What Happens If the Person at Fault in an Accident Has No Insurance in South Carolina?

According to South Carolina Code § 38-77-140, motorists must carry auto insurance to cover bodily injury and property damage resulting from accidents. The state follows a fault-based (tort liability) system for auto accidents. This means the at-fault driver is legally responsible for the resulting injuries and damages. Even if the at-fault driver lacks insurance, they are still liable for the victim's losses, including bodily injuries and property damage.

A lawsuit to recover damages can be filed if the at-fault driver is uninsured and lacks assets. If a judgment is obtained, recovery can be pursued through wage garnishment or liens on property. Also, the victim or injured party can seek compensation through their uninsured motorist (UM) coverage. In South Carolina, UM is mandatory in auto insurance policies, and it is for situations like this, where the at-fault driver is uninsured. Driving without insurance is classified among South Carolina traffic violations and infractions, and it can lead to license suspension, fines, and further legal liability.

Is It Illegal To Drive Without Insurance In South Carolina?

Yes. Driving without insurance in South Carolina is illegal (S.C. Code § 56-10-520). State law (SC Code § 38-77-140) mandates drivers to carry liability and uninsured motorist coverage. Per § 56-10-225, drivers must always keep proof of insurance in their vehicle and display it upon request by law enforcement or other authorized officials. Failure to do so results in a misdemeanor charge, with penalties including:

• Fines up to $200 + $5 daily (max $200) for coverage lapses
• Jail time (30 days to six months)
• License and registration suspension
• $200 reinstatement fee + SR-22 filing (up to three years)
• Vehicle impoundment.

What Is the Minimum Insurance Requirement in South Carolina?

Under South Carolina Code § 38-77-140, the minimum required liability insurance includes:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $25,000 for property damage per accident

In addition, uninsured motorist (UM) coverage is mandated under SC Code § 38-77-150 at the same limit of 25/50/25 to protect drivers from uninsured or hit-and-run motorists. While not compulsory under the law for motorists to carry, insurers must offer underinsured motorist (UIM) and MedPay as optional coverages.

What To Do After A Car Accident With an Uninsured Driver in South Carolina

When a driver is uninsured, recovering damages can be difficult if they lack assets or income. Still, these are the steps to take:

• Step 1: Report the Accident: Per S.C. Code § 56-5-1260, any accident causing injury, death, or over $1,000 in damage must be reported to law enforcement. Following this, a police report will be generated, which helps establish fault and verify the at-fault driver's insurance status.
• Step 2: Submit Form FR-309: If law enforcement doesn't investigate the accident and it's $1,000+ in damage or injury/death, submit Form FR-309 (Traffic Collision Report) to the SCDMV within 15 days (S.C. Code § 56-5-1270). This preserves the accident record and supports insurance claims or legal action.
• Step 3: Consider a Civil Lawsuit: The at-fault driver is personally liable for damages; hence, the injured party or victim can seek compensation through a civil lawsuit. However, recovery depends on the driver's ability to pay.
• Step 4: Rely on Uninsured Motorist Coverage: The victim can rely on uninsured motorist (UM) coverage. UM provides up to $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage.
• Step 5: Report the Offender to the SCDMV: Driving without insurance in the state is a misdemeanor. Reporting the driver can result in fines, license suspension, or registration revocation.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

South Carolina's fault-based system holds the at-fault driver responsible for damages, and the victim will file a car accident claim through the other driver's insurance company. However, the victim will still be penalized for uninsured driving under S.C. Code § 56-10-520. Punishment includes suspension of driving privileges and registration, fines, and jail time.

Can I Sue an Uninsured Driver in South Carolina?

Yes. A victim can sue an uninsured driver to recover damages for injuries or property. In South Carolina, a victim can pursue compensation from an uninsured driver through the magistrate court for claims up to $7,500 (S.C. Code § 22-3-10) and the circuit court for claims exceeding $7,500. Recovery may be enforced through wage garnishment, property liens, or bank levies. Still, recovery from an uninsured driver can be difficult if they lack assets or income. In such cases, uninsured motorist (UM) coverage offers a realistic path to cover damages.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in South Carolina?

Yes. Per SC Code § 38-77-150, all auto insurance policies in South Carolina must include uninsured motorist (UM) coverage. UM compensates for bodily injury and property damage caused by an uninsured driver. Under SC Code § 38-77-170, UM coverage applies to hit-and-run incidents with physical contact and timely police reporting. Additionally, underinsured motorist (UIM) coverage can help cover additional damages. Likewise, MedPay and collision coverages can cover applicable damages.

What Is Uninsured Motorist Coverage in South Carolina?

In South Carolina, uninsured motorist (UM) coverage is a compulsory component of every auto insurance policy, required to protect insured drivers from uninsured at-fault drivers or in hit-and-run accidents. According to state law, a UM coverage must be equal to the minimum liability coverage of $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage (South Carolina Code § 38-77-150 and S.C. Code § 38-77-170).

Underinsured motorist (UIM) coverage, on the other hand, is optional in the state but must be offered by insurance companies (S.C. Code § 38-77-160). A UIM coverage protects victims when the at-fault driver's liability policy doesn't fully cover losses.

