Average Cost of Car Insurance in South Carolina

Insurers use a range of factors to assess the risk they take by binding a policy with a driver. If a driver is at high risk of filing a claim, they translate this risk into higher premiums. Insurers use state and driver-specific factors to assess a driver’s risk. Let’s take a look at how insurers determine the average rate in the Palmetto State, how much policies cost in the state, and the average type of car insurance policy in South Carolina. 

South Carolina automobile insurance policies differ from driver to driver, but on average, residents in the state carry a full coverage policy from one of the top insurers in the state with additional coverages added on and stackable discounts applied. While drivers in the Palmetto State aren’t legally required to carry full coverage policies, they may opt for such a policy for the safety it provides when they get behind the wheel.

The minimum legal coverage required in the state is $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $25,000 in property damage liability per accident (25/50/25 liability coverage), and the same 25/50/25 limit for uninsured motorist coverage (UM). Those who lease or finance their vehicles may be required to carry collision and comprehensive coverage as a part of their legally binding leasing or financing agreements.

Since South Carolina isn’t a no-fault state but a tort state, drivers must carry liability coverage if they cause an accident. Policyholders carry liability coverage to protect other drivers on the road, as the victim in an accident caused by the policyholder will use the at-fault driver’s liability coverage for their medical expenses and vehicle repairs. Those who opt for a full coverage policy may carry additional coverages to cover their own expenses, not just the victim’s expenses.

A full coverage policy in South Carolina may contain liability and UM coverages with limits higher than 25/50/25, underinsured motorist coverage (UIM), a first-party medical benefit like medical payments coverage (MedPay) since personal injury protection (PIP) isn’t offered in the state, collision coverage, and comprehensive coverage, among other optional coverages.

A full coverage policy with plenty of additional coverage types will help protect the policyholder in various accident scenarios, regardless of who’s at fault. Many drivers find the higher premiums associated with a full coverage policy are worth the investment in their safety and long-term savings.

The average cost of car insurance in South Carolina is about $1,640 annually for a full coverage policy. Even though the average premium in the Palmetto State is on par with the national average, some drivers may not be eligible for this rate. Depending on one’s characteristics and driving history, drivers may pay rates higher or lower than the state average. 

While premiums differ from driver to driver, the average rate in the state typically comes from two metrics: population and number of uninsured drivers. States with higher-than-average populations of drivers or uninsured drivers typically have higher-than-average premiums because drivers file claims more often than average.

Drivers in highly populated states are more likely to file claims because they’re statistically more likely to get into accidents since more drivers are on the road. A higher-than-average percentage of claims filed in a state means the state’s average premium cost is more expensive. Similarly, if a state has a higher-than-average number of uninsured drivers, policyholders are more likely to get into accidents with uninsured drivers, putting strains on the insurance and court systems and causing premium rates to rise. 

South Carolina has an average population and a lower-than-average population of uninsured drivers. About 11% of drivers in the Palmetto State are uninsured, just less than the national average of 12% of drivers lacking sufficient coverage. Thus, the average premium in the state is on par with the national average since state statistics don’t differ much from national ones. 

If the premiums for your full coverage policy are higher than the state average of $1,640 annually, it may be because you live in a densely populated ZIP code, have a poor driving or insurance record, or your insurer has higher-than-average base rates with minimal opportunities for discounts. 

The cost of car insurance in South Carolina per month is, on average, about $135 for a full coverage policy or about $70 per month for a minimum coverage one. However, one must remember that a premium isn’t the only cost associated with a car insurance policy.

While a minimum coverage policy is often the cheapest in the state, some risk is associated with such little coverage. Suppose a driver with a minimum policy causes an accident that sends both drivers to the hospital and totals both cars. In that case, the at-fault driver’s liability coverage will cover only the victim’s expenses. Thus, the policyholder is liable for their medical bills, vehicle repairs, and any remaining expenses the victim incurs. 

Since South Carolina isn’t a no-fault state but a tort state, meaning at least one driver must be deemed at fault in an accident, drivers can sue one another for accident expenses. If an at-fault policyholder with a minimum coverage policy can’t cover all the victim’s costs, the victim may sue the at-fault driver for pain and suffering to receive assistance for their bills. Thus, the at-fault driver will be on the hook for the victim’s expenses, plus any legal defense fees they may incur during the lawsuit. 

It can be tempting to cash in on the short-term savings associated with a minimum coverage policy, but in the long run, carrying a full coverage policy may be more cost-effective. Those with minimum coverage policies risk financial ruin in a worst-case scenario accident. In contrast, those with full coverage policies can protect their savings and peace of mind even in catastrophic situations. 

Auto insurance rates in South Carolina typically align with the national average, as the average premium for a full coverage policy in the state costs about $1,640 annually. Depending on a few crucial factors, drivers may be eligible for rates in this range depending on their risk level or end up paying premiums higher or lower than average.

The top insurers in the state typically offer rates in the ballpark of the state average. However, drivers may not be eligible for the average rate if they’re considered high-risk. Car insurance rates vary from driver to driver depending on one’s risk of filing a claim. Insurers use several factors to determine a driver’s risk, like driving, non-driving, and state metrics.

Insurers will use factors like one’s driving record, insurance history, age, gender, and ZIP code, among several other factors, to determine the risk they take when binding a policy. If drivers meet specific criteria that make them a higher risk to insure, insurers may quote them at a higher-than-average rate. This especially applies to drivers with a history of driving without insurance or an SR-22 on file.

Even drivers with clean driving records may be considered high-risk. For example, drivers in densely populated cities like Charleston drive on busy roads, meaning they’re statistically more likely to get into accidents than drivers in suburban or rural areas. Thus, city drivers are riskier to insure than the average driver, even if they have a clean driving record, and may pay higher premiums. 

No, car insurance isn’t expensive in South Carolina. The average full coverage policy costs about $1,640 annually in premiums, just under the national average of $1,670 annually. While this average cost may be expensive for some people, the average price of a policy in the Palmetto State is objectively inexpensive.

If you’re searching for a full coverage policy in the Palmetto State at or below the average premium cost, the best way to find a policy that meets your needs and budget is to get and compare quotes online. Getting and comparing quotes is a great way to see all your options to get a policy that closely aligns with your values. 

Luckily, you’ve come to the right place for quotes. Here at Clovered, we offer a free quoting tool you can use to get your unique quotes in minutes. If you’d rather chat with a professional about your policy or quotes, you can contact one of our licensed agents at 833-255-4117 or agent@clovered.com.