South Carolina requires drivers to carry auto insurance, but not every driver follows the law — and even those who do often carry only the state’s minimum liability limits. That’s where uninsured motorist (UM) and underinsured motorist (UIM) coverage come in. These two types of coverage sound similar, but they protect you in different situations, and understanding the difference can make a significant impact on your ability to recover compensation after a crash.
What Is Uninsured Motorist (UM) Coverage?
Uninsured motorist coverage applies when the at-fault driver has no liability insurance at all, or in hit-and-run situations where the responsible driver can’t be identified. South Carolina requires every auto insurance policy to include a minimum amount of UM coverage, which pays for your medical bills, lost wages, and pain and suffering when the at-fault party has no insurance to cover your losses. We discuss this in more detail in our post on hit-and-run accidents in South Carolina, since UM coverage is often the primary path to compensation when a driver flees the scene.
What Is Underinsured Motorist (UIM) Coverage?
Underinsured motorist coverage applies when the at-fault driver does have insurance, but their liability limits aren’t enough to cover the full extent of your damages. For example, if you suffer $75,000 in medical bills and lost wages but the at-fault driver only carries $25,000 in liability coverage, your UIM coverage can potentially make up the difference, up to your own policy’s limits. Unlike UM coverage, South Carolina does not automatically require UIM coverage on every policy — drivers must typically elect it, though many insurers include it by default unless it’s rejected in writing.
Why the Distinction Matters
Many South Carolina drivers assume that if the other driver has insurance, they’re fully protected. Unfortunately, the state’s minimum liability requirements are often too low to cover serious injuries, especially in crashes involving hospitalization, surgery, or long-term rehabilitation. This is a common issue on rural highways throughout Williamsburg, Florence, and Clarendon Counties, where higher speeds can lead to more severe collisions. Without adequate UIM coverage, injured victims can be left covering significant out-of-pocket costs even after the at-fault driver’s insurance pays out.
How These Claims Work in Practice
Both UM and UIM claims are technically filed against your own insurance company, not the at-fault driver. This might sound straightforward, but insurance companies — including your own — have a financial incentive to minimize what they pay out. It’s not unusual for an insurer to dispute the severity of your injuries, argue that pre-existing conditions are to blame, or delay the claims process in hopes that you’ll accept a lower settlement.
Because these are still adversarial claims, it’s just as important to have legal representation for a UM or UIM claim as it would be in a claim against a negligent third party. For more on how insurers use certain tactics against accident victims, read our post on how insurance companies use recorded statements against you.
Reviewing Your Policy Before an Accident Happens
One of the most valuable things a South Carolina driver can do is review their policy’s UM and UIM limits before they ever need to use them. Many drivers don’t realize they carry only the state minimum until after a serious crash, when it’s too late to increase coverage. If you’re unsure what coverage you carry, your insurance agent or a personal injury attorney can help you review your declarations page and understand your protection.
What To Do If You Need to File a UM or UIM Claim
- Report the accident to your insurance company promptly.
- Gather documentation of all medical treatment, lost wages, and property damage.
- Avoid giving a recorded statement to any insurance adjuster without legal guidance.
- Keep records of all communication with your insurer.
- Consult an attorney before accepting a settlement offer, even from your own insurance company.
To learn more about how coverage disputes and denials work more broadly, visit our Insurance Coverage Denials practice area page.
Frequently Asked Questions
Is UM/UIM coverage required in South Carolina? South Carolina requires insurers to offer at least minimum uninsured motorist coverage on every auto policy. Underinsured motorist coverage is typically offered as well, but a driver may be able to reject it in writing, so it’s worth confirming what coverage you actually carry.
Can I use UM or UIM coverage if I was a passenger, pedestrian, or cyclist? In many cases, yes. UM and UIM coverage can extend to passengers in your vehicle, and in some situations to pedestrians or cyclists struck by an uninsured or underinsured driver, depending on the specific policy language.
Will filing a UM or UIM claim cause my insurance rates to increase? Insurance companies generally aren’t supposed to raise your rates simply because you filed a claim for an accident that wasn’t your fault, though practices can vary by insurer. An attorney can help you understand your rights if you’re concerned about this.
Have Questions About Your Coverage? Contact Sabb Law Group
Whether you’re dealing with an uninsured driver, an underinsured driver, or simply want to understand your policy better, the attorneys at Sabb Law Group are here to help drivers throughout Kingstree, Lake City, and across South Carolina. Contact us today for a free consultation.