What If I Don't Have Uninsured Motorist Coverage in South Carolina?

Every South Carolina auto insurance policy requires uninsured motorist (UM) coverage. A driver without UM will also lack auto insurance. Driving without insurance is a misdemeanor punishable under the law. Notwithstanding, drivers in accidents caused by an uninsured motorist in the state may still pursue compensation through these options:

• File a civil lawsuit against the at-fault driver under S.C. Code § 38-77-140 for damages
• Petition the SCDMV to suspend the driver's license and registration if a civil judgment remains unpaid for 30 days (S.C. Code § 56-9-430)
• Apply for victim compensation through the South Carolina Crime Victim Compensation Program if the accident involved a criminal offense like DUI or hit-and-run (S.C. Code § 16-3-1110 et seq.). The program covers up to $15,000 for medical bills and lost wages.

How Do I Get Compensation from an Uninsured Driver in South Carolina?

In South Carolina, the injured party can file a civil lawsuit to recover damages from an at-fault driver who lacks insurance. While magistrate courts handle claims up to $7,500 (S.C. Code § 22-3-10), circuit courts handle those exceeding $7,500. To initiate a legal action, the injured party should file a complaint with the magistrate or circuit court in the county of the accident or the defendant. The complaint must outline the facts, the damages suffered, and the legal basis for liability.

After filing, the court issues a summons, which the plaintiff or their attorney must serve on the defendant (Rule 4 of the South Carolina Rules of Civil Procedure). The defendant has 30 days to respond (Rule 12(a)) to the summons. If the defendant fails to respond, the plaintiff may request a default entry under Rule 55(a) and seek a default judgment under Rule 55(b).

If the defendant responds, both sides enter discovery. They exchange evidence, take depositions, and file motions. The case may be resolved through settlement negotiations, mediation, or trial. If the plaintiff wins, the court may enforce the judgment via garnishment, liens, or levies (S.C. Code § 15-39-410 et seq.). The judgment remains valid even if the uninsured driver lacks assets.

How Much Can You Recover From an Uninsured At-Fault Driver in South Carolina?

The damages a victim can recover from an uninsured at-fault driver depend on the driver's assets and income. If the driver is judgment-proof, the enforcement of awarded damages may be slow or limited. The law allows recovery in small claims handled in magistrate courts up to $7,500 (S.C. Code § 22-3-10). However, there is no statutory cap on recovery damages for claims filed in the circuit.

Once a judgment is entered, it accrues post-judgment interest at a rate the South Carolina Supreme Court sets annually. Per S.C. Code § 34-31-20(B), the rate equals the prime rate plus four percentage points, compounded annually. For example, the legal interest rate for judgments entered between January 15, 2025, and January 14, 2026 is 11.50%.

Judgments accrue interest at a rate the South Carolina Supreme Court sets annually. Per S.C. Code § 34-31-20(B), the rate equals the prime rate plus 4%, compounded yearly.

How To Find Out If the At-Fault Driver Has Insurance in South Carolina

Motorists can find out if the at-fault driver has insurance by reviewing the DMV collision report. Under S.C. Code § 56-10-225, drivers must carry and present proof of insurance when requested during accident investigations. If the driver has insurance, it'll be captured in the report. Also, officers issue an FR-10 form, which documents insurance details after an accident. This form is submitted to the SCDMV within 15 days. Involved parties may request the collision report, including the FR-10, using the "Request for Copy of Collision Report (FR-50)" form. Additionally, during litigation, the claimant may request insurance details, including existence and content, under Rule 26(b)(2) of SCRCP.

Are Accidents Public Record in South Carolina?

Yes. Accident-related court records are public under South Carolina FOIA (S.C. Code Ann. § 30-4-10 et seq.), unless sealed. However, DMV reports are restricted by FOIA (S.C. Code Ann.§ 30-4-40(a)(2)) and the federal Driver's Privacy Protection Act (DPPA), which limit the disclosure of personal information. Also, while police accident reports are public, they may contain redactions.

Can You Go to Jail for Causing an Accident Without Insurance in South Carolina?

Driving without insurance is a misdemeanor under S.C. Code § 56-10-225(C) and may result in jail time. Additionally, using fake or altered insurance documents can lead to felony charges under S.C. Code § 16-13-10 and § 16-14-10 et seq., punishable by imprisonment.

Can You Settle With an Uninsured Driver Out of Court in South Carolina?

Yes. Out-of-court settlements with uninsured drivers are allowed in South Carolina as long as they meet the state's requirements for binding contracts in S.C. Code § 38-77-260, where a contract must include a disclosure statement and a 3-day wait period between payment and signing.

Can I Get Compensation If I Was Partially at Fault?

Yes. However, South Carolina's modified comparative negligence rule (S.C. Code § 15-38-15) bars recovery if the claimant is over 50% at fault (e.g., 51%). Insurance company adjusters or the court assign fault percentages to each motorist and then share the liability accordingly. For example, if the claimant is 30% at fault and total damages are $100,000, the claimant will receive $70,000.