Why Is Car Insurance So Expensive In South Carolina?
Car insurance premiums in South Carolina are significantly higher than the national average. Reasons include a higher than average number of drunk driving incidents, a high number of uninsured drivers, plus extreme weather and expensive repair costs.
In 2024, car insurance premiums in South Carolina saw a significant rise of around 38%. This surge in insurance costs affected many car owners, and it’s expected that rates will continue to climb.
There’s no single reason behind the high cost of insurance. This can make it hard for consumers to fully understand why they’re paying more. However, with over two decades of experience in the insurance industry, I can offer some valuable insight into this issue.
Key Takeaways
A major factor driving up car insurance rates in South Carolina is the high number of uninsured drivers.
Other reasons for the high cost include the state’s growing population, severe weather conditions, high rates of drunk driving fatalities, and costly car repairs.
To save on car insurance, it’s a good idea to compare quotes from different insurance providers.
Why Is Car Insurance So Expensive In South Carolina?
Car insurance premiums in South Carolina are significantly higher than the national average. The state ranks poorly for drunk driving, with a high percentage of fatalities caused by impaired drivers.
Additionally, many drivers in the state lack insurance. Other factors contributing to high car insurance rates include extreme weather, expensive repair costs, and a growing population.
Unique Reasons Why Car Insurance In South Carolina Is So High
The cost of South Carolina car insurance can be attributed to the following reasons as noted below.
Population Density
South Carolina’s growing population of nearly 5 million people plays a significant role in driving up car insurance rates. With more residents, especially in urban areas like Charleston and Columbia, there are more cars on the road, which increases the likelihood of accidents, traffic violations, and property damage.
More people also means more vehicles at risk of theft, further increasing premiums. In short, the rising population adds to the overall risk of accidents, theft, and damage, which insurance companies factor into their pricing, resulting in higher premiums for drivers across the state.
Uninsured Drivers
South Carolina’s high percentage of uninsured drivers, which stands at 10.9%, is a key factor that impacts car insurance rates in the state. When a significant portion of the population is driving without insurance, it creates a higher level of risk for insured drivers.
If an uninsured driver is at fault in an accident, the insured driver may not be able to recover damages or medical expenses from the responsible party. As a result, insurance companies must increase premiums to cover the potential costs associated with accidents involving uninsured motorists.
High Repair Costs
Car repair costs in South Carolina went up significantly, with data showing an 11.6% increase in car repair expenses from 2023 to 2024. This rise was much higher than the overall inflation rate during that time.
When the cost of repairing vehicles goes up, insurance companies pay more for claims, particularly for damages to modern cars with advanced technology. To cover these higher repair costs, insurers often raise premiums for all drivers.
Severe Weather
In South Carolina, extreme weather events such as strong storms, hurricanes, and harsh winter conditions are happening more often. These events lead to more insurance claims, which can be costly and hard to predict. To manage these rising expenses, insurance companies often increase rates.
Drunk Driving Fatalities
South Carolina has a troubling record when it comes to drunk driving, with a high percentage of fatalities involving impaired drivers. Drunk drivers accounted for 43% of all traffic fatalities, a significantly higher rate compared to the national average of 32%.
This increases the overall risk for all drivers in the state, making it more expensive to insure a vehicle.
Insurance companies calculate premiums based on the likelihood of accidents, and areas with higher rates of alcohol-related crashes are considered riskier. Since drivers in South Carolina are more likely to be involved in an accident due to impaired driving, insurers must raise premiums to cover the higher costs of claims.
Additionally, states with high drunk driving rates may see more lawsuits, higher medical costs, and greater damage in accidents, all of which contribute to the rising cost of car insurance for residents.
Note: In South Carolina, the law mandates that drivers have uninsured motorist coverage that matches the minimum liability coverage amounts (25/50/25). This coverage usually comes with a deductible of $200.
Factors Causing Your Car Insurance To Be So High
There are several factors that can influence your car insurance rates. Here are some of the most common ones that could affect how much you pay.
