South Carolina Car Insurance Requirements: Minimums, Fault Rules & Penalties
South Carolina is one of a small number of states that gives drivers a formal alternative to carrying liability insurance: pay an annual fee to the DMV instead. While that option is legal, it provides zero financial protection if you cause a crash. Knowing the minimums, fault rules, and real penalty structure helps Palmetto State drivers make smarter decisions about coverage.
Minimum liability requirements
| Coverage type | Minimum required |
|---|---|
| Bodily injury per person | $25,000 |
| Bodily injury per accident | $50,000 |
| Property damage per accident | $25,000 |
| Uninsured motorist BI per person | $25,000 |
| Uninsured motorist BI per accident | $50,000 |
| Uninsured motorist property damage | $25,000 |
South Carolina mandates uninsured motorist coverage at the same 25/50/25 split as basic liability. UM coverage responds when an at-fault driver has no policy — a situation that occurs more often than most drivers expect. You may reject UM coverage in writing, but doing so eliminates an important layer of protection.
Proof of insurance must be carried in the vehicle and produced on request. The state accepts electronic proof on a mobile device.
Fault system
South Carolina is an at-fault state. When a collision occurs, the driver who caused it is financially responsible for the other party's injuries and property damage, typically through their liability policy.
The state uses modified comparative fault with a 51% bar. You can recover damages from another driver even if you share some responsibility for the accident — provided your share of fault is 51% or less. If you are found more than 50% at fault, you are barred from recovering anything. When fault is shared below that threshold, any award is reduced by your percentage. A driver found 20% at fault with $60,000 in losses would recover $48,000.
Thorough documentation at the scene — photos, witness information, and a police report — helps establish the other driver's share of fault in contested cases.
SR-22 requirements
An SR-22 is a financial responsibility certificate filed by your insurer directly with the SC DMV. It confirms that you carry at least the state minimum liability limits and is attached to your existing policy rather than being a separate product.
An SR-22 is required after:
- A DUI or DUAC (driving with unlawful alcohol concentration) conviction
- A reckless driving conviction
- An at-fault accident while driving without insurance
The filing obligation runs for three years from the date the requirement is imposed. If your policy cancels or lapses at any point during that period, your insurer must notify the SC DMV and your license will be suspended. Uninterrupted coverage is essential.
Penalties for driving without insurance
South Carolina permits an alternative to carrying insurance: pay the $550 uninsured motorist fee to the DMV annually. This fee grants legal permission to operate an uninsured vehicle but provides no actual coverage. If you cause an accident while uninsured, you bear full personal liability for all resulting damages.
First offense (failing to carry insurance or pay the fee):
- Pay the $550 uninsured motorist fee, or
- Driver's license and vehicle registration suspended
Second offense:
- $550 fee plus mandatory license suspension
Reinstatement requires proof of current insurance and payment of any applicable fees. Drivers who cause accidents without coverage also face civil liability for all damages — often far exceeding the $550 fee. Request a quote through AIS to find affordable coverage and get back into compliance quickly.