Like most states, South Carolina requires a minimum level of motor vehicle insurance. For drivers in the Palmetto State, those minimums have been the same for nearly 20 years:
- $25,000 in bodily injury coverage per incident for a single injury victim
- $50,000 in aggregate bodily injury coverage per incident for more than one victim
- $25,000 in property damage
Drivers must also carry uninsured motorist coverage in an amount equal to the liability limit minimums. Underinsured motorist coverage isn’t mandatory, but insurance carriers are required to offer it to you.
Why Might Auto Insurance Coverage Requirements Change?
It’s not surprising that the legislature is entertaining the possibility of increasing minimum auto insurance coverage requirements. Those minimums were last increased in 2007. During that time, medical costs have increased significantly, and so has the cost of a motor vehicle. For example, between 2015 and 2024, the cost of hospital services increased by 43%. In other words, the existing limits cover less medical care than they did when they were last updated, and are insufficient to cover totaling of or severe damage to most recent-model vehicles.
Earlier this year, the South Carolina Daily Gazette reported that the percentage of auto insurance claims filed under uninsured motorist policies had increased significantly between 2017 and 2023–from 12.8% of all car accident claims to 21.5%. That’s a bit higher than the national rate, though many states have the same coverage limits as South Carolina.
Effective July 1, 2025, neighboring North Carolina has increased its coverage minimums to $50,000 in bodily injury for a single victim, $100,000 aggregate for two or more victims, and $50,000 in property damage.
South Carolina Legislators are Considering Increases to Minimum Coverage Requirements
In the 2025 legislative session, two competing bills have been introduced to increase liability coverage requirements.
H3267 was referred to the House Committee on Labor, Commerce & Industry on January 14, 2025 and remains in committee. If this bill became law, the basic requirements listed above would remain the same. However, a minimum would be added, requiring coverage of at least $150,000 per person suffering bodily injury resulting in death.
H4143 was referred to the same committee on March 5, 2025, and also remains there. Under this bill, the coverage minimums for bodily injury for a single person and for property damage would each increase to $30,000. The $50,000 aggregate for bodily injury to two or more people would remain the same.
A Third Bill Would Increase Insurance Requirements for Certain High-Risk Drivers
H4301, referred to the House Committee on Labor, Commerce & Industry on April 10, 2025, would significantly increase minimum coverage requirements for drivers who had been convicted of driving under the influence under either §56-5-2930 or §56-5-2933. Those drivers would be required to carry a minimum of $250,000 in bodily injury coverage for a single person and $500,000 for two or more injury victims. The minimum property damage coverage would be $200,000. The driver would be required to carry this increased coverage for one year, and the insurance carrier would be required to file proof of insurance with the Department of Motor Vehicles.
How Would the Proposed Changes Impact Charleston Residents?
If minimum coverages are increased, South Carolina drivers who have chosen the minimum amount of coverage required can almost certainly expect to see their premiums increase. The proposed changes are relatively modest and may not trigger a significant increase in costs. If the high-risk provision passes, costs would likely increase significantly for drivers who are already considered high risk and would need several times the current level of coverage.
On the other hand, the increased coverage would increase available funds to compensate those who are injured and/or have significant vehicle damage due to a motor vehicle accident. That’s important, since the average bodily injury liability in a motor vehicle accident case is more than $25,000.
What’s Next for Charleston Auto Insurance Requirements?
The legislature may pass one of the proposed increases, or may reach a compromise and pass an amended bill raising requirements. They may also vote down both bills, or it’s possible that neither will make it out of committee. The same is true for the DUI-related increase. We’ll keep you updated on the progress of all three bills in the coming legislative session.
If you or a loved one are involved in a car accident and have questions about insurance coverage or compensation, contact injury attorney Frank Hartman to discuss your case.