Age
Your age can have a big impact on your car insurance rates in South Carolina. Drivers under 25 usually pay higher rates because they are less experienced and more likely to get into accidents.
Older drivers, especially those over 50, tend to pay less because they are seen as safer drivers. However, for drivers over 70, the rates might go up again due to possible health issues or physical limitations that could affect their driving.
Location
Cities with larger populations typically have higher car insurance rates due to factors like more accidents, higher property crime, and increased claims. In South Carolina, areas like Charleston, Goose Creek, and North Charleston tend to have the highest premiums.
On the other hand, smaller towns or rural areas like Aiken, Sumter, and Greenwood have lower rates.
Credit History
In South Carolina, your credit score can affect your car insurance rates. Car insurance companies often look at your credit history to determine your risk as a driver. Drivers with better credit scores are typically seen as more responsible and are less likely to file claims, so they often pay lower premiums.
On the other hand, drivers with poor credit may face higher rates because insurance companies view them as a higher risk.
Claims
Your past claims history plays a big role in determining your car insurance premiums. If you’ve made several claims in the past, especially for accidents where you were at fault, your rates are likely to increase. Insurance companies see a higher number of claims as an indication of higher risk, so they adjust your premium accordingly.
It’s sometimes cheaper to pay out of pocket for minor damages instead of filing a claim if it won’t significantly exceed your deductible.
Gender
In South Carolina, gender can also impact car insurance rates. Statistically, young male drivers are considered higher-risk because they are more likely to be involved in accidents. As a result, males under 25 generally pay higher insurance premiums compared to females of the same age group.
Coverage Level
The level of coverage you choose for your car insurance also directly affects your premium. Higher coverage limits, such as adding comprehensive or collision insurance, will increase your rates because you’re asking the insurance company to pay more in case of a claim. If you select only the minimum coverage required by the state, your premium will be lower.
For example, drivers in South Carolina are required to carry uninsured motorist coverage as a minimum car insurance requirement. Having this compulsory coverage in South Carolina can increase the cost of your car insurance.
Note: Although uninsured motorist coverage is an added cost, it provides important protection in case you’re involved in an accident with an uninsured driver, which can lead to higher expenses for repairs and medical bills.
How To Get Cheaper Car Insurance?
In South Carolina, you can lower your car insurance premiums by using various discounts. Below are some of the common discounts you might be eligible for:
Bundling Discount
If you purchase more than one type of insurance, like auto and home, from the same company, you may be eligible for a bundling discount.
Homeowner Discount
Homeowners who also have their auto insurance with the same company may qualify for a discount.
Multi-Car Discount
If you insure more than one car with the same company, you could receive a discount for having multiple vehicles on the same policy, which is usually cheaper than insuring each car separately.
Good Student Discount
Young drivers with a “B” average or better in school may be eligible for a discount on their car insurance, typically up to 20%.
Safety Features Discount
Cars equipped with safety features like airbags, anti-lock brakes, and daytime running lights often qualify for discounts, ranging from 2% to 30%.
Customer Loyalty Discount
If you’ve been with the same insurance company for a few years, usually three to five, you may receive a loyalty discount for sticking with them over time.
FAQs
What should I do if my car insurance is too high?
If your car insurance is too high, start by comparing quotes from different insurance companies. You may find better deals or discounts. Also, consider raising your deductible, adjusting your coverage, or bundling your policies to lower your premiums. Keeping a clean driving record can also help lower rates over time.
Why did my car insurance rate go up?
Your car insurance rate may have gone up due to several reasons. It could be because of factors like a recent claim, traffic violations, or the overall rise in insurance costs. Changes in your driving habits, the area’s risk level, or even the increasing cost of car repairs can also affect your premium.
Related Content
Cheapest Car Insurance In South Carolina How Much Is Car Insurance In South Carolina? Temporary Car Insurance In South Carolina Low-Income Car Insurance South Carolina Non-Owner Car Insurance In South Carolina Seniors Car Insurance In South Carolina Car Insurance For Teens In South Carolina Home And Auto Insurance In South Carolina Renters Insurance In South Carolina
