December that besides facing escalating car insurance costs, some Californians are finding it difficult to secure auto insurance coverage at all due to frustration over state regulations causing some insurance providers to limit their business operations within California. Laine Caspi, an agent for Paratus Insurance Services, said some customers have terminated their insurance coverage entirely as they can't afford the increased premiums.

The BLS is a division of the Department of Labor, as per its website information. The BLS provides data related to labor economics and is responsible for analyzing and publishing this data for use by government agencies, employers, and the general public.