BIRMINGHAM, Ala. ( WIAT ) – Auto insurance rates are expected to continue increasing this year, with Alabama projected to rise by 18%.
According to AAA, these hikes are nothing new as car insurance rates have been increasing annually for the last several 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 said. “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.”
AAA recommends “shopping” for insurance rates every two to three years because each company uses a different formula to figure out coverage. What works best for one person may not be the best option for everyone.
“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 said. “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.”