In South Carolina, the law mandates that all drivers carry auto insurance to operate a vehicle legally. This requirement is outlined in the South Carolina Code of Laws, specifically under Section 38-77-30, which aims to check that every insurable automobile risk is entitled to insurance coverage.
The South Carolina Department of Insurance (SCDOI) oversees the regulation of insurance practices within the state. The SCDOI and the South Carolina Department of Motor Vehicles (SCDMV) work together to enforce insurance regulations while providing options like uninsured motorist registration to help drivers comply with these requirements.
Furthermore, the SCDOI has played a crucial role in helping consumers recover significant insurance-related payments. For example, in 2018, the department assisted policyholders in recovering over $4 million.
What are the Auto Insurance Requirements in South Carolina?
In South Carolina, all drivers are required by law to carry a minimum level of auto insurance coverage to operate a vehicle on public roads legally.
As mandated in SC Code Section 38-77-140, all automobile insurance policies issued in South Carolina must include liability coverage for both bodily injury and property damage.
Specifically, the minimum coverage limits are:
- Bodily Injury Liability: $25,000 per person, $50,000 per accident, covering medical expenses and damages
- Property Damage Liability: $25,000 per accident, covering damages to others' property.
South Carolina also requires drivers to carry uninsured motorist coverage with the same minimum levels as liability coverage (25/50/25). This policy provides additional protection if the at-fault driver's insurance is insufficient to cover the costs of an accident. It is helpful in the state, where 10% of drivers are believed to be underinsured.
South Carolina offers an option for uninsured motorist registration. Drivers who qualify can pay a $600 annual fee instead of purchasing traditional auto insurance. However, they must bear the financial burden for any damages or injuries they cause in an accident.
Moreover, as stated in SC Code Section 38-77-144, Personal Injury Protection (PIP) coverage is not mandated under South Carolina's automobile insurance laws. This means that drivers in the state are not required to carry PIP as part of their auto insurance policy.
Other Types of Coverage Available in South Carolina
Drivers in South Carolina have access to a wide range of coverage options beyond the state-mandated minimum requirements. Drivers can explore various additional types of coverage tailored to their specific needs and preferences.
Collision Coverage
Collision plans are optional auto insurance coverage that covers damage to the insured vehicle from collisions with other vehicles or objects, regardless of responsibility.
The policyholder must pay a deductible before receiving collision insurance. Lower deductibles result in greater premiums, typically $250 to $1,000.
Comprehensive Coverage
Comprehensive coverage is an optional form of auto insurance that protects customers against occurrences other than collisions. This type of coverage provides South Carolina drivers with a broader protection range.
This policy commonly covers theft, vandalism, fire, natural catastrophes (such as hurricanes or floods), falling objects, and collisions with animals.
Medical Payments Coverage (MedPay)
MedPay in South Carolina focuses solely on medical expenses and does not cover lost wages or other non-medical costs. The coverage limits for MedPay can vary, typically from $1,000 to $10,000 per person.
Rental Reimbursement Coverage
Rental reimbursement coverage is an add-on that covers rental cars while the insured vehicle is being repaired. The coverage typically has daily and total maximum limits, such as $30 per day up to $900. These limits can be adjusted based on the policyholder's needs and budget.
Penalties for Driving Without Insurance in South Carolina
According to SC Code Section 38-77-123, driving without insurance in South Carolina carries significant penalties that increase in severity with subsequent offenses.
The state uses an Automobile Liability Insurance Reporting (ALIR) system to monitor and verify auto insurance coverage. These penalties are designed to encourage compliance with the state's mandatory auto insurance laws and protect all road users from the financial risks associated with uninsured drivers.
Uninsured motorists are subject to a fee of $550-$600 and a $5 per day fine for each day without insurance, up to a maximum of $200.
Additionally, their driver's license and vehicle registration may be suspended until proof of insurance is provided, and they must pay a reinstatement fee. A more severe offense results in similar penalties, with the addition of potential jail time of up to 30 days.
The fines remain the same for a third or subsequent offense, but the potential jail time increases to 45 days and six months.
How To Choose the Right Auto Insurance in South Carolina?
Choosing the right auto insurance in South Carolina involves several important steps, starting with understanding the coverage options available.
Beyond these requirements, drivers can consider optional coverages such as collision coverage, which pays for damage from collisions, and comprehensive coverage, which covers non-collision incidents like theft and natural disasters.
When selecting an insurance provider, evaluating factors such as the provider's financial strength, customer satisfaction ratings, range of coverage options, claims process, and customer service reputation is crucial.
