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.

Will My Auto Insurance Increase After An Accident?

Reader’s Question:

My cousin has always been a good driver until he got into an accident he caused recently. He was worried about his auto insurance,  that it would just increase if he renews his policy. How much will his rate increase after a driver has gotten into one accident?

Missouri

James

Kansas City, MO

If a driver has been into one vehicular accident, it’s possible that the driver’s auto insurance rates will increase but it varies from state to state and from one company to another. However, it will so much depend on the kind and seriousness of the car accident and who is found to be at fault. If the driver was drunk during the accident, there’s a chance for the policy not to be renewed. He can still be able to get auto car insurance but it would be more costly.

In case the driver has had a good driving record, like your cousin’s case, most auto insurance providers won’t necessarily increase their rates if a driver is found to be at-fault in a rather minor car accident, especially if the driver has been with them for five years. The rate increase depends on several factors like the Missouri state law and the rating plan of the auto insurance provider.

Under the state law or by an auto insurance provider, a minor or first-time vehicular accident may be forgiven. So if you are purchasing auto car insurance, make certain to ask if a specific auto insurance provider has a first-time accident forgiveness program and if so, you might be eligible for it. Then again, there may be serious auto insurance and legal penalties if the accident involves serious physical injuries and if the at-fault driver is under the influence while operating the vehicle. There could be a significant increase in auto insurance rates or even a termination of coverage, subject to laws of the state. Apart from that, there may be huge fines and even jail time necessary.