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Gap Insurance in South Carolina
Gap insurance covers the difference between what you owe on your car and its actual cash value in the event of a total loss accident or a theft. If you’re financing your vehicle, investing in gap coverage is a smart choice that will give you peace of mind on the road. Use Insurify, an AI-powered comparison tool, to find cheap gap insurance coverage in minutes!
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Best Companies for Gap Insurance in South Carolina
Monthly car insurance costs for leased vehicles in South Carolina can go as high as $430 and as low as $166, amounting to a $3,168 yearly difference, which shows the importance of shopping around to find the best rates. You can compare average monthly quotes from the best South Carolina auto insurance companies in the table below.
|Insurance Company||Average Monthly Premium for Leased Cars in South Carolina|
|Midvale Home & Auto||$257|
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What is gap insurance?
Short for “guaranteed asset protection,” gap insurance protects your vehicle from depreciation that happens over time. After you buy a new vehicle, your car’s actual cash value goes down anywhere from 20 to 30 percent in just the first year. If you’re financing your vehicle, it’s likely that you will soon end up owing more on your auto loan than your vehicle is actually worth.
If your vehicle is totaled in a car accident or stolen, your auto insurance company will reimburse you for your car’s actual cash value—which can be significantly lower than the outstanding balance on your car loan.
For example, you take out a $15,000 loan to buy a new car. In two years, your vehicle—which is now worth $10,000—is totaled in an accident and your car insurance policy reimburses you for your car’s actual cash value, $10,000, leaving you $5,000 in debt on a car you no longer drive. Gap insurance closes this “gap” between your loan balance and your totaled vehicle’s value.
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Who should buy gap insurance in South Carolina?
South Carolina drivers who are financing their vehicles should consider getting gap coverage because there’s a high chance that they’ll end up with negative equity—owing more on your vehicle than it’s actually worth. However, if you make a down payment of over 20 percent, you may not need gap coverage because your chances of ending up with negative equity are lower.
It’s especially important to consider purchasing a gap insurance policy in the following circumstances:
- You made a low down payment. If you made a down payment of less than 20 percent, your vehicle’s ACV will drop below your loan balance faster. The faster your car loses value, the easier it is to end up “upside-down” on your car.
- It’s going to take you over 60 months to pay off your lender. If you have a long-term leasing or lending agreement, you have a higher chance of ending up with negative equity.
- You regularly cover long distances. Your vehicle will depreciate faster if you use it to drive a high number of miles regularly.
- You’re financing a luxury vehicle. If you’re buying an upscale vehicle, such as a sports car, there’s a higher probability that you’ll end up owing more on your car than its actual cash value because luxury vehicles depreciate much faster than standard models.
South Carolina Gap Insurance Laws
South Carolina state laws do not require drivers to carry gap insurance coverage. The minimum required car insurance coverage in South Carolina is liability coverage (bodily injury and property damage) as well as uninsured/underinsured motorist auto insurance.
However, if you’re financing your vehicle, your lending institution may require you to get gap insurance either as an add-on to your full-coverage policy or as a stand-alone policy. Finding cheap gap insurance is easy with Insurify. Simply spend five minutes answering a few basic questions, and get instant access to 10+ real and accurate quotes to find the best deal.
How much gap insurance do I need in South Carolina?
How much gap insurance coverage you need depends on your loan amount, how fast you anticipate your vehicle to depreciate, and your personal preferences. Statistically, new vehicles lose over 60 percent of their value over the course of five years, with an up to 30 percent loss during the first year.
To get enough gap insurance coverage, estimate the “gap” you anticipate having between your outstanding loan balance and your car’s actual cash value. When you shop for gap insurance with Insurify, you get personalized coverage tips and suggestions for your unique situation. Get a free quote today!
See More: How Much Car Insurance Do I Need?
How Gap Insurance Works in South Carolina
If you’re considering investing in a gap insurance policy, there are a few important things you need to be aware of as a South Carolina driver.
