Uninsured and Underinsured Motorist Coverage in South Carolina: How It Works When the At-Fault Driver Can't Pay
South Carolina requires all auto policies to include UM/UIM coverage. When the at-fault driver has no insurance or not enough, this coverage becomes the injured person's primary safety net — and insurers fight claims under it just as hard as any other.
Every year, South Carolina drivers are seriously injured by motorists who carry no insurance or who carry only the state minimum — which is often inadequate to cover the true cost of a serious injury. Uninsured motorist (UM) and underinsured motorist (UIM) coverage exists precisely for this scenario, and South Carolina law requires it to be included in every auto policy issued in the state.
The Legal Framework: UM/UIM in South Carolina
South Carolina Code § 38-77-150 mandates UM coverage in every motor vehicle liability policy. Unless the policyholder affirmatively rejects UM coverage in writing, it is included by default at the same limits as the liability coverage. South Carolina's UM statute is among the more plaintiff-friendly in the Southeast, and cases like State Farm Mut. Auto. Ins. Co. v. Calcutt have clarified the scope of coverage available when the at-fault driver is uninsured or underinsured.
The key distinction between UM and UIM coverage:
- UM (uninsured motorist): Applies when the at-fault driver has no auto insurance at all, or when the at-fault driver flees the scene and cannot be identified (hit and run), subject to the physical contact requirement in most policies.
- UIM (underinsured motorist): Applies when the at-fault driver has insurance, but their policy limits are insufficient to cover the full value of the injured person's claim. The UIM coverage steps in to cover the gap, up to the injured person's own UIM policy limits.
Stacking: A South Carolina Advantage
South Carolina permits "stacking" of UM/UIM coverage in certain circumstances — meaning that if an insured has multiple vehicles on one policy, or multiple policies, the coverage limits from each may be combined. Stacking can dramatically increase the available coverage in a serious injury case. The rules governing when stacking is permitted are technical and policy-specific; an attorney familiar with South Carolina UM law can analyze whether stacking applies to a particular policy configuration.
Your Own Insurer as the Adversary
One of the most counterintuitive aspects of UM/UIM litigation is that your own insurance company — the one you have paid premiums to for years — becomes the opposing party. Insurers defend UM/UIM claims with the same tools they use against third-party claims: they dispute liability, challenge injury causation, contest damages, and offer settlements that undervalue the claim. The fact that the insurer owes a contractual duty to its own policyholder does not mean it will pay fairly without advocacy.
South Carolina's bad faith law applies to UM/UIM claims. If an insurer unreasonably delays or denies a valid UM/UIM claim, the policyholder may have a separate bad faith cause of action — including the right to recover consequential damages and attorney's fees beyond the policy limits.
Practical Steps After an Accident with an Uninsured Driver
File a police report immediately — it is required for most UM claims. Notify your own insurer of the UM claim promptly. Do not give a recorded statement to your own insurer without first consulting an attorney; despite the contractual relationship, recorded statements can be used against you in UM litigation just as in third-party claims.
How Traywick Law Helps
Our office handles UM/UIM claims throughout the Charleston area, including disputes over stacking, bad faith denials, and undervalued settlements. Learn more about our auto accident practice, or visit the Traywick Legal Blog for more case analysis.
Talk to a Charleston Attorney
If you have questions about how this issue affects your situation in Charleston, Mount Pleasant, or anywhere in the Lowcountry, contact Traywick Law Offices for a free consultation. Call (843) 343-5092.
Disclaimer: This article is provided for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Every case is different — please consult an attorney about your specific situation.
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