The Car Insurance Requirements in South Carolina: What Drivers Need to Know

By Brad Davis, CIC (August 3, 2025)
Davis Insurance Associates – Myrtle Beach, SC

Whether you're a lifelong resident or new to the Palmetto State, understanding the car insurance requirements in South Carolina is crucial if you own or operate a vehicle. South Carolina law mandates that all drivers carry certain minimum levels of coverage, but the details of what's required – and why it's important – can be confusing.

In this blog post, we'll break down the required auto insurance in South Carolina, explain who must carry it, and provide helpful tips for ensuring you're properly covered on the road.

---

Do You Have to Have Car Insurance in South Carolina?

Yes, South Carolina requires all drivers to carry auto insurance if they own a registered vehicle. Driving without insurance isn't just risky, it's illegal.

In fact, the state has strict penalties for uninsured drivers, including fines, license suspension, and even potential jail time. The goal of mandatory auto insurance laws is to ensure that if you cause an accident, you can cover the costs of damage or injuries to others.

Who Is Required to Carry Auto Insurance in SC?

Anyone who owns a vehicle registered in South Carolina and operates it on public roads must carry valid auto insurance. This includes:

• South Carolina residents with a personal vehicle

• New residents who register a vehicle in SC (within 45 days of establishing residency)

• Businesses with commercial vehicles registered in SC

• Teen drivers and college students with a car in their name

• Anyone driving with a South Carolina license plate and registration

If you don't want to carry insurance, SC law allows you to register as an uninsured motorist – but there's a catch: you must pay a $600 annual uninsured motorist fee, and you're personally responsible for any damage or injury you cause.

You can read more about the state's requirements for uninsured motorists and general auto insurance FAQs on the South Carolina Department of Insurance website.

---

What Are the Minimum Car Insurance Requirements in South Carolina?

South Carolina requires drivers to carry liability insurance and uninsured motorist (UM) coverage. Here's a breakdown of the minimum required limits:

1. Liability Insurance

This covers damage or injuries you cause to others in an at-fault accident.

• $25,000 bodily injury per person

• $50,000 bodily injury per accident

• $25,000 property damage per accident

This is often written as 25/50/25 coverage.

2. Uninsured Motorist Coverage (UM)

South Carolina also requires drivers to carry UM coverage, which protects you if you're hit by a driver who doesn't have insurance.

• Minimum UM limits must match your liability limits: 25/50/25

Note: Uninsured Motorist coverage is required, but Underinsured Motorist (UIM) coverage is optional—though it's highly recommended.

---

Why These Minimums Might Not Be Enough

While minimum liability limits satisfy the legal requirement, they may not be enough in a serious accident. For example:

• A multi-vehicle accident with injuries can easily exceed $50,000 in medical costs.

• If you cause damage to a high-end vehicle or property, $25,000 might not cover the repair or replacement.

• If you're sued, you could be held personally responsible for any costs above your policy limits.

That's why many South Carolina drivers choose to increase their liability limits or add umbrella coverage for extra protection.

---

Optional Auto Insurance Coverages in South Carolina

While liability and UM coverage are required, there are other optional coverages you should consider:

✅ Comprehensive Coverage

Covers non-collision losses like theft, vandalism, fire, flood, or hitting an animal.

✅ Collision Coverage

Pays to repair or replace your vehicle if you're at fault in an accident.

✅ Underinsured Motorist (UIM) Coverage

Protects you if an at-fault driver has insurance, but not enough to cover your medical bills or damages.

✅ Medical Payments (MedPay)

Covers medical expenses for you and your passengers, regardless of fault.

✅ Roadside Assistance and Rental Car Reimbursement

Helpful add-ons that provide peace of mind and convenience if you ever need it.

---

What Happens If You Drive Without Insurance in South Carolina?

Driving uninsured in South Carolina can result in serious penalties:

• Fines up to $200 or more, plus daily fees until you provide proof of insurance

• License and registration suspension

• Reinstatement fees of $550 or more

• Possible jail time for repeat offenders

• Requirement to carry SR-22 insurance for 3 years

South Carolina has a system in place to electronically verify insurance coverage, so it's very likely that uninsured drivers will be caught.

You can view the official insurance requirements and penalties for uninsured drivers directly on the South Carolina DMV's website.

---

How to Provide Proof of Insurance in SC

After getting insured, you should receive an insurance card from your carrier, which you must carry in your vehicle at all times.

The SC DMV also tracks insurance electronically, so when you register a car or renew your license plate, your insurer must confirm your policy is active.

---

How to Shop for Auto Insurance in South Carolina

If you're shopping for auto insurance in South Carolina, here are a few tips:

• Compare quotes from multiple insurers – prices vary, even with the same coverage.

• Look for bundling discounts if you combine home and auto insurance.

• Ask about discounts for safe drivers, good students, and defensive driving courses.

• Work with a local independent agent (like us!) who can explain your options and find a policy that fits your needs and budget.

---

Final Thoughts: Stay Legal and Protected

Auto insurance in South Carolina is more than a legal requirement – it's a critical part of protecting yourself, your assets, and others on the road.

By carrying at least the state minimum coverage, you'll avoid fines and penalties. But by understanding your options and choosing the right coverage, you can ensure peace of mind and financial protection if the unexpected happens.

---

🚗 Need Help with Your SC Auto Insurance?

If you're shopping for car insurance in Myrtle Beach, Socastee, Conway, or anywhere in South Carolina, Davis Insurance Associates is here to help.

We'll review your current policy, explain your options, and help you get competitive quotes from top-rated insurance companies.

👉 Let's check auto insurance off your list today.
Start an auto insurance HERE.