It's illegal for unlicensed insurers to sell insurance, and if you buy from an unlicensed insurer, you have no guarantee that the coverage you pay for will ever be met. While a good auto insurance policy is comprised of several types of coverage, liability insurance is the foundation. Even without an insurance requirement, buying car insurance is a smart way to protect yourself from the costs of accidents. You'll most likely need collision insurance and other comprehensive insurance if you have a car loan or lease.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. The minimum amount of car insurance needed to meet your needs depends on several factors, such as the state in which you live, the value of your vehicle, and the amount of insurance you can afford. The insurance deductible is the amount that is deducted from your insurance claim check if you file a collision or comprehensive claim. Your driving history, the area in which you live, gender and age, marital status, previous insurance coverage, vehicle use, and the make and model of your vehicle are common factors that can affect the price you'll pay for your car insurance.
Auto liability insurance covers you when you're involved in a car accident that causes bodily injury or damage to other people's property. Split-limit car insurance is defined as a policy that divides liability coverage into three separate limits for bodily injury per person, bodily injury by accident, and property damage by accident. If you don't take out enough liability coverage, you could be setting yourself up for a financial disaster if your car insurance can't cover all the bills for a car accident you caused. Collision coverage pays for physical damage to your car as a result of your car's collision with an object, such as a tree or other car.
If your car isn't worth much, you might want to skip buying collision insurance and comprehensive car insurance. The SCDOI developed a tool that allows consumers to compare price estimates from insurance companies that sell auto insurance and homeowners insurance in South Carolina. Once you've selected the insurance coverages you need and an insurance agent or company, there are steps you can take to make sure your money is worth it.
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