The size and frequency of the claims is making coverage more expensive in South Carolina.
Drivers in South Carolina are finding that they are paying more than they might have to in other states due to the number and frequency of liability insurance claims that are occurring in the state, and the fact that while those practices are perfectly legal, the current system has placed the state at risk of a certain degree of fraud.
There are currently 28 states in which there are not any restrictions when it comes to car accident liability.
Though this lack of limitations to lawsuits when it comes to auto liability insurance can be quite helpful to some families who have greatly suffered as a result of crashes and accidents, it has also opened the doors to fraudsters. These false claims and the continual requirement to check into them have been causing the costs associated with this coverage to continually rise.
As a result of this, liability insurance in South Carolina is sending premiums skyward.
The South Carolina Insurance News Service executive director, Russ Dubisky, explained that “It’s not only perfectly legal, it’s more common that you would see liability claims against family members, not just in circumstances where there is a death, but also just cases of bodily injury.” He also pointed out that within the state, there isn’t any immunity for family members when it comes to liability in auto insurance. It doesn’t matter who was hurt, nor does it matter whether or not it was their fault, it is within their ability to collect from claims in order to pay for the damages as long as a liability policy was present.
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According to Dubisky’s group, this law causes claim activity to rise, which increases costs that are then passed on to the policyholders in the form of higher premiums.
The average rate paid by drivers in South Carolina for auto liability insurance is $461 per year. This makes the state the 19th most expensive in the country for this coverage and is an average of $100 more expensive than what drivers are paying in states to the north.