Rising lawsuits and large jury verdicts are driving up liability insurance costs across Alabama, according to a new Alabama Department of Insurance report that found claim severity has surged far faster than inflation over the past four years. The Alabama Liability Insurance Coverage Data Call analyzed multiple insurance lines — including private and commercial auto, general liability, professional liability and umbrella coverage — to better understand what is driving rising insurance costs in the state. From 2020 to 2024, the average cost of a liability claim increased 59%, far outpacing general inflation, which rose 23% during the same period. Less than 10% of Alabama liability claims involve legal action, but those cases account for more than one-third of all dollars paid. About 26% of legal claims remain open for more than two years, compared to 8% of non-legal claims, and defense costs for legal claims increased 32%, compared to 16% for non-legal claims.