Furthermore, drivers should look for discounts for multiple vehicles, good driving records, or bundling auto and home insurance.
South Carolina operates under a tort system, meaning the at-fault driver is responsible for damages. The three basic coverages under this system are bodily injury liability, property damage liability, and uninsured motorist coverage.
For protection, verifying that the insurance company and agent are licensed to do business in South Carolina ensures legal coverage and that the policy will be honored.
The SCDOI offers a License Look-Up Tool, which allows individuals to verify the licensing status of insurance agents and companies operating within the state.
Finally, reading the policy carefully is essential, as it is a legal contract outlining rights and responsibilities. If there are any questions, contacting the insurance agent for clarification is recommended.
What Factors Affect Auto Insurance Rates in South Carolina?
Drivers in South Carolina can manage their premiums effectively by shopping around, maintaining a clean driving record, and taking advantage of available discounts. These strategies help secure affordable car insurance in the state.
It is also important to understand the factors that influence auto insurance rates in South Carolina:
Driving Record
Insurers consider drivers with clean records to be less risky, resulting in lower premiums. However, a single speeding ticket can increase rates by about 24%, while more severe infractions, such as DUIs, can nearly double premiums.
In South Carolina, the average annual premium for full coverage for drivers with a clean record is $1,842. This amount increases to $2,199 after a speeding ticket, representing a 19% rise. Maintaining a clean driving record is essential for keeping insurance costs low, as each violation can significantly impact rates for several years.
Geographic Territory
In South Carolina, geographic location plays a significant role in determining auto insurance rates. Urban areas typically have higher premiums due to increased traffic density, higher accident rates, and a greater likelihood of theft and vandalism. For example, drivers in cities like Charleston or Columbia may pay more than those in rural areas.
Coastal areas may face higher rates due to the risk of hurricane damage, while rural areas might have lower rates. Still, other risks can affect them, such as wildlife collisions and longer emergency response times.
Gender and Age
Gender and age are other significant factors in determining auto insurance rates in South Carolina. Younger drivers, especially males under 25, typically face higher premiums due to their higher risk profile. For instance, a 40-year-old male in South Carolina pays an average annual total coverage premium of $1,863, while a 40-year-old female pays $1,820.
This gender gap tends to narrow with age. Drivers in their 50s and 60s generally enjoy the lowest rates, provided they maintain a clean driving record.
Prior Insurance Coverage
Prior insurance coverage is crucial in determining auto insurance rates in South Carolina. Insurers view drivers with continuous coverage history more favorably, often resulting in lower premiums. Those with gaps in coverage may face higher rates. For example, a driver with no prior insurance might pay up to 30% more than someone with continuous coverage.
The length of prior coverage also matters; those with longer insurance histories may qualify for loyalty discounts. Some South Carolina insurers offer up to 20% discounts for drivers who switch from another company without any coverage lapse.
Vehicle Use
Drivers who use their vehicles for long commutes or business purposes typically pay higher premiums due to increased time on the road and higher accident likelihood.
For instance, someone with a 20-mile daily commute pays 10-15% more than someone who drives only 5 miles per day.
Annual mileage is a key rating factor, so drivers who use their vehicles primarily for pleasure or have low annual mileage (under 7,500 miles) may qualify for low-mileage discounts, potentially saving up to 20% on their premiums.
Prior Insurance Claims
Drivers with a history of frequent or high-cost claims are considered higher risk and may face substantially higher premiums.
The average rate increase after a single claim in South Carolina is about 44%, higher than the national average of 41%. Multiple claims within a short period can lead to even steeper increases or potential policy non-renewal.
How To Save Money on Auto Insurance in South Carolina?
Saving money on auto insurance in South Carolina is a top priority for many drivers, as the cost of coverage can significantly impact household budgets. By understanding the factors that influence insurance rates and following the actions below, drivers in South Carolina can take control of their insurance expenses and keep more money in their pockets.
Take the Highest Deductible
Opting for a higher deductible can significantly lower auto insurance premiums. For instance, choosing a $1,000 deductible instead of a $250 deductible can reduce annual premiums by up to 15-30%.
A higher deductible means drivers will pay more out-of-pocket in case of a claim but enjoy lower monthly premiums.
Shop Around and Compare Prices
One of the most effective ways to save money on auto insurance in South Carolina is to shop around and compare quotes from multiple insurance providers. Rates can vary significantly between companies for the same coverage.
