South Carolina insurance
South Carolina insurance overview
South Carolina is an at-fault state regarding car accident claims. This designation fundamentally affects how financial responsibility is handled after an accident.
What does that mean?
Being "at fault" in South Carolina means you are legally responsible for an accident, so your mandatory liability auto insurance pays for the injuries and property damage you cause to other people. Because liability coverage is designated for the victim's losses, it will not pay for your own injuries or vehicle repairs; you must purchase optional coverages (like Medical Payments or Collision) to protect yourself financially if you are the responsible driver.
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South Carolina insurance requirements
Drivers in South Carolina are required by law to have auto insurance to drive legally in the state.
Because South Carolina operates under a tort (at-fault) system, the law mandates that you carry specific minimum coverages to pay for damages you might cause to others, as well as coverage to protect yourself against drivers who break the law by driving without insurance. Whether you're seeking cheap car insurance or affordable auto insurance, understanding these requirements is essential before requesting an auto insurance quote.
Mandatory insurance requirements
To drive legally in South Carolina, your car insurance policy must include the following two types of coverage with these minimum limits:
1. Liability insurance
This pays for injuries and property damage you cause to others. The minimum limits required are:
- $25,000 for bodily injury per person.
- $50,000 for bodily injury to all persons in one accident.
- $25,000 for property damage in one accident.
2. Uninsured motorist coverage
This coverage protects you, the policyholder. It pays for your injuries or property damage if you are hit by a driver who has no insurance or by a hit-and-run driver.
- You must carry uninsured motorist coverage equal to the minimum liability limits listed above.
- This coverage typically comes with a $200 deductible.
Optional coverages
While the state requires the coverages listed above, other types are optional:
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Underinsured motorist coverage: This covers you when the at-fault driver has insurance, but their limits are too low to pay for all your medical bills or damages.
- Insurance companies are required by law to offer this to you, but you are not required to purchase it.
- If you choose not to buy it, you must sign a form confirming you have rejected the optional coverage.
- Physical damage (collision & comprehensive): Coverage for damage to your own vehicle (such as hitting a tree, fire, theft, or vandalism) is not required by state law. However, if you have a loan on your vehicle, your lender may require you to carry these coverages.
Special vehicles
If you are driving oversize or overweight vehicles (such as a dump truck), the South Carolina Department of Transportation also requires the same minimum liability and uninsured motorist limits.
What to do in case of an accident
Notify your insurance company
If you are involved in an accident—especially if you are sued or receive a legal summons—you must notify your insurance company immediately.
- Legal Defense: Under South Carolina's tort system, your liability insurance covers lawsuits accusing you of negligence. Your insurer has a duty to provide a lawyer to represent you.
- Settlements: The insurance company will pay for damages or settlements up to your policy limits. If a judgment exceeds those limits, you are responsible for paying the difference.
Handling repairs and body shops
If your vehicle requires repairs, you have specific rights regarding where the work is done:
- Choice of Shop: You can have your car repaired at any body shop you choose. An adjuster may recommend a specific shop, but you are not required to use it.
- Payment Limits: Regardless of the shop you choose, the insurance adjuster will calculate the claim payment based on the market price for repairs and local average rates for parts and labor.
Understanding "total loss" vs. repair
In South Carolina, a vehicle is considered a "total loss" if the cost of repairs is 75% or more of the vehicle's actual cash value (ACV).
- Valuation: The insurance company is required to pay you the actual cash value of the vehicle the moment before the crash.
- Blue Book vs. market value: Insurers do not have to pay the "Blue Book" value; that is only a guide. They must pay what comparable used cars (same make, model, year, mileage) are selling for in your area.
- Keeping the car: You may retain the salvaged vehicle, but the insurer will deduct the salvage value from your payout.
Dealing with the other driver
How your expenses are covered depends on who was at fault and whether they are insured:
If the other driver is at fault
- Rental cars: The at-fault driver's insurance company is required by law to reimburse you for "loss of use," which covers reasonable and necessary rental car costs while your vehicle is being repaired.
- Underinsured motorists: If the at-fault driver has insurance but it is not enough to cover your medical bills or damages, your own underinsured motorist coverage (if you purchased this optional protection) will pay the difference.
If the other driver is uninsured or flees (hit-and-run):
- Uninsured motorist coverage: You will file a claim under your own policy's uninsured motorist coverage, which is mandatory in South Carolina.
- Deductible: This specific coverage typically carries a $200 deductible. However, if your insurance carrier eventually recovers money from the at-fault driver, they should refund this deductible to you.
