South Carolina minimum car insurance and uninsured motorist rules

The Code states these as "twenty-five thousand dollars," [1] "fifty thousand dollars," [1] and "twenty-five thousand dollars." [1] People often write the combination as 25/50/25. Section 38-77-140(B) adds that "Nothing in this article prevents an insurer from issuing, selling, or delivering a policy providing liability coverage in excess of these requirements." [1] Minimum limits are the least the law requires, not a measure of what a crash can cost.

Under § 38-77-150(A), no automobile insurance policy may be issued or delivered unless it contains an uninsured motorist provision "undertaking to pay the insured all sums which he is legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle, within limits which may be no less than the requirements of Section 38-77-140." [2] It must also provide "no less than twenty-five thousand dollars' coverage for injury to or destruction of the property of the insured in any one accident but may provide an exclusion of the first two hundred dollars of the loss or damage." [2]

Two procedural points are in the same section:

• No action may be brought under the uninsured motorist provision "unless copies of the pleadings in the action establishing liability are served in the manner provided by law upon the insurer writing the uninsured motorist provision." [2]
• The insurer "has the right to appear and defend in the name of the uninsured motorist" [2] and has thirty days after service to appear.

Section 38-77-160 says insurers "shall offer, at the option of the insured, uninsured motorist coverage up to the limits of the insured's liability coverage in addition to the mandatory coverage," [2] and "shall also offer, at the option of the insured, underinsured motorist coverage up to the limits of the insured liability coverage to provide coverage in the event that damages are sustained in excess of the liability limits carried by an at-fault insured or underinsured motorist." [2]

The same section says that "No underinsured motorist policy may contain a clause requiring the insurer's consent to settlement with the at-fault party," [2] and that the underinsured insurer may "assume control of the defense of action for its own benefit" [2] if the at-fault driver's insurer pays its limits to settle part of the claims. How stacking, "excess" coverage and your own policy's wording work together is a question for an attorney or your agent.

Section 38-77-144 states: "There is no personal injury protection (PIP) coverage mandated under the automobile insurance laws of this State." [3] If an insurer sells no-fault, medical payment or economic loss coverage, "the coverage shall not be assigned or subrogated and is not subject to a setoff." [3] Whether your own policy includes medical payments coverage is stated on your declarations page.

• Keep it in force. Section 56-10-10 says every owner of a motor vehicle required to be registered in South Carolina "shall maintain the security required by Section 56-10-20 with respect to each motor vehicle owned by him throughout the period the registration is in effect." [4]
• Carry proof. Section 56-10-225(B): "The owner of a motor vehicle must maintain proof of financial responsibility in the motor vehicle at all times, and it must be displayed upon demand of a police officer or any other person duly authorized by law." [4] Proof "may be provided by use of a mobile electronic device in a format issued by an automobile insurer." [4]
• Driving uninsured is a misdemeanor. Under § 56-10-520(A), it is "unlawful for a person who owns an uninsured motor vehicle licensed in this State or subject to registration in this State to operate or allow the operation of the uninsured motor vehicle in this State." [5] A first offense "must be fined not less than one hundred dollars and not more than two hundred dollars or imprisoned for thirty days," [5] and the Department of Motor Vehicles must suspend the owner's driver's license, registration and plates until a reinstatement fee is paid. The statute sets that fee at "six hundred dollars until adjusted," [5] with annual adjustment by the Department of Insurance. Check the current amount with the Department of Motor Vehicles.
• Accidents. Section 56-10-530 provides for suspension when an uninsured vehicle is "involved in a reportable accident in the State resulting in death, injury, or property damage," [5] with an opportunity for a contested-case hearing.

What happened to the uninsured motorist fee?

Older guides describe an option to register an uninsured vehicle by paying an annual fee. The Code section that created it, § 56-10-510, now reads "Reserved." Its history states: "Reserved by 2023 Act No. 51, SECTION 5, eff July 1, 2024." [5] Some other sections of the Code still mention the fee, for example § 38-77-150(C). Do not assume an uninsured driver paid a fee and is therefore lawful; § 56-10-520 makes operating an uninsured vehicle unlawful.

A person hurt by an uninsured driver can look to their own policy's uninsured motorist coverage under § 38-77-150, and to any underinsured coverage they bought under § 38-77-160 if the at-fault driver's limits are too low. Whether a claim is worth pursuing, and against whom, is a question for an attorney. Keep the police report number and the other driver's information; see how to get a Columbia crash report.

• South Carolina deadlines: how long do you have?
• Is South Carolina a comparative fault state?
• Do you have to report a car accident in South Carolina?
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