GREENVILLE, S.C. (FOX Carolina) – Homeowners and car owners in South Carolina are about to pay a lot more for insurance, according to the experts at Insurify.
South Carolina is one of 15 states, according to Insurify, facing an imminent insurance crisis.
The report said hurricane damage is fueling the increase and it projected home insurance rates in South Carolina will increase another 11% by the end of the year.
South Carolinians already pay 29% more than the average U.S. homeowner, the report said.
Car insurance is projected to increase even more. So far this year, the report said it has increased 31% but it’s expected to rise to 38% by the end of the year.
This increase, however, is not completely hurricane related.
Insurify senior editor Chris Shafer said the spike in auto insurance rates is connected to an opinion issued by the state supreme court last year, which essentially expanded what car insurance companies have to cover.
The supreme court ruled car insurance companies cannot limit uninsured motorist coverage for property damage to just the cars listed on the policy.
“Insurers basically have to cover all properties registered to the property holder and their family. So what you’re seeing is a tremendous increase in the coverage requirements for insurers and that’s really what’s impacting the higher rates,“ Shafer said. ”Insurers are looking to kind of brace for additional costs they’ll have to pay and they’re trying to get that on the front end here.”
Shafer said there are steps policyholders can take to mitigate the increased cost.
He said it’s very important to shop around before you renew a policy.
“You have to look at your insurance as a living breathing animal,” Shafer said. “It is in your best interest whenever it is time for policy renewal time to compare quotes from several insurers.”
Shafer said this is because different companies rate your risks differently.
He also said homeowners might be able to lower their insurance rates by making improvements to their house.
These could include adding storm shutters or a home security system, but Shafer said, policyholders need to make sure they inform their insurance companies about these changes.
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Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.