What is Auto Insurance?
Starter Guide to Auto Insurance Basics
What is Auto Insurance?
Auto Insurance is a service available for most vehicles and vehicle owners and may be required by your state. In South Carolina, everyone must have the state minimum limit of auto insurance which is 25/50/25. Don't worry; I will go over what that means later. If you have a lienholder on your vehicle or, in other words, finance your car, the lien holder requires you to carry full coverage. Full coverage means that you must have "Comprehensive" and "Collision" on your auto Insurance Policy. Every policy and state is different, so you should look at your Declarations page to see what's covered and what's not. Still unsure, contact us and we can go through your coverages together. Continue reading to find out more about liability coverage, comprehensive coverage, and collision coverage.
What is Liability Coverage?
Car Insurance Liability covers the other persons' property damage and injuries when you are at fault in an accident. It makes up two main components: bodily injury liability and property damage liability. Bodily Injury liability covers medical expenses, pain and suffering, and lost wages to the other party. Property damage liability pays for damage to the other persons' vehicle and property like houses, businesses, or other personal property. We offer liability coverage with several auto insurance companies in SC.
What are common liability limits?
Now that you know what auto insurance liability means, let's cover some basic liability limits that are frequently requested from drivers like yourself. Liability coverage limits may differ by the insurance carrier, for example, Progressive offers 25/50/25, 50/100/25, 50/100/50, 100/250/100, and 250/500/250. Here is what each coverage means:
25 or $25,000 is for bodily injury liability, which would be the maximum limit the insurance company would payout for one person injured in an accident
/50 or $50,000 is the maximum limit for two injured parties
/25 or $25,000 is for property damage liability, which is the maximum your insurance carrier would payout for the other person's vehicle or other property.
The higher the coverages on your declarations page, would be your limit of liability.
Uninsured & Underinsured Motorist Coverage
Uninsured Motorist goes into effect when you get in an accident with a driver who does NOT have insurance. The cost of damage is covered until your policy limits are exhausted. When involved in a hit and run, ALWAYS get a police report. If you get a police report, you have the chance of paying a less deductible and the claim may be filed under Uninsured motorist (verify with your agent). Underinsured Motorist covers the remaining cost of damage if the driver at fault does not have the proper coverage limits on their car insurance policy. According to Insurance Information Institute, 9.4% of South Carolina drivers are uninsured. Uninsured motorist should be automatically included in auto insurance in SC.
Collision Coverage
Collision coverage for auto insurance in South Carolina may be needed if you have a lienholder. Collision coverage may only be activated if you were at fault in an accident and would like to get your vehicle fixed. There is a deductible that goes along with this coverage and this can be $250, $500, $750, $1000, and more. Typically, you will have to pay your deductible before you get your vehicle fixed. Every car insurance policy is different, so check with your agent to see if you have full coverage. Some policies require Collision coverage because of the financial institution. Or your car is paid off, but you still want to Insure your vehicle against damage when you're at fault. Collision coverage gives you the ability to get your vehicle fixed with a deductible paid first. The higher the deductible, the lower the premium. For example, a $1000 deductible will have a cheaper premium than someone who has a $500 deductible.
Comprehensive Coverage
Comprehensive coverage insures your vehicle against vandalism, fire, and falling objects. If you break your windshield, this would be covered under comprehensive coverage (check with your agent). Like collision coverage, comprehensive coverage is associated with a deductible and would have to pay the deductible first to get your vehicle fixed. Those who finance their vehicle may be required to have comprehensive coverage. If you experience damage to your car other than collision, you may be covered under comprehensive. Like Collision coverage, comprehensive coverage may be required on your auto insurance in SC. Have more questions? Call us for an instant and affordable phone quote today
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Questions about Auto Insurance?
Discounts for auto insurance?
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Safe driver discount
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Vehicle safety features
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Prior insurance with no lapse in coverage
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Pay in full
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Own a home
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College education
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Multi-car discount
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Bundle home & auto
Does Uber, Lyft, or DoorDash affect my car Insurance?
Yes, ridesharing will affect your auto Insurance premium because more liability is involved on the road consistently. You must tell your agent if you are involved with ridesharing to ensure that your damages will be covered while driving others.
What is SR-22?
SR-22 is a form that is required by the driver's state and is filed to prove that you have insurance. SR-22 is not a separate policy but instead is an addition to the policy requiring the driver to have it on their insurance for a certain period of time.
Does auto insurance cover a rental car?
Rental cars are typically covered if you purchased the endorsement on your auto insurance policy up to $40, $50, or $60 per day up to a specific limit. Rental car is typically inexpensive to add, and we highly recommend you to have it in the event of an accident resulting in your vehicle having to be fixed in a shop.
Do I need car insurance in South Carolina?
Yes, if you have a registered vehicle in South Carolina and you are driving the car, insurance is required by South Carolina.
Have more questions about auto insurance?
Contact us and have a trusted agent answer all the questions you have about auto insurance.