South Carolina Drivers Face Potential Doubling of Auto Insurance Minimums
COLUMBIA, SC – March 27, 2025 – South Carolina drivers who seek to minimize their auto insurance expenses may soon face a significant change. The state Senate has passed a legislative proposal that could double the minimum required car insurance coverage, a move aimed at better protecting motorists during accidents.
The necessity for this change stems from the fact that the current minimum insurance levels, which have remained unchanged since 2007, are no longer deemed sufficient to cover the costs associated with serious auto accidents. The existing parameters include coverage for property damage and injuries, with limits set at $25,000 for property damage, $25,000 for medical expenses per individual, and a total of $50,000 for all injuries regardless of the number of people involved in the accident.
During the Senate debate, Sen. Ronnie Cromer, a Republican from Newberry County and the bill’s proponent, articulated the urgency for higher coverage limits. Cromer referenced a personal anecdote involving a driver with minimum coverage who caused significant damage to a friend’s vehicle. “You’re not going to fix a Corvette rear end for $25,000,” he stated, emphasizing the inadequate coverage.
The proposed legislation would increase the liability minimums to $50,000 for property damage and $100,000 for medical expenses. However, this increase will not take effect immediately; the new minimums are set to commence two years after the bill’s enactment. This timeline is intended to give insurance companies adequate preparation and allow current policyholders time to adjust their coverage levels.
State officials have not disclosed how many drivers currently hold insurance policies at the minimum levels, as the South Carolina Department of Insurance does not maintain these records. Nevertheless, Senate Majority Leader Shane Massey pointed out that those who buy only the minimum coverage will be compelled to raise their insurance limits. “There’s protection for them as well by making this change,” he noted, emphasizing that higher required coverage could lead to better protections for all drivers.
The proposal garners bipartisan support amid ongoing discussions about broader reforms to personal injury lawsuit regulations and insurance practices. Sen. Margie Bright Matthews, a Democrat from Walterboro who supported the coverage increase, expressed that the need for heightened insurance minimums has long been overdue.
The proposed change aligns South Carolina’s minimum coverage requirements with those of neighboring North Carolina, where the coverage limits are set to increase on July 1. Georgia, a nearby state, currently maintains the same minimum requirements as South Carolina.
The need for increased coverage comes in light of a rising trend in claims associated with underinsured motorists. Data from the Insurance Research Council reveals that the proportion of auto wreck claims in South Carolina paid through underinsured coverage jumped from 12.8% in 2018 to 21.5% by the end of 2023, exceeding the national average. The reasons for this increase include rising repair costs and the prevalence of advertisements promoting minimal coverage options.
Insurance agent Chris Oxford from North Charleston stated that he has a policy not to write auto insurance at the current minimum coverage levels, asserting that payouts are often insufficient even for minor accidents. He expressed concern that consumers would be better served by understanding the actual costs associated with vehicle repairs and possibly higher expenses resulting from accidents.
In conclusion, the legislative push to double the auto insurance minimums in South Carolina aims to better equip motorists against the financial repercussions of vehicular accidents. With a two-year implementation timeline, drivers are advised to review their current insurance policies and consider adjusting their coverage to ensure adequate protection in the event of a collision.
