Key Takeaways
- SCAIP is South Carolina's residual market for drivers who cannot obtain coverage in the standard market
- All auto insurers licensed in South Carolina share in SCAIP losses proportionally
- SCAIP provides the minimum required coverages at regulated rates
- Drivers with poor records, DUI convictions, or new drivers often use SCAIP
- Rates are typically higher than the standard market to reflect increased risk
Last updated: January 2026
South Carolina Automobile Insurance Plan (SCAIP)
Overview of SCAIP
The South Carolina Automobile Insurance Plan (SCAIP) is the state's assigned risk pool for auto insurance, providing coverage to drivers who cannot obtain insurance in the voluntary market.
SCAIP Structure
| Aspect | Description |
|---|---|
| Type | Assigned risk/residual market |
| Structure | Shared among all licensed auto insurers |
| Purpose | Insurer of last resort for auto insurance |
| Oversight | South Carolina Department of Insurance |
Eligibility Requirements
Who Qualifies for SCAIP
Drivers who cannot obtain coverage in the voluntary market:
- Valid License: Must hold valid South Carolina driver's license
- Registered Vehicle: Vehicle must be registered in South Carolina
- Market Rejection: Unable to obtain coverage from standard insurers
- Premium Payment: Ability to pay required premium
Common Reasons for SCAIP Placement
- Multiple traffic violations
- DUI/DWI convictions
- At-fault accidents on record
- Young or inexperienced drivers
- Lapses in prior insurance coverage
- Foreign license holders new to state
Coverage Provided
Standard SCAIP Coverages
| Coverage | Included | Limits |
|---|---|---|
| Bodily Injury Liability | Yes | 25/50 minimum |
| Property Damage Liability | Yes | $25,000 minimum |
| Uninsured Motorist (UM) | Yes | 25/50 minimum (unless rejected) |
| Collision | Optional | Actual cash value |
| Comprehensive | Optional | Actual cash value |
Coverage Limitations
- Higher deductibles may apply
- Limited to minimum required coverages initially
- Optional coverages may be restricted
- Surcharges for serious violations
Application Process
Steps to Obtain SCAIP Coverage
- Attempt Standard Market: Try to obtain coverage from voluntary insurers
- Agent Assistance: Work with licensed South Carolina agent
- Application Submission: Complete SCAIP application
- Assignment: Application assigned to participating insurer
- Premium Payment: Pay required premium
- Policy Issuance: Coverage begins upon payment
Agent Requirements
- Must be licensed in South Carolina
- Submits application to SCAIP on driver's behalf
- Cannot refuse to submit qualifying applications
- Earns commission on SCAIP policies
SCAIP Rates and Costs
Rating Factors
SCAIP rates are based on:
| Factor | Impact |
|---|---|
| Driving Record | Major factor - violations increase rates |
| Age and Experience | Younger drivers pay more |
| Vehicle Type | Sports cars, high-value vehicles cost more |
| Coverage Selected | Higher limits = higher premium |
| Location | County of residence affects rates |
Rate Structure
- SCAIP rates typically 50-100% higher than standard market
- Premium must be paid before coverage begins
- Semi-annual or quarterly payment options
- Rate reductions for improved driving record
Loss Sharing
How Losses Are Distributed
All auto insurers licensed in South Carolina share SCAIP results:
| Component | Description |
|---|---|
| Participation | Proportional to voluntary market share |
| Loss Distribution | Shared among all participating insurers |
| Assessment | May assess for deficit years |
Transitioning to Standard Market
Moving Out of SCAIP
Drivers can return to standard market by:
- Maintaining clean driving record for 3+ years
- Completing any required SR-22/FR-44 periods
- Maintaining continuous coverage
- Shopping for quotes from standard insurers
Exam Tip: SCAIP is South Carolina's assigned risk plan for drivers who cannot obtain auto insurance in the voluntary market. All auto insurers share in SCAIP losses proportionally based on their voluntary market share.
Test Your Knowledge
Who participates in sharing losses from the South Carolina Automobile Insurance Plan (SCAIP)?
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Test Your Knowledge
What type of market mechanism is SCAIP?
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