Uninsured In South Carolina

In South Carolina, auto insurance is one of the most common types of personal insurance. While South Carolina law requires drivers to purchase liability and uninsured motorist coverage to drive legally, there are still many drivers in the state who are uninsured. In 2022, the state's Department of Insurance recovered over $10 million for consumers by resolving 4,501 insurance-related complaints. In addition, the state provides a fee structure for those who choose to drive without insurance, which includes an annual fee of $550 or a $300 reinstatement fee. When it comes to health insurance, South Carolina uses the federally run health insurance exchange/marketplace, where residents can purchase ACA Marketplace plans. While the state's Medicaid program provides coverage for some residents, there is still a gap in coverage for childless, non-disabled adults with incomes below the poverty level, leaving an estimated 94,000 low-income adults without financial assistance for their health coverage.

South Carolina's uninsured motorist coverage

South Carolina law requires drivers to purchase liability and uninsured motorist coverage to drive legally in the state. Uninsured motorist coverage is insurance that pays you if you are injured and/or your property is damaged by a hit-and-run driver or an uninsured driver. In South Carolina, all drivers are legally required to carry uninsured motorist coverage for personal injuries and related damages of $25,000 per person, or $50,000 for all people, per accident. This is the minimum level required. In addition, all drivers must also carry uninsured motorist coverage for car and property damage of $25,000, minimum.

Underinsured motorist coverage is similar to uninsured motorist coverage, but it pays for your injuries or property damage if the at-fault driver does not have enough insurance to cover your damages or medical bills. Auto insurers are generally required to offer you underinsured motorist coverage in South Carolina, but you are not required to purchase it.

South Carolina drivers seeking to drive uninsured must pay an annual fee of $550 for the privilege of operating an uninsured vehicle on South Carolina highways or a $300 reinstatement fee.

If you are involved in a car accident in South Carolina, you may be able to stack, or combine, uninsured motorist coverage limits within a single car insurance policy as well as across multiple insurance policies. Stacking means that you can use more than one policy to cover bodily damages after an accident.

The number of uninsured people in the coverage gap

The coverage gap exists in states that have not adopted the Affordable Care Act's (ACA) Medicaid expansion for adults who are not eligible for Medicaid coverage or subsidies in the Marketplace. The ACA expanded Medicaid to nonelderly adults with income up to 138% FPL ($20,782 annually for an individual in 2024). However, the expansion is effectively optional for states due to a 2012 Supreme Court ruling. As of February 2024, 40 states and Washington, D.C., have expanded Medicaid.

In the remaining ten states that have not adopted the Medicaid expansion, an estimated 1.5 million individuals fall into the coverage gap. Adults in the coverage gap have incomes above their state's eligibility limit for Medicaid but below the poverty line, making them ineligible for subsidies in the ACA Marketplaces. When the ACA was enacted, it did not anticipate that states would be allowed to opt out of Medicaid expansion. As a result, subsidies in the Marketplaces are unavailable for people with incomes below the poverty line.

The coverage gap disproportionately affects people of color, with over six in ten (62%) of those in the coverage gap being people of color. This disparity is higher than that of non-elderly adults in non-expansion states (53%) and non-elderly adults nationwide (46%). Additionally, more than three-quarters of adults in the coverage gap are concentrated in three southern states: Texas (40%), Florida (19%), and Georgia (12%).

The coverage gap also affects childless, non-disabled adults with income below the poverty level in South Carolina. They are ineligible for Medicaid due to the lack of Medicaid expansion and are also ineligible for Marketplace subsidies because the ACA intended for them to be covered by Medicaid. As a result, an estimated 94,000 low-income adults in South Carolina are in the coverage gap, unable to access financial assistance for their health coverage.

The cost of insurance in SC

The cost of insurance in South Carolina varies depending on the type of insurance and a range of other factors. Here is a breakdown of the costs of different types of insurance in the state:

Health Insurance

The cost of health insurance in South Carolina depends on various factors, including income, age, and circumstances. The state uses the federally run health insurance exchange/marketplace, HealthCare.gov, where residents can purchase ACA Marketplace plans. In 2023, about nine out of ten eligible enrollees saved money on premium payments, with an average savings of $566 per month. After subsidies, the average enrollee's monthly cost was about $60.

