South Carolina Auto Insurance Law: What You Should Know About Underinsured Motorist Coverage

South Carolina's auto insurance laws are essential for drivers to understand, particularly concerning underinsured motorist coverage (UIM). This type of insurance plays a critical role in protecting you financially in case of an accident caused by a driver whose insurance isn't sufficient to cover the damages.

Under South Carolina law, all drivers are required to carry a minimum amount of auto insurance. This minimum includes liability coverage, which covers damages to others in an accident you cause. However, these minimum limits can be inadequate, especially in severe accidents, making UIM coverage a vital consideration for all drivers.

Underinsured motorist coverage is designed to protect you when you are involved in an accident with a driver who does not carry enough insurance to pay for your injuries or damages. In South Carolina, drivers have the option to add UIM coverage to their auto insurance policies, and in many cases, it's a wise investment.

In South Carolina, the law mandates that if you choose to have UIM coverage, it must equal your liability limits. This means if you have $25,000 in liability coverage, you must also carry at least $25,000 in underinsured motorist coverage. It’s crucial to note that this coverage only comes into play when the at-fault driver’s liability coverage is insufficient to cover your damages.

For example, if you sustain $50,000 in injuries from an accident and the at-fault driver only carries $25,000 in liability insurance, your UIM coverage could help pay the remaining $25,000, provided you have at least that much coverage.

Additional aspects to consider include the difference between uninsured and underinsured motorist coverage. While uninsured motorist coverage protects you in cases where the at-fault driver doesn’t have any insurance at all, underinsured motorist coverage provides protection when the at-fault driver has insurance but not enough to fully cover your costs.

When selecting your auto insurance policy, it’s advisable to evaluate your financial situation and the level of risk you’re willing to accept. Higher limits on both liability and underinsured motorist coverage can provide greater security and peace of mind.

Moreover, South Carolina has a "comparative negligence" rule, which means that the amount you can recover may be impacted by your degree of fault in the accident. For instance, if you are determined to be 20% at fault, your recovery amount may be reduced by that percentage.

In conclusion, understanding South Carolina auto insurance laws and the importance of underinsured motorist coverage can significantly affect your financial security after an accident. Be sure to discuss your options with an insurance agent to ensure you have the appropriate coverage to protect yourself on the road.