Can Getting A New Car Affect My SC Insurance Policy?


South Carolina state flagBecause the type of car that someone drives can play a big part in how much they pay for vehicle coverage, getting a new automobile can often affect a South Carolina resident’s policy. Before switching vehicles, residents are encouraged speak with their coverage providers to determine whether or not a specific automobile will have a positive or negative impact on the overall price of a plan. Often the price change in a policy can sway a policyholder’s decision on which vehicle to purchase. Residents who are selling their cars may also want to exercise caution to avoid potential fines for canceling a policy before the vehicle has been sold.

The cost of South Carolina auto insurance is typically based on a variety of details pertaining to a policyholder’s car. Often a premium is likely to be cheaper for purchasing a vehicle with advanced safety features, good crash test ratings or is equipped with an anti-theft device. On the other hand, some cars may be more prone to theft or damage than others. For example, insuring an automobile listed on the National Insurance Crime Bureau’s list of top ten most stolen vehicles is likely to result in steeper rates for comprehensive coverage, which covers theft.

More expensive or luxurious motor vehicles are also commonly associated with higher premiums for comprehensive and collision coverage. This is because cars with higher values are often more difficult and expensive to repair. For example, if an individual with comprehensive and collision coverage insures a luxury vehicle that suffers damage from falling objects, it is likely to cost the insurer more to repair the damage. If a resident is in need of cheap South Carolina car insurance then it may be beneficial to obtain the potential costs associated with insuring a variety of automobiles to determine the more affordable option.

If a residents wishes to simply sell their vehicle instead of purchasing a new one, there are still precautions that they should take. Drivers are encouraged to refrain from canceling their policy until the vehicle in question has been sold and the necessary paperwork releasing liability is filed with the state. If a motorist cancels their plan while still in possession of the car, they may have to pay the SC Department of Motor Vehicles $5 for each day that the vehicle in question was uninsured. In the event that the vehicle’s registration is suspended when sold, the seller may still have to pay the $200 reinstatement fee.

American flag shaped a South CarolinaIf a motorist’s policy becomes too costly after purchasing a new vehicle, residents are encouraged to consider switching insurers. Shopping around and comparing a variety of quotes can help vehicle owners locate a more affordable policy that is still able to provide an adequate amount of coverage. Residents can obtain free online auto insurance quotes to help make comparisons more efficient and allow drivers to gather a broad range of prices. It is important to note that a new policy should be purchased before a driver cancels their existing one to avoid a lapse in coverage and potential consequences.