Driving in South Carolina is a necessity for many, but it also comes with risks. While the law requires all drivers to carry liability insurance, not everyone complies. According to recent studies, many drivers either lack insurance or carry only the minimum required coverage, which may not be enough to fully cover damages in an accident. This is where uninsured motorist (UM) coverage plays a critical role in protecting drivers and passengers.
What Is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage is a type of auto insurance that provides financial protection if you’re involved in an accident with a driver who doesn’t have liability insurance. It can also cover hit-and-run incidents where the at-fault driver flees the scene and cannot be identified.
In South Carolina, state law requires all insurance policies to include uninsured motorist coverage with limits equal to the minimum liability limits. This mandatory coverage ensures that drivers have at least some financial protection if they are involved in an accident with an uninsured motorist.
Why Is Uninsured Motorist Coverage Important in South Carolina?
1. High Rates of Uninsured Drivers
South Carolina consistently ranks among states with high rates of uninsured drivers. If you’re involved in an accident with one of these drivers, you could be left paying for damages and medical expenses out of pocket unless you have UM coverage.
2. Protection Against Hit-and-Run Accidents
Hit-and-run accidents can leave victims with injuries and property damage without an at-fault party to hold accountable. UM coverage steps in to provide financial relief when the responsible driver cannot be identified.
3. Financial Security for Medical and Repair Costs
Accidents can result in substantial medical bills, lost wages, and vehicle repair costs. UM coverage helps cover these expenses, ensuring that you and your passengers are not left financially vulnerable.
4. Peace of Mind on the Road
Knowing that you have UM coverage gives you peace of mind, allowing you to focus on recovery after an accident without worrying about how to cover the associated costs.
Benefits of Uninsured Motorist Coverage
Uninsured motorist coverage offers several key benefits that make it an essential part of any driver’s insurance policy:
1. Coverage for Medical Expenses
UM coverage helps pay for medical bills if you or your passengers are injured in an accident caused by an uninsured driver. This includes emergency care, hospital stays, surgeries, and rehabilitation.
2. Compensation for Lost Wages
If injuries from an accident prevent you from working, UM coverage can compensate for lost wages, helping you stay financially stable during recovery.
3. Protection for Property Damage
Some UM policies include coverage for damage to your vehicle or other property, saving you from costly out-of-pocket repair bills.
4. Coverage for Pain and Suffering
In addition to economic damages, UM coverage may compensate for non-economic losses, such as pain and suffering, resulting from the accident.
5. Affordable Addition to Your Policy
Uninsured motorist coverage is typically more affordable than other types of insurance, making it a cost-effective way to enhance your financial protection on the road.
How Uninsured Motorist Coverage Works in South Carolina
When you are involved in an accident with an uninsured driver, you can file a claim under your UM coverage. The process typically involves:
Reporting the Accident
Notify your insurance company as soon as possible after the accident. Provide detailed information about the incident, including police reports and witness statements, if available.
Evaluating Damages
Your insurance company will assess the damages to your vehicle and any injuries sustained. This evaluation determines the compensation you’re eligible to receive under your policy.
Claim Settlement
Once the claim is processed, your insurance company will provide payment for covered expenses, up to the limits of your policy.
Minimum Insurance Requirements in South Carolina
South Carolina requires all drivers to carry the following minimum liability insurance:
$25,000 for bodily injury per person
$50,000 for bodily injury per accident
$25,000 for property damage
Uninsured motorist coverage must also match these minimum limits. While these limits provide basic protection, many accidents result in damages exceeding these amounts. Increasing your UM coverage limits can provide additional peace of mind and financial security.
Why Minimum Coverage May Not Be Enough
Although South Carolina mandates minimum uninsured motorist coverage, the required limits may fall short in serious accidents. Consider the following example:
A serious accident results in $100,000 in medical bills for you and your passengers.
The uninsured motorist coverage required by law only covers $50,000 per accident.
In this scenario, you would still be responsible for the remaining $50,000 unless you had opted for higher coverage limits.
Uninsured vs. Underinsured Motorist Coverage
While uninsured motorist coverage protects you when the at-fault driver has no insurance, underinsured motorist (UIM) coverage comes into play when the at-fault driver has insurance but their policy limits are insufficient to cover your damages.
For example:
The at-fault driver has $25,000 in liability coverage, but your medical bills total $50,000.
UIM coverage can bridge the gap and cover the remaining $25,000.
Both UM and UIM coverage are essential for comprehensive financial protection on the road.
How to Choose the Right Uninsured Motorist Coverage
Selecting the right UM coverage involves evaluating your personal circumstances and financial needs. Consider the following tips:
Assess Your Risk
If you frequently drive in areas with high rates of uninsured drivers or on busy highways, higher UM coverage limits may be a wise investment.
Factor in Your Vehicle Value
Drivers of newer or higher-value vehicles may want additional coverage to protect against significant repair costs.
Evaluate Your Finances
Think about the financial impact of an accident. Higher UM coverage limits can protect you from unexpected expenses that might strain your budget.
Protecting Yourself with Uninsured Motorist Coverage
Driving without proper financial protection is a risk no one should take, especially in a state like South Carolina, where uninsured drivers are a common concern. Uninsured motorist coverage provides critical protection for medical expenses, lost wages, property damage, and more, ensuring you’re not left vulnerable after an accident.
For South Carolina drivers, understanding the benefits and necessity of uninsured motorist coverage is essential to staying protected on the road. To ensure you have the right coverage for your needs, consult with an experienced attorney or insurance professional. The attorneys at Pierce, Sloan, Kennedy & Early LLC can provide guidance on handling claims and protecting your rights after an accident.
Contact us today at (843) 968-0886 to schedule a consultation and learn how we can help.