South Carolina Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in South Carolina?

• In the state of South Carolina, all vehicles must carry liability insurance.
• To satisfy the minimum auto insurance coverage requirements all vehicles much carry $25,000 per person for bodily injury coverage, $50,000 per accident, and $25,000 for personal property.
• Before you can obtain a driver’s license in the state of South Carolina, you must present proof of auto insurance. If you (or anyone in your household) do not own a car, you will be given the option to check the corresponding box on your application.
• All drivers must carry proof of insurance at all times. If you are caught driving without auto insurance or without proof of coverage, you will receive a ticket and it is possible that you might be arrested and sent to jail.
• If you get ticketed or arrested for driving without insurance, you will have 15 days from the date of the ticket, accident, or arrest to provide proof of insurance. If you do not provide proof of insurance within 15 days, your license can be suspended indefinitely.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in South Carolina, your policy must include minimum liability coverage of:

$25,000 per person for bodily injury coverage,
$50,000 per accident for bodily injury coverage,
and
$25,000 for property damage

What are the Rental Car Insurance Requirements?

In South Carolina, it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required by South Carolina law. It is important to keep in mind that most South Carolina auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required in the state of South Carolina, but because South Carolina is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of South Carolina, you may exclude drivers from coverage or your auto insurance company can write policy that excludes household members. These exclusions are listed in the exclusions section of the policy, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. Because any member of the household that may be excluded from the policy will not be covered under any circumstances under the policy, even in the case of emergencies, it is important to examine your auto insurance policy carefully before you signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If you fail to maintain continuous coverage on a vehicle throughout the period of operation, you have a lapse in coverage. This means that when your insurance lapses, you are driving without insurance. When your insurance lapses, your insurance company is required, by law, to contact the DMV. If you do not provide proof of insurance within 15 days of contact from the DMV, your license can be suspended indefinitely.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of South Carolina, auto insurers are permitted to use Personal Credit History to help determine which products they will offer as well as rates. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool South Carolina auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

South Carolina follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because South Carolina is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, South Carolina resident’s average insurance premium was approximately $756, the 24th most expensive in the nation. This was up 0.3% from the previous year. The national average was $817.

Sources

Insurance Information Institute

South Carolina Department of Insurance