Understanding No-fault Insurance—What It Means for Drivers in South Carolina

When it comes to car insurance, understanding the difference between no-fault and at-fault systems is crucial. While many states in the U.S. operate under a no-fault insurance system, South Carolina is not one of them. Instead, South Carolina follows an at-fault system, which has significant implications for drivers in the state.

What Is No-Fault Insurance?

No-fault insurance is designed to simplify the process of getting compensation after a car accident. In states with no-fault insurance, each driver’s insurance company pays for their own policyholder’s medical expenses and other losses, depending on state laws, regardless of who caused the accident. This system aims to reduce the time and costs of resolving car accident claims by minimizing the need for litigation.

South Carolina’s At-fault System

In an at-fault system, the driver found to be responsible for causing an accident is liable for the damage. In practical terms, this involves the at-fault driver’s insurance company covering the costs of injuries and property damage suffered by the other party.

Determining who is responsible for an accident is a critical step. Insurance companies investigate the accident, review police reports and gather evidence to establish fault. Once fault is determined, the at-fault driver’s insurance typically covers the damages up to the policy limits.

Implications for Drivers

If you are involved in an accident and are found to be at fault, your auto liability insurance may help cover the other party’s damages up to these limits. If the damages exceed your coverage limits, you could be personally liable for the remaining costs.

Uninsured and Underinsured Motorist Coverage

South Carolina also requires drivers to carry uninsured motorist coverage, which may help provide financial protection if you are hit by a driver who does not have insurance. This coverage is equal to the minimum liability limits. Additionally, underinsured motorist coverage is available as an optional add-on. This coverage kicks in when the at-fault driver’s insurance is insufficient to cover your damages.

Contact Us

Contact GVL Insurance Company in Greenville, South Carolina, for an auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.