South Carolina Auto Insurance Requirements: Understanding The Law

South Carolina law requires drivers to have auto liability insurance. When applying for or renewing a driver's license, vehicle owners must certify that they are insured by an automobile liability policy or that they do not own a vehicle. The minimum insurance requirements are $25,000 for bodily injury per person, $50,000 for total bodily injury per accident, and $25,000 for property damage per accident. Drivers must also have uninsured motorist coverage, which is also set at a minimum of $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.

Minimum liability coverage

In South Carolina, drivers are legally required to carry liability insurance and uninsured motorist coverage. The minimum liability coverage for bodily injury is $25,000 per person and $50,000 for all persons injured in one accident. This covers medical expenses, lost wages, and pain and suffering. The minimum limit for property damage liability insurance is $25,000 for all property damage in one accident. This includes damage to other vehicles and other property such as buildings, walls, fences, and equipment.

Uninsured motorist coverage is also required by law in South Carolina, with a minimum coverage of $25,000 per person and $50,000 per accident. This coverage protects the policyholder directly in the event of an accident with an uninsured or hit-and-run driver. There is typically a $200 deductible for uninsured motorist coverage, which will be refunded to the policyholder if the insurance carrier collects back their payout from the uninsured motorist.

While not required by law, drivers in South Carolina may also consider purchasing underinsured motorist coverage. This coverage is similar to uninsured motorist coverage but pays for injuries or property damage if the at-fault driver does not have sufficient insurance to cover the damages. Although it is not mandatory, auto insurers in South Carolina are required to offer underinsured motorist coverage, and it can provide valuable financial protection in the event of an accident.

It is important to note that the minimum liability coverage requirements are the legal minimums, and individuals may choose to purchase higher coverage limits for added protection. The minimum coverage may not be sufficient to cover all expenses in the event of a serious accident, and individuals may be personally financially responsible for any amounts exceeding their policy limits. As such, it is recommended to carefully consider your coverage needs and select the appropriate liability coverage limits.

Uninsured motorist coverage

In the event that you are injured in a hit-and-run accident or by a driver who does not have enough insurance to cover your medical bills or expenses, uninsured motorist coverage can provide financial protection. This coverage will pay for your injuries and property damage up to the policy limits, which in South Carolina, are $25,000 per person for bodily injury and $50,000 for all persons injured in a single accident.

It is important to note that uninsured motorist coverage only applies to bodily injury and not property damage. However, underinsured motorist coverage is also available and can provide additional protection if the at-fault driver's insurance is insufficient to cover your damages. While underinsured motorist coverage is not required by law in South Carolina, it is a valuable option to consider when purchasing auto insurance.

Collision coverage

In the event of an accident, collision coverage can provide valuable financial protection. It covers accidents involving another vehicle, collisions with objects such as trees or guardrails, and even single-vehicle accidents like rolling your car. This coverage ensures that you won't have to pay out of pocket to repair or replace your vehicle, which can provide peace of mind, especially if your vehicle is new or valuable.

It's important to note that collision coverage has some exclusions. It does not cover damage to another vehicle, medical expenses, theft or vandalism, collisions with animals, or damage caused by weather or fallen objects. For protection against these types of incidents, you would need comprehensive coverage in addition to collision coverage.

While collision coverage is optional, it is worth considering, especially if you're leasing or financing a vehicle. By having collision coverage, you can be confident that you won't face significant financial burdens if your vehicle is damaged or totalled in a covered accident.

In South Carolina, the cost of collision coverage will vary depending on personal factors such as age, gender, marital status, and driving record, as well as details about the vehicle and your location within the state. When deciding whether to purchase collision coverage, it's important to weigh the potential costs of repairs or replacement against the annual premium for the coverage.

Comprehensive coverage

South Carolina law requires that you purchase liability and uninsured motorist coverage to drive legally in the state. However, comprehensive coverage is an optional add-on to your auto insurance policy. It is not required by law in South Carolina or any other state.

In South Carolina, comprehensive coverage does not require a deductible for safety glass repairs or replacements. The maximum payout for comprehensive coverage is based on the actual cash value of your vehicle.

Underinsured motorist coverage

For example, let's say you have purchased underinsured motorist coverage in the amount of 25/50/25, which is the minimum required liability coverage in South Carolina. If you are in an accident and the at-fault driver only has minimum coverage, their insurance policy will only pay $25,000 of a $50,000 bodily injury claim and $25,000 of a $40,000 property damage claim. In this case, your underinsured motorist coverage would pay the remaining $25,000 of your bodily injury claim and $15,000 of your property damage claim.

It is important to note that underinsured motorist coverage is secondary, meaning you must first make a claim against the at-fault driver's insurance policy. If their coverage limits do not satisfy the full amount of your damages claim, you can then seek compensation under your own underinsured motorist coverage.

While South Carolina law does not require vehicle owners to purchase underinsured motorist coverage, auto insurers are required to offer it to you, and you may choose to buy it to have additional protection in case of an accident.

Frequently asked questions