Auto Insurance Basics: South Carolina's Minimum Requirements

If you're driving in South Carolina, you're required to have auto insurance with specific minimum coverage limits. These include liability insurance and uninsured motorist coverage. Liability insurance is further divided into three parts: bodily injury liability insurance, property damage liability insurance, and uninsured/underinsured motorists coverage. The minimum coverage limits for liability insurance in South Carolina are $25,000 per person for bodily injury, $50,000 for total bodily injury per accident, and $25,000 for property damage per accident. Uninsured motorist coverage protects you if you're in an accident with a driver who doesn't have insurance or can't pay for your damages.

Liability insurance for bodily injury

In South Carolina, drivers are required to carry liability insurance with the following minimum coverage limits: $25,000 per person and $50,000 per accident for bodily injury liability. This means that if you are found to be at fault in a car accident, your insurance will cover the other party's medical bills and injury-related expenses, including legal fees if you are sued, up to $25,000 per person and $50,000 in total. This coverage is crucial, as without it, you may be sued and held legally responsible for paying the other party's medical costs out of your pocket, which could easily exceed your life savings.

Bodily injury liability insurance covers a range of expenses for the other driver and their passengers if you injure them in a car accident. This includes medical expenses such as emergency care, hospital fees, follow-up visits, and medical equipment like crutches. It also covers lost income if the injured party is unable to work due to the accident and funeral costs if the injuries are fatal. Additionally, it can cover legal fees if the injured party sues you, provided your policy includes enough liability coverage.

When choosing a bodily injury liability limit, it is recommended to select a limit that matches or is closest to your net worth. This will help ensure that you have sufficient coverage to protect your finances in the event of an accident. If your net worth is greater than $500,000, you may need to consider purchasing an umbrella insurance policy to provide additional liability protection.

In addition to bodily injury liability insurance, drivers in South Carolina are also required to carry property damage liability insurance with a minimum coverage limit of $25,000 per accident. This coverage pays for the other driver's car repair bills and property damage if you cause an accident.

Uninsured motorist coverage

In South Carolina, drivers are required to carry liability and uninsured motorist coverage. Uninsured motorist coverage pays out if you are injured or your property is damaged by an uninsured or hit-and-run driver.

In South Carolina, the minimum uninsured motorist coverage is $25,000 per person and $50,000 per accident. This coverage is mandatory and is included automatically when you purchase liability insurance. It is also possible to purchase additional coverage.

If you are injured by an uninsured driver, you can still hire a lawyer and file an insurance claim. Your insurance company will treat you the same way as if you were making a claim against another driver.

In addition to uninsured motorist coverage, you may also want to consider underinsured motorist coverage. This coverage pays for a portion of your injuries or damages if the driver who caused the accident does not have adequate insurance. While not required by law in South Carolina, insurance companies are mandated to offer it, and it can provide valuable protection.

Property damage liability insurance

In South Carolina, the minimum property damage liability coverage required is $25,000 per accident. This means that if you cause an accident that results in property damage, your insurance company will pay out up to $25,000 to cover the cost of repairs. If the damage exceeds this amount, you will be responsible for paying the remaining costs.

While the minimum coverage may be sufficient to meet legal requirements, it is important to consider purchasing additional coverage to protect yourself financially in the event of a major accident, especially if you drive a high-value vehicle or live in an area with a high cost of living.

Underinsured motorist coverage

When purchasing car insurance in South Carolina, you are automatically offered underinsured motorist coverage in the same amount as your liability insurance. The minimum limits in South Carolina are $25,000 per individual and $50,000 for all injured individuals. This means that if you are in an accident with an underinsured driver, your underinsured motorist coverage will provide up to $25,000 per person and $50,000 total for all injured individuals in the accident. This coverage can help pay for medical bills, lost wages, pain and suffering, and other losses incurred as a result of the accident.

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 is not sufficient to cover the full amount of your damages, you can then turn to your underinsured motorist coverage to make up the difference.

Additionally, underinsured motorist coverage can be "stacked" in certain situations. Stacking refers to the ability to make claims on two underinsured motorist policies, either within one policy or across two separate policies in your name. This can provide even more financial protection in the event of a serious accident.

While underinsured motorist coverage is not required by law in South Carolina, it is a valuable addition to your car insurance policy. It can provide peace of mind and financial security in the event of an accident with a driver who does not have adequate insurance coverage.

Collision and comprehensive coverage

Collision Coverage

Collision coverage pays for damage to your vehicle if you hit an object or another car. This includes damage caused by potholes. It also covers your vehicle if it overturns. The average cost of collision coverage is $814 per year.

Comprehensive Coverage

Comprehensive coverage pays for non-crash damage, such as weather and fire damage, as well as theft of the vehicle or its parts. It also covers damage from collisions with animals and vandalism. The average cost of comprehensive coverage is $367 per year.

Should You Get Collision and Comprehensive Coverage?

If you have a car loan or lease, your lender will likely require you to have both collision and comprehensive coverage to protect their investment. Once your car loan is paid off, collision and comprehensive coverage become optional. However, even if you don't need them, it's worth considering getting them. Ask yourself: if your car were damaged or stolen, could you easily pay for repairs or a new car? If the answer is no, collision and comprehensive coverage may be a smart investment.

Frequently asked questions