This year, auto insurance prices are predicted to grow further, with Alabama seeing an increase of 18%. These increases are nothing new, according to AAA, as rates for auto insurance have been rising yearly for the past few years.
“Typically, the reason that we see that happen is because of an increase in the cost of repairing a vehicle,” AAA spokesman Clay Ingram stated. “That’s a big factor in determining what your rates are and then it just seems like our crash rates aren’t getting much better from one year to the next either and that’s certainly part of that same equation.”
Every two to three years, AAA advises “shopping” around for insurance rates because different insurance providers use different formulas to determine coverage. Not everyone will benefit from the same solution that works well for one individual.
“Sometimes you have to grit your teeth when you write that check out and it’s not fun but the more money that we spend on things like that, the less money we have to spend on some of the fun things in our life,” Ingram stated. “It makes it hard for a lot of people, especially with the minimum wage being where it is right now and all these other day-to-day expenses being higher.”
The rising cost of living is already forcing many people to make financial sacrifices, and rising auto insurance premiums only make matters worse. Many drivers complain that they are becoming tired of paying more for insurance but that there is little they can do about it.
A few drivers claim that because insurance prices are going up, they have already changed insurance providers.
“I really like my insurance company but they just couldn’t really do anything about the rates going up so it’s kind of out of their control from what I was told. So I just had to switch to make ends meet,” Birmingham resident Rebekah Odle stated. “No hard feelings against anybody that works in those insurance companies, I just had to do what was best for me.”
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Since they must be paid for in order to be able to legally drive, some drivers find the rising rates to be annoying. As of now, according to AAA, there are no plans to raise auto insurance costs.