South Carolina has not expanded Medicaid, resulting in a coverage gap. An estimated 94,000 low-income adults are ineligible for financial assistance with their health coverage.

Car Insurance

The average cost of car insurance in South Carolina varies depending on the level of coverage, driver demographics, and location. The average cost of full coverage car insurance is $1,893 per year, while minimum coverage costs an average of $606 per year. These rates are lower than the national average.

Monthly, full coverage car insurance costs an average of $158, while minimum coverage costs around $51. Drivers in their 50s and 60s tend to pay the lowest rates, while young drivers pay higher premiums, with 18-year-old males having the highest average premium at $5,867 per year for full coverage.

Location also plays a role, with urban areas and cities with higher traffic congestion tending to have higher rates. For instance, Miley is the most expensive city in South Carolina, with an average car insurance rate of $2,398 annually.

Homeowner's Insurance

The cost of homeowner's insurance in South Carolina depends on various factors, including the location of the property, crime rates, access to emergency services, the type of construction, the age of the house, and the amount of coverage. Frame houses typically cost more to insure than brick houses, and older homes may not qualify for preferred programs or discounts.

Other Insurance Options

In addition to health, car, and homeowner's insurance, South Carolina residents may also consider other types of insurance, such as dental, short-term health, supplemental, accident, and life insurance. The costs of these insurance options can vary based on similar factors as the previously mentioned insurance types.

SC's insurance exchange

South Carolina's health insurance exchange is a vital resource for residents seeking affordable and comprehensive coverage. The state uses the federally run exchange, allowing residents to purchase ACA Marketplace plans through HealthCare.gov. This platform offers residents a wide range of health insurance products from six private insurers, with insurer participation varying across the state.

The SC insurance exchange provides residents with a simple and accessible way to shop for, compare, and select the best health plans for their needs. The exchange also offers financial assistance to eligible individuals and families, helping to lower monthly insurance premiums and out-of-pocket expenses. This financial assistance is determined by income and other factors, ensuring that those who need it most can access quality healthcare.

One of the key benefits of the SC insurance exchange is its ability to provide coverage to those who might otherwise fall through the cracks. For instance, childless, non-disabled adults with incomes below the poverty line are typically ineligible for Medicaid and Marketplace subsidies. However, through the exchange, they may find more affordable options.

Additionally, the SC insurance exchange has seen a surge in enrollment in recent years, thanks in part to the American Rescue Plan (ARP), which enhanced the availability and value of premium subsidies. This trend is expected to continue, as the Inflation Reduction Act has extended these enhanced provisions through 2025.

SC's insurance fraud

Insurance fraud is a serious issue in South Carolina, with the average adult resident paying an additional $1,184 a year in premiums to cover the costs of fraud. It is a felony in the state, and those found guilty face serious repercussions and consequences.

Insurance fraud occurs when an insurance company, agent, adjuster, or consumer commits deliberate deception to obtain illegitimate gains. It can occur during the buying, using, selling, or underwriting of insurance and can be committed by individuals against consumers or insurance companies.

The South Carolina Attorney General's office investigates insurance fraud and provides examples of insurance fraud, including:

• Drivers exaggerating injuries to receive large settlements.
• Drivers underreporting the number of miles driven.
• Drivers failing to report accurate medical history when applying for health insurance.
• Employees exaggerating injuries to collect workers' compensation.
• People exaggerating the amount of stolen items.

The penalties for insurance fraud in South Carolina vary depending on the amount of money involved and the number of convictions. For a first offense, the penalties range from a $100 to $500 fine and up to 30 days in prison for less than $1,000, to a $20,000 to $100,000 fine and up to 10 years in prison for $50,000 or more. A second or subsequent offense, regardless of the amount, is a felony with a fine of $20,000 to $100,000 and up to 10 years in prison.

To combat insurance fraud, South Carolina has established an Insurance Fraud Division within the Office of the Attorney General, which prosecutes violations and works with the State Law Enforcement Division to investigate claims. The state also encourages people to report suspected insurance fraud through its Online Insurance Fraud Reporting System and by submitting complaints and fraud forms.

Frequently asked questions