The state follows the tort liability law. This means that all motorists must carry proof of financial responsibility at all times while operating a motor vehicle. As of January 1, 2007 the limits of liability are as follows; $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $25,000 for property damage. Drivers should be aware that this type of policy only covers the damages and injuries of other parties if the policyholder is found liable. This will not compensate the insured for any injury or damage that they may sustain as a result and that they are found responsible for.

However, this is one of the few states that allow eligible drivers to operate uninsured. If eligible, South Carolina auto insurance laws allow that these drivers pay an annual fee of $550 to the Department of Public Safety. This choice may be unwise because if the uninsured driver is the cause of an accident they will be responsible for damages and injuries that they cause to others parties as well as any passengers riding in their vehicle.

Shopping for South Carolina Car Insurance

The state has lifted their law that only companies within the SC are eligible to write policies. This can be very beneficial to consumers since it allows many insurers to enter the market which in turn makes for more competitive pricing as well as more carriers to choose from. According to the state’s auto insurance facts and tips guide, it suggests that consumers shop around and compare before obtaining coverage. The main reason for this is that each company can charge each applicant differently and with the amount of competition out there, a carrier may be able to offer a much lower rate than others. However, one should take their time and know what type of coverage that they may need before deciding on what to purchase. Therefore, one should get as many quotes as possible and comparison shop before purchasing.

In the past, insurers were not allowed to decline to insure any individual due to risk. This is no longer the case. An insurer may refuse to issue policies as long as it is not a result of an analysis of income level, race, national origin, ancestry, marital status, or lawful occupation, including military. If an individual is unable to obtain a policy from a private insurer they may be able to seek the help of the South Carolina Automobile Insurers Plan (SCAAIP) for help getting insured. However, these rates may be higher than those on the regular market. If insured by this type of policy try to maintain a good driving record in order to become eligible for to obtain policies from private providers and cheaper rates.