« Back to News Room Number of Uninsured Motorists in South Carolina Down January 21, 2009 FOR IMMEDIATE RELEASE Russ Dubisky, Executive Director 803-252-3455 or cell phone 803-708-5271 russd@scinsnews.com Columbia, SC – January 21, 2009 – Approximately one in 10 drivers across South Carolina may be driving uninsured, according to a new study from the Insurance Research Council (IRC), a Pennsylvania based nonprofit research organization. The estimated percentage of uninsured motorists has decreased dramatically from the last study where South Carolina was ranked third in the nation. In the IRC study, South Carolina now has 9 percent uninsured motorists and ranks 38 in the nation. The estimated percentage of uninsured motorists nationally is 13.8 percent. In the last study conducted by the IRC in 1997, South Carolina had 28 percent uninsured motorists when the national average was 14 percent. The IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers with claims made by individuals who were injured by drivers with insurance. The IRC warns the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate. “While the number of uninsured motorists in South Carolina has dropped in recent years, there are still nearly one in 10 vehicles uninsured. Not only do you need uninsured motorist coverage, but you also need underinsured motorist coverage, because many drivers in South Carolina carry just the minimum coverage,” said Allison Dean Love, executive director of the South Carolina Insurance News Service. South Carolina law requires motorists to have proof of financial responsibility. Most drivers do that through the purchase of automobile insurance. You can pay a $550 fee to the South Carolina Department of Motor Vehicles (DMV) to legally drive uninsured (if you qualify) but paying that fee does not provide any insurance coverage. Act 395, which took effect Jan. 1, 2007, raised the minimum amounts of liability insurance coverage and requires drivers to carry liability coverage of no less than $25,000 of bodily injury per person, $50,000 of bodily injury per accident and $25,000 of property damage coverage (usually written as 25/50/25). In the latest study from the National Association of Insurance Commissioners, South Carolina’s auto insurance costs are below the national average. South Carolina drivers on average spend $756.11 per year on auto insurance, which is $61 less than the national average of $817.11, according to the latest study from 2006 (latest data available). South Carolina law requires that insurance companies notify the DMV when a liability insurance policy is cancelled through the South Carolina Automobile Insurance Liability Reporting System (ALIR). Failure to verify insurance coverage can result in the suspension of your driver’s license and the vehicle plate/registration. If suspended, the owner may be required to pay fees of up to $400. The South Carolina Insurance News Service gives the following tips for drivers: Keep proof of insurance in your vehicle at all times to show to law enforcement officials if you are stopped or get involved in an accident. If you receive a letter from the DMV asking for proof of insurance, notify your insurance company as soon as possible so you can comply with the request within 20 business days. If you sold a vehicle and are requested to show proof of insurance for that vehicle, you must provide proof you sold the vehicle before you cancelled the insurance policy. For more information link to www.scdmvonline.net. At any time you do not show proof of insurance to the DMV, you may have to pay a $200 reinstatement fee, plus $5 per day for each day your vehicle was uninsured, up to $200 for a total of up to $400. If you are found guilty of driving uninsured, you driver’s license and registration privileges will be suspended until the DMV receives a $550 reinstatement fee. For more information on auto insurance in South Carolina, link to www.scinsurance.net. For more than 30 years, the South Carolina Insurance News Service, a nonprofit organization, has been providing free insurance information to consumers and the media about property and casualty insurance issues. The News Service is funded by insurance companies doing business in South Carolina. TV reporters: For insurance experts from around the state for an on-camera interview, please contact us at 803-252-3455 or 803-413-1044. 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