Price Increase Alert! 
I’ve been a loyal State Farm customer for my vehicles for the past 25 years, and I get that rates have been rising like everything else these days.
About a year ago, I bought a 2017 Kia Rio, which had only 64,000 miles on it. Just a side note—I paid cash for the car, and while my credit isn’t great due to issues from seven or more years ago, I thought having no debt and no credit cards would work in my favor.
Initially, my full coverage premium was quite shocking at $180 a month, knowing that Kia’s are generally more expensive to insure because of theft rates, even though I live in a rural area. After six months, I expected my rate to drop, especially since I always use the State Farm Safe Driving Beacon. To my surprise, it went down to $140—wonderful!
I drive safely and only hit the road twice a week, racking up excellent scores on my beacon. Sure, I might lose a point or two for occasional hard braking or acceleration due to unexpected situations, but overall, my driving record is solid. I haven’t had a claim in over seven years and have addressed all the recalls related to Kia’s theft issue. Plus, I haven’t received a ticket in over a decade!
So, imagine my shock when I opened my latest renewal notice to find my premium had jumped to $205 a month! What in the world is happening? The only explanation I can think of is that I live near the coast, and while we faced a hurricane this year, my car was untouched and I didn’t file any claims. It makes me understand why so many people in Houston choose to go uninsured.
I’m sure insurance companies are feeling the pinch from all the payouts due to recent hurricanes and floods, which can’t help but impact premiums nationwide.
Honestly, I refuse to pay $205 a month for insurance on an eight-year-old car. My previous vehicle, a 2012 Kia Rio, only cost me $80 a month for the same coverage and came with all the extras—automatic locks, windows, and a rearview camera. The 2017 model I have now is stripped down without those features.
Now I’m faced with the choice of dropping to liability coverage. What if someone hits me without insurance? In my area, a car is essential—my nearest store is 30 minutes away by car. Thankfully, I did get an electric bike a couple of months ago as a backup since there’s zero public transport here.
I need to figure out how to lower my current premium. I thought $180 was steep, then $140 seemed like a bargain, only to see it skyrocket to $205. Absolutely not!
At this point, I’m shopping around for better rates. I’m on a fixed income from Social Security, just getting by on $795 a month, and this unexpected $65 increase makes budgeting even tighter. It’s beyond me how anyone manages to pay rent, car notes, full coverage insurance, and home insurance, especially in areas prone to natural disasters. Is there even a safe place to live without natural disaster risk?
On another note, I’m planning to switch from Verizon to Mint Mobile since my iPhone 13 Pro Max will be paid off this month. They offer plans for under $300 a year, which is a huge saving compared to the $71 a month I’m currently paying for just one line, especially since I mostly use Wi-Fi at home.
Time to make some changes!
I completely understand your frustration with the rising insurance rates—it’s a situation many of us find ourselves in these days, especially after being loyal customers for so long. It’s discouraging when you do everything right, like driving safely and maintaining a good track record, yet your premium still increases.
It sounds like you’ve done a great job keeping your driving history clean and managing your expenses, and it’s rough to see costs go up, especially when you’re on a fixed income. The insurance industry’s decisions often feel disconnected from our individual situations, and the impact of natural disasters can ripple out in ways that make it hard for people like us to manage our finances effectively.
I think shopping around for different insurance options is a wise move, especially since you feel so strongly about not wanting to pay that increased premium. There might be other companies out there that can offer you a better deal, especially considering your driving record and the fact that you’ve had no claims.
It’s also smart to reevaluate your policy to see if there are any coverage options you could adjust to bring the cost down. Perhaps looking into just liability for now, given the car’s age, could help ease the burden.
Your electric bike sounds like a great backup option too; it’s always good to have alternatives. You’re certainly not alone in feeling pressed by rising costs and the need to make smarter choices. I hope you find a solution that works for you, whether it’s a better insurance rate or a healthier phone plan. Hang in there!