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Columbia, SC 29229

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How Much Auto Insurance is Enough?

Car insurance is a superb investment that protects your car, yourself, and your passengers. While car insurance can be a life-saver, are you carrying enough coverage? We often see clients frustrated after an accident when they discover their policy only covers a portion of their financial loss. You could be renewing your premiums every year, but it counts for nothing if it doesn’t cushion you when you need it most.

Do you have car insurance in Columbia, SC? Do you have adequate coverage? If you are not sure, read the guide below from New American Insurance.

Meet the state requirements first

Almost all states have set insurance minimums for drivers to meet when buying car insurance. For instance, South Carolina requires all drivers to have the below minimums:

  • $25,000 bodily injury liability and twice the amount for multiple persons
  • A minimum of $25,000 for property damage liability

Meeting the above requirements is okay, but the state minimums are far below what you need to protect yourself and your assets.

How much liability coverage do you need?

Here, we usually advise motorists to increase liability coverage as high as they can afford. If you are at fault for an accident and accused of inflicting bodily injury or property damage to others, your assets will be on the line if you have insufficient liability coverage.

We usually advise our motorists to carry liability coverage of at least 100/300/100. However, if your assets exceed this amount, we advise you to consider umbrella insurance or excess liability coverage.

How much collision or comprehensive coverage is enough?

Always assume the worst-case scenario when purchasing physical damage coverage. As a rule of thumb, consider coverage that should replace your vehicle when it’s totaled or stolen.

If you are still unsure about the amount of car insurance you should carry, please get in touch with New American Insurance in Columbia, SC for customized advice.

Is basic auto insurance ever enough?

When you are a driver, you need to think about protecting your car and that means having auto insurance. You also need to protect your assets and that is what basic auto insurance is all about. At New American Insurance in Columbia, SC, we use our expertise as independent insurance agents to make sure our clients have the right insurance to meet their needs. 

In South Carolina, basic auto insurance is 25/50/25. This is strictly liability insurance. $25,000 for one person hurt in an accident where you are the driver at fault with a total of $50,000 for all injuries in the accident. Another $25,000 is for damage done to the property. These are reasonable amounts of coverage if you don’t have a lot of assets. 

If you have a loan on your vehicle or you are leasing, you will need to have additional insurance to cover the vehicle itself. This means adding collisions and comprehensive coverage to your policy. 

Collision coverage will help to pay for damage to your vehicle in an accident you are responsible for. It will also pay for the damage as a result of a one-car accident or a hit and run. It comes with a deductible that must be met before coverage begins. 

Comprehensive covers your auto for theft and other damage not resulting from a collision. It covers things like floods, potholes, vandalism, and damage caused by the weather. It also includes glass coverage which will fix or replace your windshield for free with no deductible.  

The answer to the question is basic auto insurance ever enough is yes. If you have few assets, an older car with no loan, and can afford to repair your vehicle if it is damaged, then go for it. 

Contact New American Insurance in Columbia, SC for your auto insurance needs. 

Should South Carolina Residents Add More Auto Insurance Coverage When Traveling Out Of State

New American Insurance offers custom policies to the Columbia, SC community. We want to help our clients protect their assets and alleviate some stress as they deal with life’s challenges. We are an independent insurance agency. We work closely with multiple insurance providers throughout the South.

Is Auto Insurance Necessary When Traveling Out of State

Auto insurance covers you while you use your vehicle to complete tasks. The policy gives you a safety net as you deal with the unpredictable nature of driving. Basic collision coverage takes care of any damages sustained when your vehicle hits something. If you opt for a comprehensive policy, your vehicle is protected in multiple situations. You are covered if someone attempts to steal your vehicle. You are covered if severe weather passes through the area and damages your vehicle. If you are held responsible for any damages or bodily injuries, liability coverage will protect you.

As the weather starts to warm up, many drivers look forward to taking special road trips. If you are planning a vacation away from Columbia, SC, your auto insurance may be impacted. If you are planning to travel from one state to another, your auto insurance will remain active. You will still be covered if you are involved in an accident while visiting Florida. However, if you are planning to travel out of the country, things may be different. Inquire about getting a temporary endorsement if you are traveling to Mexico or Canada. You want to avoid traveling abroad without having any protection if an unexpected accident occurs.

New American Insurance Will Help You Stay Safe On The Road

Visit our website to learn more information about auto insurance.

What auto insurance is mandatory in South Carolina

Auto insurance offers a variety of different types of coverages. Some of them are mandatory, and others are voluntary. At New American Insurance in Lexington, SC, we are independent agents and offer plenty of choices for carriers. With more choices, you can pick a policy that fits your vehicle and your budget. 

South Carolina, like most states, has mandatory auto insurance requirements. It has three-part liability requirements for injury to a person, liability for property damage, and uninsured/ underinsured motorists. If the driver or passenger/passengers in a vehicle accident where you are at fault are injured, you need to have coverage of $25,000 for each person with a total of $50,000 for the entire accident. This can be medical bills, the loss of wages, or suffering and pain. 

The property portion is $25,000 and can be for the other vehicle, but it also covers things like a parked vehicle, fence, or other property damaged as a result of the accident. 

In the case of uninsured motorists, the law in South Carolina protects you. If your vehicle is damaged by a hit and run or an uninsured driver, you must have coverage that is the same as your property damage coverage. Underinsured motorist coverage must be offered to you, but you are not required to carry that coverage. 

The state does not require collision and comprehensive coverage. However, if you lease your vehicle or have an auto loan, chances are the lender or lessor will require that you carry it.  

New American Insurance has the experience residents of Lexington, SC have come to appreciate. For top-quality service and attention to detail, we are the ones to call. Please stop by our office or give us a call to discuss how we can help you find the auto insurance you are looking for. 

States Served

  • South Carolina
  • North Carolina
  • Georgia
  • Maryland
  • Virginia


Partner Carriers

  • AmTrust
  • Chubb
  • Donegal
  • Encompass
  • Guard
  • Kemper
  • Liberty Mutual
  • Main Street
  • Nationwide
  • Safeco
  • State Auto
  • The Hartford
  • Travelers