Driving Record
Your driving history is one of the most significant factors. Accidents, traffic violations, and DUI convictions can dramatically increase premiums. Insurance companies view drivers with clean records as lower risk. Maintaining a clean driving record over time can lead to significant savings through safe driver discounts.
Age and Experience
Younger drivers, especially those under 25, typically pay higher premiums due to lack of experience and higher accident rates. Drivers over 65 may also see increases. Middle-aged drivers with good records usually pay the lowest rates. Some insurers offer discounts for completing driver education courses.
Location
Where you live significantly impacts your rates. Urban areas with higher traffic density, crime rates, and accident frequencies typically have higher premiums. Rural areas generally have lower rates. Your specific ZIP code matters, as insurers use local data to assess risk. Moving to a safer area can reduce your premiums.
Vehicle Type
Sports cars, luxury vehicles, and vehicles with high theft rates cost more to insure. Safe, reliable vehicles with good crash test ratings often qualify for discounts. The cost to repair or replace your vehicle also affects premiums. Before buying a vehicle, research its insurance costs.
Coverage Amounts and Deductibles
Higher coverage limits mean higher premiums, but they provide better protection. Higher deductibles lower premiums but increase out-of-pocket costs when filing claims. Finding the right balance is key. Consider your assets and risk tolerance when choosing coverage levels.
Credit Score
In South Carolina and most states, insurers use credit-based insurance scores. Studies show a correlation between credit scores and claim likelihood. Improving your credit score can lead to lower premiums. Pay bills on time, reduce debt, and monitor your credit report regularly.
Annual Mileage
The more you drive, the higher your risk of accidents. Low-mileage drivers often qualify for discounts. If you work from home or have a short commute, you may save money. Some insurers offer usage-based insurance programs that track your driving and adjust rates accordingly.
Claims History
Frequent claims can increase your premiums, as insurers view you as higher risk. Some companies offer accident forgiveness programs for long-term customers with good records. Consider whether filing small claims is worth potential premium increases.