Uninsured and underinsured driver claims in Greenville, SC

What counts as “uninsured” or “underinsured”

South Carolina's insurance code defines these terms (S.C. Code § 38-77-30):

• An uninsured motor vehicle is one without liability insurance at the state minimum limits. It also covers a vehicle whose insurer successfully denies coverage, a vehicle whose insurer is insolvent or otherwise can't fully pay a judgment, and a vehicle whose owner or operator is unknown, as in a hit-and-run.
• An underinsured motor vehicle has at least the minimum liability coverage, but less than the injured person's damages.

Driving uninsured is itself illegal. Owners who operate, or allow operation of, an uninsured vehicle face fines or jail and suspension of their license and registration (S.C. Code § 56-10-520).

Uninsured motorist (UM) coverage

• Mandatory: no auto policy may be issued in South Carolina without UM coverage, which pays what you are legally entitled to recover from an uninsured driver, within limits no lower than the state minimums ($25,000/$50,000) (§ 38-77-150(A)).
• Property damage: it must include at least $25,000 for damage to your property, with a possible exclusion of the first $200 (same section).
• Higher limits: insurers must offer additional UM coverage up to your liability limits (§ 38-77-160).

Underinsured motorist (UIM) coverage

• Optional but must be offered: insurers must offer UIM up to your liability limits. It covers damages beyond the at-fault driver's liability limits, or beyond a statutory damages cap (§ 38-77-160).
• The S.C. Department of Insurance notes UIM must be offered but you are not required to buy it, so many people don't have it. Check before assuming.
• Settlement consent: a UIM policy may not require the insurer's consent before you settle with the at-fault driver. If the at-fault driver's insurer pays its limits, the UIM insurer may take control of the defense of the action for its own benefit (§ 38-77-160).

Which policy applies, and how much

Section 38-77-160 limits combining ("stacking") excess coverage:

• If you have UM or UIM above the basic limits, you are protected only to the extent of the coverage on the vehicle involved in the crash.
• If none of your vehicles was involved, for example if you were a pedestrian, cyclist, or passenger in someone else's car, excess coverage is available only up to the coverage on any one of your vehicles that has it.

How those rules apply to multiple policies in a household is often disputed and depends on the policy language, which is why a lawyer should read the actual policies.

How a UM/UIM claim works

1. Notice

   Tell your insurer promptly about the crash and that the other driver may be uninsured or underinsured. Your policy will have notice requirements.

2. Establish the other driver's coverage

   The at-fault driver must keep proof of insurance in the vehicle and show it on a police officer's request (§ 56-10-225). SCDMV may tell an injured person whether insurance is shown on a crash report (§ 56-5-1340).

3. Document damages

   Medical records and bills, wage loss, and repair or total-loss documents.

4. Lawsuit and service on your insurer

   If a lawsuit is needed, no action may be brought under the UM or UIM provision unless the pleadings are served on the insurer, which then has 30 days to appear and may defend in the other driver's name (§§ 38-77-150(B), 38-77-160).

How to find out what coverage you have

• Pull the declarations page for every auto policy in your household, including cars and motorcycles. Look for "Uninsured Motorist" and "Underinsured Motorist" with their limits.
• If a rideshare vehicle was involved, the TNC's policy must include UM coverage during app-on and trip phases (§ 58-23-1630). See rideshare crashes.
• If you were driving for work, ask your employer about its commercial auto policy.

When your insurer won't pay fairly

South Carolina defines "improper claim practices" for insurers when committed without just cause and frequently enough to indicate a general business practice. Examples include misrepresenting coverage, failing to acknowledge claim communications with reasonable promptness, and not attempting in good faith to settle when liability is reasonably clear (S.C. Code § 38-59-20). The Department of Insurance's Office of Consumer Services accepts complaints about claim disputes. It asks consumers to first give the insurer a chance to resolve the issue, and to provide the company name, policy and claim numbers, date of loss, and supporting documents.

Deadline

The underlying injury claim generally must be filed within three years (§ 15-3-530(5)). Your policy may have its own notice and proof-of-loss terms. See deadlines.

Reading a declarations page, line by line

Once you have each household declarations page (see above), check these entries before talking to an adjuster:

• Uninsured motorist (UM) limits: per person, per accident, and property damage;
• underinsured motorist (UIM) limits, or a note that UIM was declined;
• which vehicles and drivers are listed;
• any medical payments coverage.

Insurers must offer UM above the minimum, and UIM, up to your liability limits (S.C. Code § 38-77-160). If you aren't sure what you chose, ask your agent or insurer for a certified copy of the policy.

Questions to ask a lawyer about a UM or UIM claim

1. Which policies in my household could apply, and in what order?
2. Do the other driver's limits need to be confirmed or tendered before a UIM claim goes forward?
3. When do my own insurer's pleadings need to be served under §§ 38-77-150(B) and -160?
4. Will my own insurer defend the other driver in name, and what does that mean for me?
5. If my insurer delays, what are my options under § 38-77-160 and § 38-59-20?