What Car Insurance You Must Have in South Carolina
South Carolina's mandatory insurance coverage
South Carolina requires you to carry liability insurance on any vehicle you register and drive on public roads. Liability coverage pays for damage or injuries you cause to someone else in an accident — it does not cover your own vehicle or medical bills. The state sets minimum amounts: $25,000 per person for bodily injury, $50,000 per accident for bodily injury to multiple people, and $25,000 for property damage.
You must show proof of this insurance when you register your vehicle with the South Carolina Department of Motor Vehicles (SCDMV) and carry proof in your vehicle at all times. If you are stopped by law enforcement and cannot produce a valid insurance card or policy document, you face a fine. If you cause an accident without insurance, you are personally liable for all damages, and the state can suspend your license and vehicle registration.
Liability is the only coverage the state legally requires. Other types of coverage — collision, comprehensive, uninsured motorist — are optional unless your lender or lessor demands them as a condition of the loan or lease.
Key Takeaways
- South Carolina requires a minimum of $25,000 per person and $50,000 per accident in bodily injury liability, plus $25,000 in property damage liability.
- You must show proof of insurance when you register your vehicle and carry proof with you whenever you drive.
- If you finance or lease a vehicle, your lender or lessor will likely require collision and comprehensive coverage in addition to liability.
- Driving without the required insurance can result in fines, license suspension, and vehicle registration suspension.
- You can meet the requirement through a standard auto insurance policy, a self-insurance certificate (if you own multiple vehicles), or a surety bond.
How to show proof of insurance to the SCDMV
When you register a vehicle or renew your registration, you must provide the SCDMV with proof that you carry the required liability coverage. You can do this by submitting an SR-22 form (if you have had a suspension or serious violation) or simply by providing your insurance company's declaration page or ID card showing your policy number, coverage amounts, and the vehicle identification number (VIN).
Your insurance company can send proof directly to the SCDMV on your behalf, or you can bring it yourself when you visit an SCDMV office or submit it by mail with your registration application. Many people now register online through the SCDMV website, and the system will prompt you to upload or reference your insurance information before you complete the transaction.
Keep a copy of your current insurance card in your vehicle at all times. If you are stopped by law enforcement, you must be able to produce this document immediately. An expired card or a card for a different vehicle will not satisfy the requirement.
What happens if your insurance lapses
If your insurance policy expires and you do not renew it before the expiration date, your coverage ends immediately. The SCDMV is notified electronically by your insurance company when a policy is cancelled or lapses, and your vehicle registration can be suspended without warning.
If you are caught driving with a lapsed policy, you face a fine of at least $100 for a first offense. A second offense within three years carries a fine of at least $200 and possible jail time. Your license and registration can both be suspended, and you may be required to file an SR-22 form for three years before you can reinstate your license.
If you know your policy is about to expire, renew it before the expiration date. If your policy has already lapsed, contact your insurance company immediately to reinstate it or purchase a new policy. Once you have active coverage, you can request that the SCDMV lift the suspension, though you may need to pay a reinstatement fee.
Insurance requirements if you have a loan or lease
If you are financing a vehicle through a bank, credit union, or dealership, the lender will require you to carry collision and comprehensive coverage in addition to the state-mandated liability. Collision covers damage to your vehicle from an accident; comprehensive covers damage from theft, weather, vandalism, and other non-collision events. The lender will specify the deductible amount (usually $500 or $1,000) and may require that they be named as a loss payee on the policy.
If you lease a vehicle, the leasing company will have similar requirements, often including uninsured motorist coverage as well. These requirements are part of your loan or lease agreement, not state law, but you must meet them or the lender can purchase insurance on your behalf and bill you for it — often at a much higher cost.
When you shop for insurance, tell the agent whether you are financing or leasing so they can include the required coverages in your quote. Once you have a policy in place, provide the lender with a copy of the declaration page showing that collision and comprehensive are included.
Other ways to meet the insurance requirement
You do not have to purchase a standard auto insurance policy. South Carolina allows you to meet the requirement through a self-insurance certificate if you own at least 25 vehicles and can demonstrate financial responsibility to the SCDMV. This option is available mainly to businesses and fleet operators, not individual drivers.
You can also obtain a surety bond from a bonding company, which acts as a may provide that you will pay for damages if you cause an accident. A surety bond typically costs less than an insurance policy but is harder to obtain and may require a deposit. It is most common among drivers who have been denied insurance by standard carriers.
For most individual drivers, a standard auto insurance policy is the simplest and most practical option. Compare quotes from multiple insurers to find a rate that fits your budget while meeting the state's minimum requirements.
What the minimum coverage actually protects
The state's minimum liability limits — $25,000 per person, $50,000 per accident, $25,000 property damage — cover only the other person's losses, not yours. If you cause an accident that injures someone, your liability coverage pays their medical bills, lost wages, and pain and suffering up to the limit. If you damage someone's car or property, it pays for repairs or replacement up to $25,000.
These minimums are often not enough. A serious injury can easily cost $100,000 or more in medical care and lost income. If your liability limits are exhausted, you are personally responsible for the remaining amount, and the injured person can sue you to collect. Many insurance agents recommend carrying higher limits — $100,000 per person and $300,000 per accident — for better protection.
The minimum coverage also does not pay for your own medical bills, vehicle repairs, or lost wages if you are injured in an accident caused by someone else. For that protection, you need uninsured motorist coverage (if the other driver has no insurance) or your own collision and comprehensive coverage.
How to register a vehicle without a current insurance policy
You cannot register a vehicle in South Carolina without proof of insurance. If you are buying a used car and do not yet have a policy in place, you must purchase one before you go to the SCDMV office or submit your registration application online.
Contact an insurance agent or use an online quote tool to get a policy started. Many insurers can issue a policy the same day, and you can often get a temporary ID card or declaration page by email within hours. Once you have that proof, you can complete your registration.
If you are buying a vehicle from a dealer, the dealer may allow you a brief grace period to obtain insurance before you take the car home, but this varies by dealer. Do not assume you can drive home uninsured — you are breaking the law if you do, and if you are in an accident, you have no coverage.
Frequently Asked Questions
Can I drive someone else's car if I don't have my own insurance?
It depends on the car owner's policy. Most standard auto insurance policies cover any driver with the owner's permission, as long as that driver has a valid license. However, some policies exclude household members or require them to be listed. Always ask the owner to check their policy before you drive their car.
What if I can't afford the state minimum insurance?
You must carry the minimum coverage to register and legally drive in South Carolina. If cost is a barrier, compare quotes from multiple insurers, ask about discounts (bundling, good driver, safety features), or consider a higher deductible to lower your premium. Some insurers also offer low-mileage discounts if you drive infrequently.
Do I need insurance if my car is parked and not being driven?
If your vehicle is registered with the SCDMV, you must carry liability insurance even if it is parked. You can suspend your registration if you are not driving the car, which will allow you to drop the insurance temporarily. Contact the SCDMV to request a suspension and reinstate it when you plan to drive again.
What is an SR-22 form and when do I need it?
An SR-22 is a certificate of financial responsibility that you file with the SCDMV if you have had a license suspension, serious traffic violation, or accident without insurance. Your insurance company files it on your behalf when you purchase a policy. You will need to maintain an SR-22 for the period required by the SCDMV, usually three years.
Can I use a motorcycle or ATV without insurance?
Motorcycles registered in South Carolina must carry the same liability insurance as cars. ATVs and off-road vehicles are not required to carry insurance if they are not registered for road use, but if you register an ATV for public road use, the same insurance requirement applies.