Why South Carolina car insurance costs so much — and how drivers can save

South Carolina drivers can’t control the cost of vehicle repairs or the number of claims insurers expect to pay. But they can compare policies, ask for discounts and reconsider optional coverage on older cars.

The expense is not just anecdotal. In a 2025 analysis using 2022 data, the Insurance Research Council ranked South Carolina sixth among states where auto insurance was the least affordable relative to household income. The average expenditure equaled 1.95 percent of median income.

There is no single explanation for the state’s costs. Insurance Research Council research points to factors that can drive premiums, including accident frequency, vehicle-repair costs, injury claims and uninsured motorists.

Nationally, the group said auto insurance losses climbed from 2020 to 2024 amid inflation, more severe injury claims and higher vehicle repair and replacement costs. Each insurer weighs costs and driver characteristics differently.

For consumers, the most effective first step may be to shop around.

The South Carolina Department of Insurance recommends comparing quotes with the same coverage, limits and deductibles. Otherwise, a lower price may reflect less protection. Rates can vary by insurer, and the department says factors include driving history, location, age, vehicle, use and prior coverage.

Drivers should also ask insurers about discounts for bundling auto and home policies, multiple cars, low mileage, a clean driving record, safety equipment, driver education and good grades for eligible students. Some discounts may not be applied automatically.

Raising a collision or comprehensive deductible can lower the premium, but it means paying more out of pocket after a covered claim. For cars with a market value below $1,000, the state insurance department suggests considering liability-only coverage. Collision and comprehensive coverage are optional under state law, though a lender may require them for a financed vehicle.

Drivers should not drop legally required coverage to lower a bill. South Carolina requires liability and uninsured-motorist coverage of at least $25,000 per injured person, $50,000 per crash and $25,000 for property damage. The state also requires uninsured-motorist protection at those minimum limits. Underinsured-motorist coverage is optional; consumers should weigh its cost against the risk of a crash with a driver whose coverage is insufficient.

The department also advises paying renewal premiums on time: South Carolina auto policies do not have a required grace period for renewal payments. Consumers with questions can contact the South Carolina Department of Insurance, which offers assistance through its Office of Consumer Services.

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