South Carolina car insurance rates

South Carolina requires 25/50/25 liability coverage: $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage (S.C. Code 38-77-140). Uninsured motorist coverage at the same 25/50/25 limits is also mandatory (38-77-150). Underinsured motorist coverage must be offered but can be declined (38-77-160).

The Department of Insurance (SCDOI) describes South Carolina as a tort state, so the at-fault driver's liability policy pays the other party's injuries and damage. Since July 1, 2024, the state's old option to register a car uninsured by paying a fee no longer exists.

Mandatory coverage in Title 38, Chapter 77

The SCDOI notes two claim rules that sit outside Chapter 77. A car is treated as a total loss when damage reaches 75% of its actual cash value, under S.C. Code 56-19-480(G), and insurers cannot apply a deductible to safety glass repair or replacement under comprehensive coverage. See the UM/UIM coverage guide for what the optional underinsured layer adds above the mandatory UM coverage.

The uninsured motorist fee is gone

Section 56-10-510, which let an owner register a vehicle without insurance by paying a fee, was marked Reserved by 2023 Act No. 51, effective July 1, 2024. Section 38-77-150(C) still mentions that option, but it no longer has a working fee section behind it.

Section 56-10-520 now makes it a misdemeanor to own and operate an uninsured vehicle, or to let someone else operate one. A non-owner who drives a vehicle knowing it is uninsured is also covered. Penalties step up with each conviction within five years.

• First offense: a fine of $100 to $200, or 30 days in jail.
• Second offense: a $200 fine, 30 days, or both.
• Third or later offense: 45 days to six months in jail.

The owner's license, registrations and plates are suspended until a reinstatement fee is paid. The statute sets that fee at $600, adjusted each year by SCDOI order, so the current figure comes from the DMV or SCDOI rather than the statute text. A driver who is not the owner faces a 30-day license suspension.

Coverage lapses: plates, $5 a day, and a $200 fee

If a registered vehicle becomes uninsured, S.C. Code 56-10-240 requires the owner to insure it right away or surrender the plate and registration. When the DMV learns a policy was canceled, it suspends the owner's driving privileges, plate and registration. An owner who refuses to surrender them pays a $200 reinstatement fee, and an owner who surrenders them voluntarily before suspension pays none.

On top of that, 56-10-245 adds a per diem fine of $5 for each day of lapse, capped at $200 per vehicle for a first offense. Both the fine and the $200 fee are waived if a sworn statement shows the car was not driven during the lapse and the lapse came from military service or a physician-documented illness. The lapse guide covers what a gap can mean when you buy a new policy.

Proof of financial responsibility under Title 56, Chapter 9

When the DMV requires proof of financial responsibility, the filing commonly called an SR-22, 56-9-540 allows three forms: an insurer's certificate, a bond, or a deposit of cash or securities. Under 56-9-550 the insurer files the certificate with the DMV, on paper or electronically, for a policy written for at least six months. If the proof stops meeting the requirement, 56-9-610 has the DMV suspend the license and registration until new proof is filed.

Section 56-9-620 sets the exit: the DMV consents to cancel the proof three years after it was first required, if no conviction or bail forfeiture that would justify suspension was recorded during those three years. A person who surrendered license and registration to end the filing early must re-establish proof for the rest of the three years before being licensed again (56-9-630).

Associated Auto Insurers Plan

South Carolina's residual market is the Associated Auto Insurers Plan, named in 38-77-10 and set up under 38-77-810. It exists for drivers who are legally entitled to insurance but cannot get a liability policy in the regular market. Placement runs through certified producers who can bind coverage electronically.

Section 38-77-841 builds in a check before an application goes in. The producer must name one other agent or insurer representative who rejected the applicant. A producer who has at least one voluntary-market insurer must also submit the application there and have it rejected. And the form must state why the applicant needs the plan, with traffic violation and accident data. Under 38-77-845(B), the director may pass a plan application to insurers willing to write it in the voluntary market at a lower rate than the plan rate.

Claims and SCDOI complaints

The improper claim practices list in S.C. Code 38-59-20 does not set day counts. It names conduct instead, such as failing to acknowledge claim communications with reasonable promptness, or not trying in good faith to settle once liability is reasonably clear, when the conduct happens often enough to be a general business practice.

The SCDOI asks consumers to give the insurer a chance first and notes most issues resolve within 30 days. After that, its Office of Consumer Services takes complaints through the online complaint form, by email at consumers@doi.sc.gov, or by phone at 803-737-6180 or 1-800-768-3467. The department states that insurers have 7 days by statute to respond to it, and that it aims to resolve complaints within 7 to 10 days.

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