For example, one insurer might offer full coverage for $117 per month, while another might charge $164 for similar coverage. Comparing quotes verifies to get the best deal for specific needs and driving profile.
Ask About Discounts
Drivers should inquire about available discounts to help reduce their premiums. Common discounts include those for insuring multiple cars on one policy, completing driver education courses, being a good student driver under 25, and having vehicles equipped with airbags and other safety features.
Additional discounts may apply for anti-theft devices, low mileage, maintaining an accident-free record, and bundling auto and home insurance with the same company. Bundling home and auto insurance can save between 6% and 23%.
Review and Update Policy Periodically
Regularly reviewing auto insurance policy guarantees that coverage aligns with current needs. Life changes such as getting married, moving, or buying a new car can impact insurance needs. Updating policy accordingly can help avoid paying for unnecessary coverage and be adequately protected.
For example, if a car's market value drops below $1,000, consider dropping collision and comprehensive coverage to save on premiums.
Pay Premium in Advance
Paying an insurance premium well before the due date can sometimes qualify drivers for discounts. Additionally, it helps prevent any lapses in coverage, as there is no grace period for auto insurance in South Carolina. Some insurers offer discounts of up to 10% for paying the annual premium in full.
What To Do After an Auto Accident in South Carolina?
After an auto accident in South Carolina, it is important to be prepared and take the necessary steps for safety and compliance with state laws.
First, if someone is injured, calling 911 is crucial. If the car is drivable, move it out of traffic. Then, use the Wreck Check™ app or download the printable checklist to collect important information such as the other car's details, witness information, and the responding officer's name and badge number.
Take photos and notes of the accident scene, including skid marks, weather, and road conditions. If the car is damaged by a hit-and-run driver or stolen, promptly call the police.
After the accident, drivers must file reports to prove they have auto liability insurance. South Carolina law requires reporting most accidents within 15 days, using either the green Form FR-10 provided by the investigating officer or the Traffic Collision Report or Form FR-309 if law enforcement was not involved.
Drivers can also request a copy of the accident report from the DMV in person or by mail using the Request for Copy of Officer's Report form or Form FR-50. Lastly, filing a claim with the driver's own insurance company or the other driver's insurance company may be necessary.
However, before filing a claim, drivers should review their policy to understand the losses covered and consider the impact on their premium and policy renewal.
How To File and Claim an Insurance Coverage in South Carolina?
To begin, the policyholder should report the accident to their insurance company as soon as possible, providing their policy number and details of the incident. The insurer will assign a claims adjuster to handle the case.
Cooperating with the claims adjuster is essential, as they will investigate the accident, assess the damage, and determine fault. Policyholders should promptly provide any requested information and documents.
If the vehicle requires repairs, the policyholder should obtain itemized estimates from trusted auto repair shops. While the insurer may have a network of preferred shops, South Carolina law allows policyholders to choose their repair facility.
Once the estimates are provided to the claims adjuster, they will present a settlement offer based on their assessment of the damage and the policy coverage.
If the offer seems unfair, the policyholder can negotiate with the adjuster or consult an attorney. After agreeing on the settlement, the policyholder can proceed with vehicle repairs, paying their deductible while the insurance company covers the remaining amount up to the policy limits.
Finally, the policyholder should follow up with the insurer to confirm that all payments have been made and the claim has been resolved. It is also important to keep all records and receipts related to the accident and claim.
What To Do if An Insurance Claim is Denied?
Disputing an auto insurance claim denial in South Carolina can be a challenging and frustrating experience for policyholders. However, by understanding the process and taking the necessary steps, individuals can effectively address their concerns and work toward a resolution.
The first step in disputing a claim denial is carefully reviewing the denial letter the insurance company provided. This letter should outline the reasons for the refusal, such as insufficient evidence, policy exclusions, or disputes over fault or coverage.
After reviewing the denial letter, policyholders should contact their insurance company directly to express their disagreement with the denial. They should provide supporting documentation such as the following:
- Police reports
- Photographs
- Witness statements
- Medical records
- Repair estimates
- A copy of the insurance policy
If the issue remains unresolved after 30 days or the policyholder is unsatisfied with the insurance company's response, they can file a formal complaint using the Consumer Complaint Tool.
Once the complaint is filed, the SCDOI requires the insurance company to respond within seven days. The SCDOI aims to resolve most complaints within 7-10 days by reviewing the details to determine whether the insurer acted in compliance with South Carolina insurance laws and the policyholder's contract.