Managing expectations for payouts
Insurance companies are generally expected to pay claims in a "prompt and reasonable" amount of time, but there is no strict statutory time limit for every scenario.
- Delays: Claims may take longer if there are complex coverage issues, inclement weather, or multiple vehicles involved.
- Disputes: If you believe a company is not handling your claim correctly, you can file a complaint with the South Carolina Department of Insurance's Office of Consumer Services.
SR-22 requirements in South Carolina
What is an SR-22?
An SR-22 is a certificate of financial responsibility. It is a specific form that your insurance company files with the South Carolina Department of Motor Vehicles (SCDMV) to prove that you are maintaining the minimum automobile liability insurance required by state law. It essentially serves as a guarantee to the state that you are insured, and your insurance company is often required to notify the SCDMV if your policy is canceled or lapses.
When do I need one?
You are generally required to file an SR-22 if you are considered a "high-risk" driver or are reinstating your license after certain serious violations.
According to the SCDMV and other sources, you must have your insurance company file an SR-22 if:
1. You are caught driving without insurance:
If you are found guilty of driving a vehicle you own without insurance, your license and registration will be suspended. To reinstate them, you must pay a $600 uninsured motorist fee and file an SR-22.
2. You are convicted of serious traffic offenses. These include:
- DUI (Driving Under the Influence) or DWI.
- Reckless driving.
- Refusing a breathalyzer test.
- Repeated traffic violations.
- You are involved in an at-fault accident: specifically one that causes injuries or death.
- You are reinstating a suspended license: An SR-22 is required to clear suspension periods for violations such as excessive points for a minor, operating an unlicensed taxi, or being a non-owner uninsured motorist.
How long must you keep it?
In South Carolina, you are typically required to maintain the SR-22 filing for three years.
- For driving without insurance: The three-year requirement begins starting with the date of your suspension.
- Removal: After three years, you can notify your insurance company to cancel the SR-22 filing, provided you have satisfied the state's requirements.
What is the impact on your insurance?
Requiring an SR-22 signals to insurance companies that you are a high-risk driver. As a result, some companies will likely charge you higher premiums to offset the added risk of covering you.
Finding the right coverage
Whether you need minimum liability coverage or more comprehensive protection, it's important to compare auto insurance quotes from multiple providers. Many companies offer an online auto insurance quote tool that makes it easy to see your options. If you're looking for cheap auto insurance or affordable auto insurance, getting a fast auto insurance quote can help you find competitive rates quickly. Some insurers even provide an instant auto insurance quote or same-day auto insurance for those who need coverage immediately. When shopping for the best auto insurance, don't just look at price—consider the company's customer service, claims process, and financial stability. Taking the time to get a car insurance quote from several providers ensures you're getting the coverage you need at a price that works for your budget.
FAQs
South Carolina state law requires all drivers to carry a minimum of 25/50/25 liability coverage — $25,000 for bodily injury per person, $50,000 per accident, and $25,000 for property damage. Drivers must also carry uninsured motorist coverage at the same minimum limits. AssuranceAmerica offers affordable auto insurance policies that meet South Carolina's minimum requirements while keeping you financially protected on the road.
Driving without insurance in South Carolina can result in serious penalties, including fines, license suspension, and vehicle registration revocation. The state actively enforces auto insurance requirements through its online verification system. Getting covered with an AssuranceAmerica auto insurance policy helps South Carolina drivers avoid costly penalties and stay compliant with state law.
South Carolina mandates that all drivers carry uninsured motorist coverage as part of their auto insurance policy. This protection covers medical expenses and damages if you're involved in an accident with an uninsured or underinsured driver. AssuranceAmerica includes uninsured motorist coverage options that meet South Carolina's legal requirements and help protect drivers from unexpected out-of-pocket costs.
South Carolina may require high-risk drivers to file an SR-22 certificate of financial responsibility following certain violations, such as DUIs or driving without insurance. An SR-22 is not a separate insurance policy but a form filed by your insurer proving you carry the state's required minimum coverage. AssuranceAmerica can help qualifying drivers obtain the SR-22 filing needed to reinstate their driving privileges.
While South Carolina's minimum liability limits satisfy legal requirements, they may not fully protect drivers in the event of a serious accident. Experts recommend considering additional coverage such as collision, comprehensive, and medical payments coverage for greater financial protection. AssuranceAmerica helps South Carolina drivers find customizable auto insurance policies that go beyond the state minimums to cover the unexpected.