Rate Increase in Auto Insurance South Carolina

Reader’s Question:

Rates for auto insurance policies in South Carolina have drastically increased. What is the reason for this?

Michael

Columbia, SC

This increase in the rates of South Carolina automobile insurance polices has been due to the new state requirement on auto insurance. The State of South Carolina has enacted a law which took effect on New Year’s Day of 2007 increasing the minimum liability coverage of its motorists. In this law, the 15/30/10 coverage has been scrapped, replacing it with the 25/50/25 minimum liability. The increase in coverage has been necessitated by the rise in traffic accidents where most of the motorists involved end up writing a check because their coverage was not enough to pay for all the damages sustained. This new law seeks to protect the residents financially because the increase in coverage meant the increase in the amount of money the auto insurance provider is going to extend following any accident. But since most consumers frown upon any increase in the price of products and services, the new act has been accepted but with much objection since this resulted to an increase of up to $300 annually in auto insurance payments. But bear in mind that this law seeks to protect and not to burden motorists. Imagine having to shoulder all the remaining cost for medical and repair bills because of insufficient coverage. The best way to lower your auto insurance premiums is to shop around. With a lot of auto insurance providers competing for customers, you will surely get reasonable quotes from other companies.