Purchasing Auto Insurance in South Carolina: Tips and Overview

South Carolina operates on a tort system when it comes to automobile accidents. This means that the driver determined to be at-fault would be the one to pay for the injuries and damages caused to other drivers and passengers. The state has imposed minimum limits for coverage required in auto insurance policies. These include $25,000 liability coverage for bodily injuries per person, $50,000 coverage for total injuries per accident, and $25,000 for property damages. In addition, the state also requires uninsured motorist coverage in order for vehicle owners to legally operate within the road and highways of South Carolina.

One unique aspect of the state’s automobile insurance system is the permission of those who did not purchase auto insurance to pay $550 to the South Carolina Department of Public Safety in order to be able to operate a vehicle legally. The downside of this system is when the driver is found to be at fault, he or she has to pay for the injuries and damages personally and may lead to personal bankruptcy if the costs are astronomical. Typically, an auto insurance policy contains more than just the required coverage. This is because most policyholders opt to include coverage for personal injury, collision, and comprehensive coverage for theft, vandalism, and other damages caused by other events except collision. However, those who purchased their automobile through loan might find themselves being required to carry collision coverage during the entire term of the loan. Should the policyholder have an accident before the loan was paid off and the car is declared a total loss, he or she is still obligated to pay the lender the remaining amount of the loan.

There are several things to remember before purchasing an auto insurance policy. One is to select a financially stable insurance company which is capable of paying any claims you might want to make in the future. You can do this by checking out grading and analysis given by companies offering ratings services. A quick inquiry with the South Carolina Department of Insurance would also serve to provide information on the operations of the insurance company as well as on its complaint record. Consumers should avoid transacting with insurance companies not duly licensed by the state, as this can lead to problems, even fraud, later on.

Because a typical auto insurance policy costs several hundreds of dollars annually, policyholders should find ways to enjoy discounts and lower rates offered by most insurance providers. One sure way of getting lower premium rates would be to drive safely at all times, avoiding traffic violations and accidents. This lead to excellent driving record and lower premium rates compared to drivers with high risk status. Having a higher deductible also leads to lower rates, as well as enrolling multiple cars in a policy, completion of driver’s education courses, installing anti-theft devices, and having airbags. If the vehicle has a low market value, it would also make sense to drop comprehensive and collision coverage. Being married or being a good student also makes an policyholder eligible to discounts, if offered by the provider. It is also good to remember that making several claims with the insurance provider can lead to higher premium rates.

Policyholders who figured in automobile accidents should do well to contact their insurance providers as well as document the extent of the damage done. Making the proper reports will also help determine which party is at fault and might facilitate the claims process. For property damage, the state of South Carolina has its own automobile insurance arbitration process which settles the dispute over damage liability claim. It is during this process that the person at fault is determined and how much claims payment will be made.

We help our South Carolina customers in Columbia, Charleston, North Charleston, Greenville, Rock Hill, Mount Pleasant, Spartanburg, Sumter, SC and other cities in the Palmetto State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our South Carolina insurance agent and broker network, you can easily compare rates from multiple insurers.

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