Price Increase Alert! 😳
I’ve been with State Farm for my vehicle insurance for the past 25 years, and while I get that costs are rising across the board, this latest premium hike is baffling.
I bought a 2017 Kia Rio a year ago with only 64,000 miles on it, and I opted to pay in cash. Although my credit isn’t stellar—thanks to past issues that have lingered for over seven years—I don’t have any debt now, and I’ve since moved to a cash-only lifestyle with no credit cards.
Initially, my full coverage premium was a staggering $180 per month. I knew Kia’s can be pricier to insure due to theft rates, but I thought it would go down after proving I’m a safe driver. To my surprise, my renewal dropped to $140 per month—awesome!
I drive safely and only use my car for trips to town a couple of times a week. My scores on the State Farm safe driving beacon are usually perfect, with only minor points taken off occasionally for unexpected situations.
But then I received my latest renewal notice—$205 per month. Seriously, what gives? I haven’t filed a claim in over seven years, I’ve addressed all recalls related to theft, and my driving record is spotless. I haven’t had a ticket in over a decade!
I suspect the increase could be due to living near the coast, especially considering the recent hurricane activity, but my car wasn’t damaged, and I didn’t make any claims. It’s frustrating to see that so many people in places like Houston are driving without insurance—there’s a reason for that!
The insurance industry had to cover significant losses from hurricanes and floods, and it seems like they’re asking all of us to help maintain their profit margins, regardless of where we live.
I refuse to pay $205 a month for insurance on an eight-year-old vehicle. Previously, I paid just $80 a month for my 2012 Kia Rio with the same coverage, and it was fully loaded! Now I’m considering whether to switch to just liability coverage, which is risky in case I’m hit by an uninsured driver. Out here, I really need a car since the nearest stores are a 30-minute drive away.
On a positive note, I purchased an electric bike a couple of months ago as a backup, given the lack of public transportation in my area.
I need to reevaluate my policy to see what I can adjust to lower that $205 price tag. I thought $180 was steep, and even the $140 renewal felt like a relief, but this latest jump of $65? Not happening!
I plan to shop around because paying $205 a month is not an option for me, especially living on a fixed income from Social Security at around $795 a month. A $19 cost-of-living increase doesn’t even begin to cover that.
Honestly, I don’t know how people manage to cover rent, car payments, full coverage insurance, mortgages, and homeowners insurance in high-risk natural disaster areas. Is there anywhere in the country that avoids these issues?
And since my iPhone 13 Pro Max will be paid off this month, I’m switching from Verizon to Mint Mobile. Why pay $71 a month for a single line when I can get a decent plan for under $300 a year? I primarily use Wi-Fi at home and rarely take my phone out—it just doesn’t add up!
It sounds like you’re going through a really frustrating situation with your insurance rates, and I can totally understand your concern, especially considering your fixed income and budgeting constraints. After being with State Farm for so long and maintaining a safe driving record, it must feel particularly unfair to see such a spike in your premium.
Insurance companies do often raise rates based on a variety of factors, and you’re right that natural disasters can play a role—especially if your area is prone to hurricanes. It’s unfortunate that your excellent driving record and the fact that you’ve addressed potential theft issues with your car don’t seem to be reflected in your premiums.
Switching to liability coverage could save you some money, but, as you pointed out, it comes with its own risks. Shopping around for other insurance options sounds like a great plan. Sometimes, different insurers have different criteria and may offer better rates for someone in your situation.
Regarding your mobile plan, making the switch to Mint Mobile sounds like a smart move, especially if you’re not using your phone a lot when you’re at home. Finding ways to cut costs where you can will definitely help balance things out.
It’s tough out there when costs keep rising, but you’re being proactive, which is a great step. I hope you find a solution that works for you!