Auto Insurance Laws and Trends in S.C.

Being a tort insurance system state, South Carolina requires the driver who is responsible for an accident to pay for all damages and injuries. Because of this, all motorists are required to carry the following minimum limits of liability:

• Bodily injury: $25,000 per person and $50,000 per accident
• Property damage: $25,000 per accident

Motorists can also choose to add optional coverage such as collision, comprehensive, and under/uninsured motorist coverage.

Alternatives to auto insurance in South Carolina

South Carolina does allow motorists to drive without insurance if they choose to. They must apply for this privilege and pay $550 per year. However, only certain drivers can qualify for this. Every driver in the household must have held a valid driver's license for 3 or more consecutive years. They must also have never been charged with certain traffic violations, such as reckless driving, vehicle theft, DUI, or multiple accidents.

Fines and penalties for not maintaining S.C. auto insurance

If a motorist in South Carolina cannot provide proof of valid auto insurance or proof of the above waiver, they will be subject to fines of $100 to $550, as well as re-instatement fees of $400. They are then required to submit a SR-22 and keep it for 3 consecutive years.

An SR-22 is basically a high risk insurance policy that must be obtained if a motorist is convicted of driving without insurance, reckless driving, DUI, or other serious driving infractions. With an SR-22, auto insurance premiums are substantially higher than a regular insurance policy.

Laws and regulations in South Carolina

In South Carolina, consumers are protected when purchasing insurance by a number of laws and regulations. Some of these are as follows:

• An insurance company cannot refuse to sell an auto insurance policy based on discriminatory reasons (race, gender, age, beliefs, etc.)
• If you have had an insurance policy for 90 or more days, an insurance company can only cancel it because of non-payment or fraud and misrepresentation.
• An insurance company must notify a policy holder in writing that they are cancelling an auto insurance policy and explain the reasons why.

Request a free quote for South Carolina auto insurance today!