3.1 South Carolina Auto Insurance Requirements
Key Takeaways
- South Carolina requires minimum liability coverage of 25/50/25 for all registered vehicles
- South Carolina is a tort (at-fault) state where the negligent driver is responsible for damages
- Uninsured Motorist (UM) coverage is mandatory unless rejected in writing
- South Carolina uses modified comparative fault (51% bar) - no recovery if 51% or more at fault
- The South Carolina Automobile Insurance Plan (SCAIP) provides coverage for high-risk drivers
South Carolina is a tort (at-fault) state with mandatory minimum coverage requirements enforced by the South Carolina Department of Motor Vehicles (DMV).
Minimum Liability Coverage: 25/50/25
| Coverage | Minimum Limit | Description |
|---|---|---|
| Bodily Injury - Per Person | $25,000 | Maximum for one person's injuries |
| Bodily Injury - Per Accident | $50,000 | Maximum for all injuries in one accident |
| Property Damage | $25,000 | Maximum for property damage per accident |
Required and Optional Coverages
Liability Insurance - Mandatory
All South Carolina drivers must carry liability insurance covering:
- Bodily injury to others
- Property damage to others' vehicles and property
- Legal defense costs
Uninsured Motorist (UM) Coverage - Mandatory
| UM Requirement | Details |
|---|---|
| Required | Yes, same limits as liability |
| Rejection | Must be rejected in writing on prescribed form |
| Stacking | Available for multiple vehicles |
| Coverage | Protects against uninsured/hit-and-run drivers |
Underinsured Motorist (UIM) Coverage - Optional
- Not mandatory in South Carolina
- Recommended for additional protection
- Covers gap when at-fault driver has insufficient coverage
- Same rejection form as UM if offered
Personal Injury Protection (PIP) - Not Required
South Carolina does not require PIP coverage:
- Available as optional coverage
- Pays medical expenses regardless of fault
- Not part of no-fault system
South Carolina Tort System
At-Fault State
South Carolina uses a traditional tort system:
- Fault Determination: The negligent driver is responsible
- Liability Claims: Injured party claims against at-fault driver's insurance
- Right to Sue: Injured parties may sue for full damages
Modified Comparative Fault (51% Bar)
South Carolina follows modified comparative negligence:
| Your Fault % | Recovery |
|---|---|
| 0% | 100% of damages |
| 25% | 75% of damages |
| 50% | 50% of damages |
| 51% or more | NO recovery |
Example:
- Total damages: $100,000
- Your fault: 30%
- Recovery: $70,000 ($100,000 - 30%)
Important: If you are 51% or more at fault, you cannot recover ANY damages from the other driver under South Carolina's modified comparative fault rule.
Proof of Insurance Requirements
What Drivers Must Carry
- Insurance identification card (paper or electronic)
- Valid insurance policy information
- Electronic proof accepted on smartphones
Insurance Verification
South Carolina uses electronic verification:
- Real-time insurance verification system
- Random audits of registered vehicle owners
- Insurers must report all policies to DMV
Penalties for No Insurance
| Violation | Penalty |
|---|---|
| First Offense | $100-$200 fine, license/registration suspension |
| Second Offense | $200-$400 fine, longer suspension |
| Third+ Offense | $400-$800 fine, up to 6 months jail |
| Reinstatement | $550 fee, proof of insurance (FR-44) |
SR-22/FR-44 Requirements
After certain violations, South Carolina may require:
- FR-44 filing for 3 years
- Proof of higher liability limits
- Continuous coverage verification
Exam Tip: South Carolina requires 25/50/25 liability limits. Unlike some states, South Carolina uses modified comparative fault with a 51% bar - if you're 51% or more at fault, you cannot recover damages from the other party.
What are South Carolina's minimum auto liability limits?
Under South Carolina's modified comparative fault rule, how much can an injured driver recover if they are 60% at fault for an accident?
What type of coverage is mandatory in South Carolina unless rejected in writing?
South Carolina Auto Requirements
South Carolina requires every registered vehicle to carry minimum liability coverage and tests these numbers directly:
| Coverage | South Carolina Minimum |
|---|---|
| Bodily injury per person | $25,000 |
| Bodily injury per accident | $50,000 |
| Property damage per accident | $25,000 |
| Uninsured Motorists (UM) | Mandatory unless rejected in writing (at the same limits) |
The minimum is written 25/50/25. South Carolina is a tort (at-fault) state - not a no-fault/PIP state - so the negligent driver is responsible for the other party's damages, and the injured party recovers from the at-fault driver's liability coverage. Uninsured Motorists coverage is mandatory and can be rejected only in writing.
Comparative Fault and Financial Responsibility
South Carolina applies modified comparative negligence with a 51% bar: an injured party may recover damages reduced by their own percentage of fault, but recovers nothing if they are 51% or more at fault. A driver 30% at fault with $100,000 in damages recovers $70,000; a driver 51% at fault recovers nothing. This is the state-specific fault rule that overlays the national negligence concepts.
South Carolina enforces financial responsibility through proof of insurance at registration and penalties for lapses; an uninsured-motorist registration fee historically applied to those choosing to drive uninsured, but mandatory liability insurance is the baseline.
Because South Carolina is a tort state, there is no PIP/no-fault first-party medical system as in true no-fault states - injured parties pursue the at-fault driver, and their own UM/UIM coverage protects them when that driver is uninsured or underinsured. Underinsured Motorists (UIM) coverage must also be offered. The high-yield state facts are the 25/50/25 minimum, the mandatory UM rejectable only in writing, the tort (at-fault) status, and the 51% comparative-fault bar.
South Carolina applies modified comparative negligence with a 51% bar. A driver found 55% at fault for an accident with $40,000 in damages recovers how much?
Putting the South Carolina Auto Rules Together
A complete South Carolina personal-auto program starts with the mandatory 25/50/25 liability minimum and mandatory UM (rejectable only in writing), then adds the coverages a prudent driver layers on top: UIM (which must be offered), collision and comprehensive physical damage, and optional medical payments. Because South Carolina is a tort/at-fault state with no PIP/no-fault system, an injured driver looks first to the at-fault party's liability coverage and falls back on their own UM/UIM when that driver is uninsured or underinsured.
The 51% modified comparative-fault bar shapes every claim: an adjuster allocates fault percentages, reduces the recovery accordingly, and denies recovery entirely to a party 51% or more at fault. A driver 40% responsible for a $50,000 loss recovers $30,000; one 51% responsible recovers nothing. These four facts - the 25/50/25 minimum, mandatory rejectable-in-writing UM, tort status with no PIP, and the 51% comparative-fault bar - are the highest-yield South Carolina auto items, and they overlay the national PAP coverage mechanics (Parts A through F) rather than replacing them.