How Much Car Insurance Do I Need?

By Brad Davis, CIC (August 27, 2025)

Car insurance is one of those things you hope you never have to use – but when you do, it can make all the difference between a minor inconvenience and a financial nightmare.

Here in South Carolina (and North Carolina), the question many drivers ask is: "How much car insurance do I really need?" Is the state minimum enough? Or should you carry more protection for peace of mind?

Let's break it down in plain language so you can make smart, informed choices about your coverage.

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What "Enough Coverage" Really Means

South Carolina and North Carolina both require you to carry minimum liability limits to legally drive. These limits are meant to cover injuries or damages you cause to others.

But here's the thing: the state minimum is just that – the minimum. It's not a recommendation, it's the floor. If your accident costs go beyond that, the rest could come out of your pocket.

When we ask, "Do I have enough coverage?" what we really mean is:

• Could my policy protect me if I cause a serious accident?

• Would it cover medical bills, lost wages, or property damage beyond just the basics?

• Would I still be financially secure afterward?

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South Carolina & North Carolina Minimum Requirements

• South Carolina minimum liability limits:

  • $25,000 per person for bodily injury

  • $50,000 per accident for bodily injury

  • $25,000 for property damage

• North Carolina minimum liability limits:

  • $30,000 per person for bodily injury

  • $60,000 per accident for bodily injury

  • $25,000 for property damage

That might sound like a lot, but consider this: medical costs for one serious accident can easily exceed $100,000. If your coverage stops at $25,000 or $30,000 per person, you could be responsible for the rest.

Info from the South Carolina Department of Insurance: Auto Insurance Basics

Info from the North Carolina Department of Insurance: Basic and Miscellaneous Auto Coverages

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Recommended Coverage Levels

At Davis Insurance Associates, we usually recommend carrying higher liability limits than the state minimums. For most drivers in SC and NC, that often means:

• $100,000 / $300,000 / $100,000 (per person / per accident / property damage) at a minimum

• Many families and homeowners choose $250,000 / $500,000 / $100,000 or higher

Why? Because lawsuits, medical bills, and vehicle costs can quickly add up. The higher your limits, the better your protection if the unexpected happens.

*Some clients need more coverage than what a typical Auto Insurance Policy can provide – here is where an Umbrella Policy comes in. This blog is not about Umbrella Policies, but it's definitely important enought to mention and for you to look into. You can read more about Umbrella Policies on our website or previous Blog Posts.

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Don't Forget About Uninsured & Underinsured Motorist Coverage

Here's a scary fact: South Carolina consistently ranks among the states with the highest percentage of uninsured drivers. And even if someone has insurance, they may only carry the bare minimum.

That's why Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are so important. These coverages protect you when the other driver doesn't have enough (or any) insurance.

Bottom line: Don't rely on someone else's policy to protect you. Make sure your own auto insurance is built to cover the gaps.

*Some Umbrella Insurance Policies can provide additional coverage for UM and UIM. 

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How to Decide What's Right for You

So how much car insurance do you need? The answer depends on:

• Your assets (home, savings, income – what you could lose in a lawsuit)

• Your driving habits (long commutes, family carpool, teen drivers, etc.)

• Your budget (higher coverage often costs less than you think)

At Davis Insurance Associates, we recommend purchasing as much coverage as you can reasonably afford. In most cases, the extra premium for significantly more protection is surprisingly small compared to the financial risk of being underinsured.

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The Bottom Line

If you're asking "Do I have enough car insurance?"—chances are you don't. The state minimums in South Carolina and North Carolina rarely provide adequate protection in today's world of high medical and repair costs.

By carrying higher liability limits and adding Uninsured and Underinsured Motorist coverage, you're protecting yourself, your family, and your financial future.

At Davis Insurance Associates, we help drivers across Myrtle Beach, the South Carolina Upstate, and throughout NC and SC find the right balance of coverage and cost.

Because at the end of the day, it's not about meeting the minimum – it's about making sure you're truly protected when life happens.

Want to read what the Insurance Information Institute says about this topic?

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❓ Frequently Asked Questions About Car Insurance Coverage

1. What is the minimum car insurance required in South Carolina?

In South Carolina, drivers must carry at least $25,000 per person / $50,000 per accident for bodily injury liability, and $25,000 for property damage liability. Drivers are also required to carry uninsured motorist coverage in the same amounts. While these limits meet legal requirements, they often aren't enough to cover the full costs of a serious accident.

2. What is the minimum car insurance required in North Carolina?

North Carolina requires slightly higher minimums than South Carolina: $30,000 per person / $60,000 per accident for bodily injury liability, and $25,000 for property damage liability. You must also carry uninsured motorist coverage. Just like in South Carolina, these amounts are only the minimum and may leave you exposed financially if you cause a major accident.

3. How much car insurance coverage do I really need?

The right amount of coverage depends on your assets, lifestyle, and budget. At Davis Insurance Associates, we generally recommend at least $100,000 / $300,000 / $100,000 liability limits, with many families opting for $250,000 / $500,000 / $100,000 or higher. We also stress the importance of Uninsured and Underinsured Motorist coverage, since many drivers in SC and NC carry only the bare minimum – or none at all. Carrying higher limits protects you and your family, not just the other driver.

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✅ Ready to review your auto insurance coverage?
Contact us at Davis Insurance Associates and let's make sure you have enough protection for what matters most.