Hi everyone,
I recently bought a new Toyota RAV4 Hybrid XLE and signed up for car insurance with State Farm. However, the monthly payment seems high, and I’m wondering if this is the standard rate or if there are ways to lower my premium. Any advice would be appreciated.
If you’re in a no-fault state, insurance costs are usually high no matter what. Michigan maybe? Those rates look familiar. State Farm tends to be one of the more expensive options. Try getting quotes from different companies.
One way to lower your cost is by increasing your deductible to $1,000 for comprehensive and collision. Just make sure you have that amount saved in case you need it.
You might also lower your bodily injury limits to 100/200 or whatever you’re comfortable with.
And seriously, take a defensive driving course. It can save you money, and it shows the insurance company you’re a low-risk driver.
If they’re quoting you over $415 a month, that’s crazy unless you’re a teenager or have a bad driving record. They don’t really want your business, they just throw out a high number hoping you’ll take it. If you do, they win. If you don’t, they didn’t want you anyway.
Do not lower your coverage just to get a cheaper price. Being underinsured can cost you way more in the long run. Your best bet is to shop around with other companies. I had a similar experience—one company wanted almost $350 a month, another gave me the same coverage for $85.
Edit: Someone messaged me about my switch—I left Farmers and went to State Farm for lower rates. I expect I’ll have to switch again in a couple of years when the rates go up. It’s just how it works now.
Your rate depends on a lot—age, location, driving history, the car you drive, and more. Without knowing those details, it’s hard to compare rates online. Your best move is to check with different insurance companies and see who gives you the best price. From my experience, State Farm is usually on the expensive side.
Some things might help lower your cost—bundling policies, taking a defensive driving course, or allowing them to track your driving. I’m in New York, and my insurance is high, but that collision coverage price you have is extreme. State Farm is a solid company, but they tend to be pricey.
Did you check rates with other companies? Your deductibles for comprehensive and collision seem low, and that might be pushing your premium up.
I maxed out my coverage with the lowest deductible using Geico, and I pay $295 a month. I live in Colorado, where rates are high because of snow and hail.
I use NJM and pay $85 a month for a 12-month policy on a 2020 XLE Hybrid. I maxed out my coverage with a $500 collision deductible and $50 other than collision. Every year, I ask State Farm for a quote, and they’re always way higher. State Farm has to cover disasters in other states and pay commissions, so they probably won’t be your cheapest option.
I pay about $650 a year, but I’m middle-aged with a clean record and multiple policies with the same company. If Erie Insurance is available where you live, check them out.
Try finding an insurance broker. They can usually get you lower rates. I pay around $880 for six months with Allstate for full coverage.
Jori said:
Try finding an insurance broker. They can usually get you lower rates. I pay around $880 for six months with Allstate for full coverage.
I saw an offer from Allstate. Is it a good company?
@Pip
It’s decent. I mostly went with what my broker suggested. Allstate offers higher medical payment coverage than some other companies.
If you’re in the U.S. and want, message me. I can give you my broker’s info, and he can get you quotes within a few hours.
You might want to update your post with your location. I’m in New Zealand, and I’m wondering if your prices are in NZ dollars or another currency.
Your rate is a little higher than mine, but I have a 12-month policy.
Shopping around makes a big difference. I use Erie Insurance and get a 10% discount for paying annually. Next year, I’ll probably get another discount for no claims.
First thing—raise your deductibles to the highest amount you can afford to pay out of pocket.
Thanks for all the advice. I checked around and found a good offer from Allstate, but I’m not sure if it’s a good choice.
Check if Toyota Insurance is available in your state. They might offer something more competitive.
Message me. I just got a 2024 RAV4 XLE for my family, and they’re paying about $125 a month in California for 100/300/100 coverage.