- You will only receive a gap insurance payout in the event of a total loss or a theft. If you get into a car accident and your vehicle is not totaled, you would need to use your collision coverage for repairs.
- Some insurance companies in South Carolina do not offer gap insurance policies for used cars. If you drive a used vehicle, use Insurify to find the best car insurance companies in South Carolina that offer gap insurance coverage.
- Gap insurance works regardless of fault. It will cover the difference between what you owe on your car and its actual cash value whether it was you or the other driver who caused the total loss accident.
- You can only purchase gap insurance as an add-on if you already have a full-coverage policy. If you don’t already have collision and comprehensive coverage, you can still purchase gap insurance as a stand-alone policy—but it’s more expensive.
- Gap insurance doesn’t cover medical bills or lost wages. It only applies to the negative equity you accumulate on your vehicle in the event of a total loss accident or a theft.
How Much Gap Insurance Costs in South Carolina
How much is gap insurance in South Carolina?
The average policyholder in South Carolina pays $330 per month for a car insurance policy with gap insurance. However, what you pay for car insurance will depend on a variety of factors, such as your age and your driving record.
You can expect average monthly car insurance premiums of $330 in South Carolina if you drive a leased vehicle. Keep in mind that some lending institutions require drivers to purchase a full-coverage policy instead of just the minimum required liability and underinsured/uninsured motorist coverage.
Your gap insurance costs specifically depend on where you get your gap insurance policy from. There are several options available to you as a South Carolina driver:
- Car dealership. Even though some car dealerships may tell you that you should get gap insurance with them, it’s usually the most expensive way to purchase a gap insurance policy. You can expect a one-time fee of $700+.
- A financial institution. Lending institutions such as banks and credit unions often offer gap insurance. It’s also a rather expensive option, and you can expect a flat fee of $200–$300+.
- A car insurance company as a stand-alone policy. You can buy gap insurance coverage as a separate policy from a car insurance company in your area. The rates can vary considerably from provider to provider, so use Insurify to find the best deal.
- As an add-on to your full-coverage policy. If you already have comprehensive and collision insurance, you can add gap insurance to your policy for as little as $20 a year. To find the cheapest full-coverage policy with gap insurance as an add-on, use Insurify.
How to Buy Gap Insurance in South Carolina
Whether you want to buy gap insurance as a stand-alone policy or as an add-on to full coverage, it’s important to get at least four quotes from different car insurance companies in South Carolina. No two companies weigh important factors such as your credit score and car model the same way to calculate your rate, so you need to shop around to find the best deal.
Shopping around for car insurance can be time-consuming and stressful. You would need to spend a lot of time answering the same questions over and over again to get a new quote from a different company and then manually compare all the quotes you’ve gathered to see which company is offering you the best premiums, deductibles, coverage limits, and discounts.
To save your time and money, use Insurify. It’s simple: spend five minutes on our trusted site answering a few easy questions about yourself, your vehicle model, and your coverage preferences to instantly get access to 10+ quotes from the best car insurance companies in South Carolina. Compare them side by side in one place, and find the cheapest deal today!
Frequently Asked Questions: Gap Insurance in South Carolina
No, you are not required to carry gap insurance as a South Carolina driver. To comply with insurance laws, you need to purchase the minimum required liability and underinsured/uninsured motorist coverage. However, your lending institution may require you to buy a gap insurance policy if you’re financing your vehicle.
It depends on your car insurance provider and their gap insurance policies. It may be possible to get a partial refund of your gap insurance premium if you pay in advance and pay off your car early, but ultimately, it’s up to your auto insurance provider. It’s normally not possible to receive a full refund of your gap insurance policy after you’ve paid off your car.
The cheapest way to get gap insurance in South Carolina is as an add-on to your full-coverage policy or, if you don’t have comprehensive and collision coverage, as a stand-alone policy. It’s important to get multiple quotes from different insurance providers to find the cheapest deal. Use Insurify to get instant access to 10+ real car insurance quotes today. Get a free quote now!
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The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.