Car Insurance in South Carolina

In many cases, South Carolina residents must either purchase liability insurance or drive a vehicle already covered by liability insurance in order to prove financial responsibility and legally operate a vehicle in the state.

Ways to Establish Financial Responsibility

The only way to establish financial responsibility in this state is to purchase a liability insurance policy.

The state does allow some residents to register as uninsured motorists for a fee of $550 per year. Registering as an uninsured motorist means the state allows you to drive without insurance, but it doesn’t mean you’re covered in the event you need actual insurance.

South Carolina Liability Insurance Requirements for Private Passenger Vehicles

If you own a vehicle that requires license plates and is allowed on the roads, you must cover it with liability insurance or try to register as an uninsured motorist.

If you choose to purchase a liability insurance policy or you aren’t eligible to register as an uninsured motorist, your liability insurance must include:

• $25,000 per person for bodily injury coverage

• $50,000 per accident

• $25,000 for personal property

The state only requires liability insurance, but many folks opt to purchase additional types of coverage, either because they want to make sure they’re fully protected or their situations require additional insurance.

Proof of Insurance and Financial Responsibility

In addition to always carrying proof of insurance in case a law enforcement officer pulls you over, you must also provide insurance information when you apply for and renew your driver’s license and when you register your vehicle.

Drivers

You must indicate whether or not you have a liability insurance policy when you apply for your driver’s license for the first time and each time you renew your license (if you don’t own a vehicle or there’s no vehicle associated with your household, you can mark the appropriate response on the application).

Vehicle Owners

You must provide the name of your auto insurance carrier when you register your vehicle for the first time; the DMV will then electronically verify your auto insurance information.

Penalties for Failure to Maintain Financial Responsibility

If you fail to maintain liability insurance or register as an uninsured motorist, you could face an assortment of penalties.

Traffic Violations and Citations

If a law enforcement officer pulls you over and you’re unable to provide proof of insurance, he may issue you a citation and you could face fines and imprisonment. If you don’t provide proof of insurance within 30 days of the citation, the DMV could suspend your license indefinitely.

Once you’re able to reinstate your license, you could face fees from $100 to $550, depending on whether you owned the vehicle you were driving, as well as the requirement to file SR-22 insurance.

Accidents

If you’re involved in an accident, a law enforcement officer will issue you a Form FR-10, or “Notice of Requirement,” and within 15 days your insurance company must provide the DMV with proof you’re covered. If such proof doesn’t arrive, the DMV may suspend both your driver’s license and your registration.

Cancellations

If you cancel your liability insurance policy, your carrier will notify the DMV through the Automobile Insurance Liability Reporting System (ALIR). You must then either provide proof that you’ve purchased a policy with another carrier or surrender your vehicle’s license plate. If you don’t, the DMV could suspend your driver’s license and registration, as well as require you to pay a reinstatement fee of up to $400.

For more information about the state’s liability insurance requirements, how to provide proof that you’re covered, or how to reinstate your license or registration you can contact the DMV at (803) 896-5000.