South Carolina Car Insurance Laws & Requirements

All car insurance policies in South Carolina must meet the state’s minimum coverage requirement lest drivers face the consequences of driving uninsured. 

Let’s look at what types of coverage South Carolinians must have on their auto insurance policies, why auto insurance is required in the state, and other frequently asked questions about the car insurance laws in the great state of South Carolina.

The South Carolina insurance regulations require all drivers with cars registered in the state to have an active auto insurance policy. All drivers must have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $25,000 in property damage liability per accident (25/50/25 liability coverage), and the same 25/50/25 limit for uninsured and underinsured motorist coverage (UM). 

Drivers who finance or lease their vehicles may legally require collision and comprehensive coverages on their policies as part of their legally binding contract.

Drivers who at least have the minimum amount of coverage required by law are protected in some accident scenarios and are safe from the legal penalties that come with driving uninsured. Those uninsured in the Palmetto State may face hefty fines and fees, license or registration suspension, or even jail time. 

South Carolina auto insurance requirements state that all drivers registered in the state need a car insurance policy. Drivers must have at least 25/50/25 liability and UM coverages on their policies, or they’re considered uninsured and will face the consequences for breaking the mandatory car insurance law. 

While drivers are only required to have the minimum coverage mandated by state law, liability and UM coverages may not be sufficient in every accident scenario. Those with a minimum coverage policy may risk financial ruin in the event of an at-fault accident, as liability coverage only covers the accident victim in an accident. 

Since South Carolina isn’t a no-fault state but a tort or at-fault state, at least one driver must be considered at-fault in every accident. So, suppose a policyholder with a minimum coverage policy causes an accident. In that case, the accident victim may use their liability coverage to cover their medical expenses up to the policyholder’s coverage limit. However, the policyholder will be on the hook for any of the victim’s remaining expenses after their liability limit is exceeded and their own costs incurred in the accident.

South Carolina requires auto insurance to help drivers protect each other on the road. Setting a mandated coverage minimum helps the state ensure that most people on the road will be covered if they get into an accident.

Setting a required minimum of auto insurance coverage also helps alleviate the overwhelm on the court systems in many states. Setting a minimum amount of required insurance coverage significantly reduces the number of people that seek legal action after an accident. While drivers may still take legal action in the Palmetto State if the at-fault driver doesn’t have adequate coverage for the victim’s expenses, insurance systems relieve much of the burden that would otherwise always fall into the court’s hands. 

The state minimum for south carolina car insurance is 25/50/25 for both liability and UM coverages. Drivers who maintain the minimum amount of coverage required in the state are considered fully protected in the eyes of the law. However, drivers with minimum coverage may only be covered in some accident scenarios.

Drivers who prefer to be protected in various accident scenarios may consider upping their coverage from a minimum to a full coverage policy. A full coverage policy allows the policyholder to tailor their policies to their unique needs, with optional coverages and limits set to their comfort levels and budgets. While it can be tempting to cash in on the cheapest policy in the state, it’s generally more cost-effective to have a full coverage policy with various coverages to offer protection in multiple scenarios. 

A full coverage policy in South Carolina is any policy with a liability limit that exceeds 25/50/25, a UM limit that exceeds 25/50/25, and any additional coverages added on. Drivers in the Palmetto State may opt for additional coverage types like a first-party medical benefit like MedPay, collision coverage, comprehensive coverage, or even GAP coverage. 

While having a policy that makes you confident both behind the wheel and when checking your bank account is crucial, a full coverage policy may provide better protection for your savings in the long run. While the average full coverage policy in South Carolina costs about $1,640 annually, an investment in one’s safety is never a bad choice.

South Carolina auto insurance laws mandate that all drivers must have a limit of at least 25/50/25 in liability and UM coverages. Liability coverage protects other drivers if the policyholder is at-fault in an accident, whereas UM coverage covers the policyholder if they’re in an accident caused by an uninsured motorist. 

In the event of an accident caused by a policyholder with minimum coverage, their insurance would cover the victim’s expenses and vehicle repairs up to their policy limit once they pay their deductible. However, if the victim’s expenses exceed the policyholder’s coverage limit, they’re on the hook for the remainder, plus all their own expenses.

Since South Carolina is a tort state, drivers can sue each other for accidents. At-fault drivers with minimum coverage policies leave themselves vulnerable to lawsuits if their coverage limits don’t cover the total of a victim’s medical or vehicle expenses after an accident. In many accident scenarios, it’s much safer to have a full coverage policy with coverages that protect the policyholder directly, like a first-party medical benefit like medical payments coverage (MedPay) since personal injury protection (PIP) isn’t offered in the state, collision coverage, and comprehensive coverage. 

South Carolina minimum car insurance requirements mandate that all drivers registered in the state have an active auto insurance policy. All policies must contain at least 25/50/25 liability and UM coverages. Failure to have an active and adequate car insurance policy under state law can result in hefty fees and fines, license or registration suspension, or even jail time. 

It’s crucial to maintain a policy you can afford. Still, it’s equally as important to have enough coverage to protect your savings in the event of a worst-case scenario accident. While a minimum coverage policy will protect you from the legal repercussions of driving uninsured, like needing to file for an SR-22, these policies don’t provide coverage for every scenario. 

To get the protection you need from your policy, you may consider getting a full coverage policy from one of the state’s top insurers. Many of the state’s top insurers, like State Farm, Geico, and Travelers, offer a broad range of coverages for competitively low base rates with various opportunities for stackable discounts to further reduce your premiums. You don’t necessarily have to sacrifice coverage to get the best deal on your policy.

According to the South Carolina auto insurance rules, car insurance is mandatory in the state. All drivers must have at least 25/50/25 liability and UM coverage on their policies. Those who get behind the wheel without an adequate car insurance policy may face penalties like fines, fees, license or registration suspension, or even jail time. 

While car insurance premiums can get expensive, there are plenty of ways to reduce the cost. Many insurers in the state offer base rates below the average premium cost. Plus, several insurers offer various discounts policyholders can stack onto their policies to help lower their premiums.

While it may require giving up your Wednesday morning coffee run, making room in your budget for your car insurance premium can save you from severe financial ruin in the future. It can be tempting to cash in on the short-term savings of forgoing a policy entirely, but investing in a policy and your safety is much more financially savvy.

Most insurance coverages in the Palmetto State follow the car, not the driver. Both liability coverage and UM coverage follow the car, so anyone who has permission to borrow your vehicle will be covered should they cause an accident or be involved in one with an uninsured driver. Collision and comprehensive coverages also follow the car; however, MedPay doesn’t. 

MedPay and other FPMBs typically follow the driver instead of the car. If someone has permission to borrow your car and they’re injured in an accident, they’ll need to rely on their own coverage to receive benefits for their medical expenses. However, a policyholder’s FPMB will typically extend to their passengers as long as the policyholder is driving.

The best way to find a South Carolina auto insurance policy that meets the minimum legal coverage requirements and all of your own standards is to get and compare quotes online. By getting and comparing quotes, drivers can tailor their policies to their specific needs, as policies are subjective to each insurer, driver, and family.

Lucky for you, we’re quoting experts here at Clovered. You can use our free quoting tool to view and compare your quotes from the state’s top insurers in just minutes. If you prefer to chat with someone about your quotes, you can contact one of our licensed agents at 833-255-4117 or agent@clovered.com.