Price Increase Alert 😩
I’ve been with State Farm for my vehicle insurance for the past 25 years, and while I understand that rates have been rising just like everything else in our economy, this latest price hike has me baffled.
Last year, I bought a 2017 Kia Rio with only 64,000 miles on it. I paid cash for the car, but I want to mention my credit isn’t great due to some issues from over seven years ago. Since then, I’ve been living debt-free, have no credit cards, and have been paying for everything in cash.
During my first six months with full coverage—everything included, even uninsured motorist protection—I was shocked to see my premium at $180 a month. Knowing Kia vehicles tend to be slightly more expensive to insure because of theft rates, I rolled with it, realizing I now live in a rural area and not a major city.
When I received my renewal notice, I was relieved to see my premium drop to $140 a month, thanks to the State Farm Safe Driving Beacon, which tracks my driving. I typically drive safely, using my car only a couple of times a week, and I’ve maintained high scores on the beacon with very few deductions for minor infractions.
Now, I just received my latest renewal statement, and my premium jumped to $205 a month! What the heck is going on? I haven’t had a claim in over seven years, and I’ve even addressed all recalls related to my Kia’s theft issues. Plus, I haven’t received a ticket in over a decade.
The only explanation I can find is that I live near the coast, which was affected by hurricanes, but my car remained safe and undamaged. I completely understand now why so many people in areas like Houston forgo car insurance. The rise in claims from catastrophic weather seems to be driving up rates across the board, impacting drivers regardless of their individual records.
I refuse to pay $205 a month for insurance on an eight-year-old car. Before this, I had a 2012 Kia Rio that cost me only $80 a month for the same coverage—fully loaded, of course!
Now I’m left weighing my options: do I switch to liability coverage, potentially leaving myself without a car if I’m hit by an uninsured driver? Living in a rural area means a car is essential, as the nearest stores are a 30-minute drive away. Thankfully, I did invest in an electric bike a couple of months ago as a backup, since there’s no public transport here.
This increase is simply unacceptable. I had hoped to find ways to adjust my policy, but to see an increase of $65 a month—after already managing to cope with a $180 premium—just isn’t feasible for me. On a fixed income of $795 a month from Social Security, this latest hike threatens my budget, especially after a meager $19 cost-of-living increase.
Honestly, I can’t fathom how anyone can afford rent, car payments, full coverage insurance—especially for financed vehicles—along with homeowners insurance in areas prone to natural disasters. Is there even any place in the country safe from such events?
On a related note, I’ll be paying off my iPhone 13 Pro Max this month, and I’m seriously considering switching from Verizon to Mint Mobile. They offer plans for under $300 a year with ample data, which is a far better deal than the $71 I’ve been paying for one line.
It’s time for a reassessment of all my expenses!
It sounds like you’re going through a really challenging time, and I can totally understand your frustration with the sudden increase in your insurance premium. It seems especially unfair given your safe driving record and the fact you haven’t had any claims in years. Insurance companies can often adjust rates based on broader trends and regional risks, including natural disasters, which can make it even more frustrating for those who are careful drivers and have taken steps to secure their vehicles.
It might be a good idea to shop around for quotes from other insurance providers, as you mentioned. Sometimes you can find a much better rate, especially if you’re willing to adjust your coverage a bit. Looking into increasing your deductible or switching to liability-only coverage could help lower your premium, though it’s a tough decision knowing the risks involved.
As for your living situation and fixed income, it’s a tough balance to maintain. Have you looked into any local programs or discounts for seniors on insurance? Sometimes companies offer reduced rates for retirees or low-income households. It’s great to hear you’ve got an electric bike as an alternative for getting around, that could definitely help reduce the stress of relying solely on your car.
Lastly, your move to a more affordable phone plan sounds like a smart decision! Every little bit helps when trying to make ends meet. Take a deep breath and know that you’re not alone in dealing with these rising costs; many people are feeling the same pinch. Wishing you the best of luck in finding a solution that works for you!