Car insurance is that necessary evil. Everyone’s required to have at least some minimum coverage in South Carolina, but no one really wants to purchase car insurance. So your best bet is to do your homework, be educated and understand the ins and outs to securing the best
car insurance rates in South Carolina
A good first step is to understand the many misconceptions about car insurance. Here we dispel four common myths that will help you in selecting the best coverage at the best price.
- Loyalty pays.You may think working with the same company or contacting a dedicated insurance agent will result in the best insurance rates. That’s not always the case. Many companies save their best deals for new customers, not those who have been loyal customers for a decade. It pays to shop around. Whether online or by reaching out to companies directly, you can get several quotes to compare coverage details and annual costs.
You may also want to consider working with an auto insurance broker who represents multiple companies and can help you select the best coverage and customer service while also helping you snag cheap car insurance in SC.
- Red cars are more expensive to insure.A long-held car insurance belief is that someone with a red sports car would be paying an outrageous amount for car insurance because red cars cost more to insure. Not so. The color of your vehicle does not play into your auto insurance rates.
Instead, vehicle insurance companies look at things like the car’s make, model, age and engine size. Companies also factor in the age of the driver, your driving record and sometimes your credit history when setting rates. So if you’ve had your eye on a red car, go for it! Your insurance rates won’t be impacted.
- Credit ratings don’t factor into your car insurance premiums. Actually, they can. Car insurance companies often check your credit score to gauge how likely you are to file a claim, assigning you a credit-based insurance rating. Research has found customers with higher credit scores cost insurance companies less than those with low credit scores. So, here’s another good reason to keep tabs on your own credit score in case there are discrepancies or issues you need to resolve. It’s just one more way to ensure you’re finding cheap car insurance in SC.
- The insurance company will pay off your car loan if the vehicle is damaged beyond repair.If you purchased your vehicle with a car loan – as most people do – the bank or lending institution will most likely require you to have collision and/or comprehensive insurance coverage. But if your car is totaled in an accident while you still owe money on the loan, you may find yourself in a loss situation. That’s because the insurance company will only pay you the fair market value of the vehicle – not the amount you still own on the car loan.
It’s likely there will be a gap between the fair market value and the loan balance. If you’re purchasing a new car with a loan – especially a brand new vehicle – you may want to look at purchasing additional guaranteed auto protection or GAP insurance to cover the difference.
By knowing how auto insurance rates are established and understanding the specifics of the policy will go a long way to toward securing an affordable insurance policy. Then, your most important task in obtaining cheap car insurance in SC is to compare prices and coverage so you’re getting the best insurance at the very best deal.