South Carolina Car Insurance Guide

South Carolina residents are required to be financially responsible when they operate a vehicle. The primary way of doing this is to purchase liability insurance. Good drivers can also opt to register as an uninsured motorist for $550 a year, but that doesn't give you any insurance, so that might not be a good option unless you have a lot of money. You must give out information about insurance when you get a driver's license or when you register a vehicle. Failure to be financially responsible can result in penalties.

Required Liability Insurance

South Carolina has a minimum amount of liability insurance that it requires. You must maintain $25,000 for every person in an accident for bodily injury coverage, up to a total of $50,000 per accident, and you need to have $25,000 of personal property insurance. Bodily injury coverage will help pay for medical expenses that arise as a result of an accident where you are at fault. Personal property insurance covers any vehicles, fences, or other property that you might damage while driving your vehicle. These are the minimum requirements. Because major accidents could cause more than this amount, you might want to consider increasing these amounts.

Optional Insurance Coverage

Although you are only required to purchase liability insurance, you (or your lender, if you have an auto loan) might want additional coverage. Some of the most common car insurance policies that you might want include comprehensive and collision insurance. Collision insurance protects your vehicle if you get into an accident while driving your car. Comprehensive insurance pays you in case your vehicle gets stolen, a tree falls on it, or it is damaged while you are not driving the vehicle. If you get these types of insurance and your car is totaled, your insurance company will only give you enough money to cover the value of your vehicle. Gap insurance is sometimes purchased by individuals to protect them while they owe more on their car than it is worth. Often, car dealers like to sell this insurance to you, but you can also purchase this coverage from other insurers.

Providing Proof of Insurance

South Carolina residents should always carry proof of insurance whenever they drive a vehicle. If you are pulled over by law enforcement, you will have to show it. You will also have to give your insurance information when you get or renew your driver's license, and during the car registration process. This doesn't mean that you have to own a vehicle to get a driver's license. If you don't own a vehicle, there is a place where you can indicate that on your driver's license application.

Penalties for not being Responsible

If you are not financially responsible and drive without insurance, you might face penalties. If you are stopped for a traffic violation without insurance, you could end up with fines and jail time. Your license can be suspended indefinitely if you don't provide proof of insurance within 30 days. If you get into an accident, you will have 15 days to have your insurance company send proof to the DMV that you are covered, otherwise you could have your driver's license and registration suspended. Cancelling your insurance could also result in the suspension of your driver's license and registration, unless you surrender your license plate or purchase liability with another insurance company. Insurance companies notify the DMV electronically when you cancel a policy.

Uninsured Motorist Registration

If you are a good driver, don't think that you'll get into an accident, and have the financial resources to self-insure in case you do get in an accident, you can register as an uninsured motorist. This costs $550 a year, and has other requirements. You have to have had a driver's license for three or more years, and you must not have an SR-22 requirement. If you meet those, plus 15 other requirements that involve not being convicted of certain types of traffic violations, you can drive without insurance.