If you have seen an increase in the price of your auto insurance despite having no changes to your driving record, you are certainly not alone. The cost of car insurance is rising nationwide, and rates in South Carolina generally exceed the national average. As household budgets continue to tighten due to inflation, drivers are left wondering why their auto insurance rates are rising and what they can do to lower them.
What is driving up auto insurance rates?
In general, the rising cost of auto insurance can be attributed to the fact that insurers are facing higher payouts for claims. In recent years, vehicle repairs have gotten more expensive due to new and sophisticated technology. Additionally, the frequency of collisions continues to climb despite advancements in vehicle safety. Experts cite risky behavior behind the wheel, such as cell phone usage or driving under the influence, as the primary cause of insurance claims related to accidents. As a result, insurance carriers are adjusting premiums in an effort to pass the cost of more frequent and expensive claims along to consumers.
Additionally, where you live can influence how much you will pay for your policy. For example, South Carolina experiences frequent severe weather events, such as hurricanes, and insurers must pay out a higher number of claims as a result of storm-related damage. That is why auto insurance in South Carolina tends to be more expensive than the national average. Rates can even vary by zip code, with densely populated areas typically paying higher premiums than rural communities. Cities tend to experience more accidents and higher crime rates, both of which help determine the cost of auto insurance.
Is it possible to lower my rate?
Despite rates rising across the board, you may still be able to lower your auto insurance premium. Your South Carolina Federal Insurance Solutions advisor can help you review your current policy and compare it against other available options. They can also help you find ways to save through bundling policies and identifying discounts for which you may be eligible.
If you are hoping to find additional savings, you can also consider a usage-based-insurance (UBI) program, which is intended to align the cost of your auto insurance with your actual driving habits. Many carriers offer this as an option and use a plug-in device or mobile app to track your behavior behind the wheel. This can be a good option for some, although it is possible that your premium may increase based on the results of the program. Our advisors can help you determine if a UBI with one of our carriers, such as Snapshot by Progressive, SmartRide by Nationwide, or IntelliDrive by Travelers, is a good option for you.
The advisors at South Carolina Federal Insurance Solutions are prepared to help you navigate today’s auto insurance market and find a policy that meets your needs. Contact us today to get started with a complimentary insurance review.
