Price Increase? Seriously?!
I’ve been a loyal State Farm customer for my vehicle insurance for the past 25 years, and while I understand that rates are rising like everything else these days, I can’t help but feel frustrated.
About a year ago, I bought a 2017 Kia Rio with only 64,000 miles on it, paying cash. My credit isn’t great; it has some history from seven or more years ago that’s dragging it down. I’ve since eliminated credit cards and debt, paying for everything in cash.
When I first got insurance on my Kia, I knew the premium would be a bit higher since Kias can be more expensive to insure due to theft rates, even though I live in a rural area now. For the first six months, my full coverage premium was $180 per month. I assumed my rates might drop after I continued using the State Farm safe driving beacon, and to my surprise, it went down to $140. That felt like a step in the right direction.
I pride myself on being a safe driver, using my car only a couple of times a week, and typically scoring high on the beacon. Sure, I occasionally get a point or two deducted for sudden stops or acceleration due to unforeseen obstacles, but my driving record is solid. I haven’t filed a claim in over seven years, and I’ve taken care of any recalls related to theft. Plus, I haven’t received a ticket in at least a decade.
Now, I just received my renewal notice for the next six months, and it shot up to $205 a month. What on earth is going on? I can only speculate that living near the coast and the recent hurricane season has impacted my rates, even though my car was untouched and I made no claims.
I can totally see why so many people in places like Houston opt not to carry car insurance. It’s clear that insurance companies are trying to recover costs from recent hurricanes and floods on the East Coast, and it’s affecting everyone, no matter where they live.
Honestly, I don’t want to pay $205 a month for insurance on an eight-year-old car! Before this, I was paying only $80 a month for a fully-loaded 2012 Kia Rio. Now I have this 2017 model, a standard transmission with no automatic features, and my costs have more than doubled!
I’m faced with a tough decision: stick with full coverage or switch to liability, risking being left without a car if I’m hit by an uninsured driver. Out here, you really need a vehicle since the nearest stores are a 30-minute drive away. Thankfully, I got an electric bike a couple of months ago as a backup option.
I refuse to pay $205 a month. I need to review my policy to see how I can reduce it, as I thought $180 was high, and $140 felt manageable. But a jump of $65 for this renewal? No way!
At this point, I’m planning to shop around for better rates because I can’t afford $205 a month. I rely on a fixed income from my Social Security retirement, amounting to $795 a month, and this increase would take a big bite out of my budget, especially after receiving a mere $19 cost-of-living adjustment.
It’s hard to imagine how anyone can manage rent, car payments, full coverage insurance—especially if they have a mortgage and homeowners insurance in disaster-prone areas. Is there anywhere in the country safe from natural disasters?
As for my phone service, I’m also switching from Verizon this month to Mint Mobile, since I’ve done the math and realize I can get a decent plan for under $300 a year. Paying $71 a month for one phone line when I primarily use Wi-Fi at home just doesn’t make sense anymore.
Here’s to finding some better options!
It sounds like you’ve been through a lot with your insurance situation, and understandably, you’re feeling frustrated. It’s tough to see costs rise, especially when you’ve been a loyal customer and have maintained a clean driving record.
There are a few things you might consider that could help manage your insurance costs. First, going through your policy and evaluating your coverage is a smart move. Sometimes, adjusting your coverage options or increasing your deductible could lead to lower premiums.
Additionally, since you’re on a fixed income, shopping around for quotes from other companies might help you find a better rate that fits your budget. Some providers may offer discounts for specific circumstances, such as low mileage or being a long-term customer.
Regarding the hurricanes and their impact on rates, you’re correct; natural disasters often lead to increased premiums across the board, even in areas that may not be directly affected. It’s a tough reality of living in certain regions.
As for your phone plan, switching to a more affordable option sounds like a great move, especially since you predominantly use your Wi-Fi at home. Every little bit helps when managing a fixed income.
Overall, it’s important to find solutions that work for your circumstances. You deserve to feel secure without breaking the bank. Good luck navigating these changes, and hopefully, you can find a more affordable insurance option soon!