price increase $$ – geez

Price Increase Woes 😞

I’ve been with State Farm for my vehicle insurance for 25 years now, and while I get that rates are rising just like everything else in this country, I’m feeling quite frustrated.

A year ago, I bought a 2017 Kia Rio with only 64,000 miles on it. I paid cash for the car, which is important to mention because my credit isn’t great due to some issues from over seven years ago. These past credit problems seem to affect my rates, although I now have no debts and no credit cards.

In the first six months, I was surprised by how high my full coverage premium was—$180 a month! I realize that Kia vehicles can be a bit more expensive to insure due to theft rates, even though I live in a rural area, far from city life. Then, when I renewed, I received a welcome drop to $140 a month, which I thought was hopeful.

I drive safely, using the car only a couple of times a week, and my driving scores on the State Farm safe driving beacon are usually perfect. I haven’t had a claim in over seven years and have addressed all recalls to prevent theft. Plus, I haven’t received a ticket in over ten years.

So, you can imagine my shock when I just got my renewal for the next six months and the premium jumped to $205 a month! What’s going on? The only thing I can think of is that my area is close to the coast and had a recent hurricane, though my car wasn’t damaged and I’ve made no claims.

I can see why many people in Houston and beyond opt not to carry car insurance. With insurance companies likely paying out for various hurricanes and floods, it seems they are looking to maintain their profit margins by increasing premiums across the board.

I really don’t want to pay $205 a month for insurance on my eight-year-old car. My previous car, a 2012 Kia Rio, had the same coverage and cost only $80 a month, despite being fully loaded. The 2017 model is basic—standard transmission, no automatic locks, no power windows, and no rearview camera.

Now, I’m faced with the dilemma of switching to liability coverage. If I’m hit by someone without insurance, I could lose my only means of transportation, and out here, the nearest stores are a half-hour away. Thankfully, I bought an electric bike a couple of months ago as a backup since there’s no public transport in my area.

I absolutely refuse to pay $205 a month, so I’m going to review my policy to see what changes I can make to bring that cost down. I thought $180 was bad, and when it dropped to $140, I had hopes it might go lower in the next renewal. Now, to see a jump of $65 instead—no thanks!

At this point, I’ll have to shop around. I’m on a fixed income from retirement and Social Security, and the extra $65 a month from my $795 income isn’t feasible, especially when I just received a $19 cost-of-living increase from the government.

I don’t understand how people manage to pay for rent, car payments, full coverage insurance (especially on financed vehicles), mortgages, and homeowner’s insurance—especially in areas labeled as disaster-prone. Is there anywhere left in the country free from natural disasters?

On another note, I’ll be paying off my iPhone 13 Pro Max this month and switching from Verizon. I’ve looked into Mint Mobile, and they offer a plan with several gigs a month for under $300 a year. Paying $71 a month for one phone line seems excessive, especially when I have Wi-Fi at home and only use my phone occasionally.

It’s getting tough out here!