South Carolinians typically pay more for car insurance: Here's why

CHARLESTON COUNTY, S.C. (WCBD) -- South Carolinians may be paying more for car insurance compared to drivers in other states.

A new report from MoneyGeek analyzed the cost of car insurance across the U.S. in July 2023. Mark Fitzpatrick, content director for MoneyGeek, said South Carolina leans toward to expensive side.

"By our calculations, South Carolina is one of the 10 most expensive states for car insurance," he said.

According to the study, the average price of full-coverage insurance in South Carolina is $1,286 if paid in full. It's about a 45% increase from the national average of $884.

Fitzpatrick said there are many factors that go into determining a driver's premium.

"What is most important for anyone's personal rates is their driving record and if they are particularly young -- their age," he said. "A lot of people once you get to 25-30 your car insurance rates based on your age are going to stay very stable."

Other factors include annual mileage, gender, and claim history. But there are other aspects that drivers may not think about, including their zip code.

"So if an insurer thinks historically the new place you live maybe has higher traffic congestion and a higher chance of accidents -- maybe has a slightly higher car theft rate, these are part of the calculations that go into what makes your personal insurance rate," Fitzpatrick explained.

According to MoneyGeek data, the average full coverage insurance cost is $1,658 in North Charleston. In the City of Charleston, the average price is almost 7% cheaper at $1,552.

However, Fitzpatrick said in other areas the changes can be more drastic.

"Say you move from a rural area without much traffic to a heavily congested dense urban area in South Carolina, you could see major changes to the tune of hundreds of dollars," he said.

Fitzpatrick also explained that South Carolina's prices may be higher because of the presence of some insurance companies in the state with higher premiums.

"There tend to be some insurance carriers present there like Bristol West and Dairyland that drive up that average a bit," he said.

Drivers can also face higher costs depending on who they get insurance from.

"You could be the exact same person and one insurance company is gonna charge you $2,000 for a year or six months -- while another is going to charge you 1,000," Fitzpatrick said.

He recommends drivers shop around and compare prices before making a decision.

Experts also recommend paying the entire annual or six-month premium at once, bundling policies, and keeping a clean driving record to save money.