Have you ever wondered what would happen if you’re in an accident and the other driver either doesn’t have insurance, or doesn’t have enough to cover your medical bills and damaged car?
That’s exactly the situation uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) are designed for. And here in South Carolina, understanding how this coverage works isn’t just smart, it’s essential.
The Thumbs Up Guys have seen firsthand how often uninsured drivers cause serious accidents and how insurance companies try to lowball the very victims this coverage is supposed to protect. Let’s break it all down.
What is Uninsured Motorist Coverage?
Uninsured motorist coverage (UM) is a type of auto insurance that protects you when you’re injured, or your property is damaged, by a driver who has no insurance at all. Instead of going after a driver who has nothing to give, you file a claim with your own insurance company.
According to the Insurance Information Institute, roughly one in eight drivers on U.S. roads is uninsured. South Carolina consistently ranks among the worst states for uninsured drivers. When you’re sharing the road with that many uninsured motorists, the coverage isn’t optional, it’s a financial lifeline.
Uninsured motorist coverage falls into two main buckets:
- Uninsured Motorist Bodily Injury (UMBI)- covers your medical expenses, lost wages, pain and suffering, and other injury-related costs when an insured driver is at fault.
- Uninsured Motorist Property Damage (UMPD)- covers damage to your vehicle or other property caused by an uninsured driver.
UM coverage also typically protects you in hit-and-run accidents, where the at-fault driver flees the scene and can’t be identified. That alone makes it worth having.
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What Does Uninsured Motorist Coverage Actually Cover?
When people ask “what is uninsured motorist coverage,” they really want to know: what does it pay for? Here’s a breakdown:
Uninsured Motorist Bodily Injury covers:
- Medical bills- ER visits, surgeries, physical therapy, chiropractic care, and ongoing medical treatment
- Lost wages– income you couldn’t earn while recovering
- Pain and suffering- compensation for the physical and emotional toll of your injuries
- Future medical expenses- in your injuries require long-term care
- Wrongful death damages- for families who lose a loved one in an accident caused by an uninsured driver
Uninsured motorist property damage covers:
- Repair or replacement on your vehicle
- Damage to personal property inside your car (in some cases)
- Damage caused by a hit-and-run driver (varies by policy)
It is important to note that UM coverage does not cover your own at-fault accidents. It only applies when an uninsured or underinsured driver is legally responsible for your injuries or property damage.
UM vs. UIM: What’s the Difference?
This is where most people get confused, and where a lot of money can get left on the table. Here’s the simple distinction:
Uninsured motorist coverage kicks in when the at-fault driver has zero insurance.
Underinsured motorist coverage kicks in when the at-fault driver has some insurance, but not enough to fully cover your damages.
| Uninsured Motorist | Underinsured Motorist | |
| Who it covers you against | At-fault driver has $0 coverage | At-fault driver’s policy can’t cover your full damages |
| Required in SC | Yes- minimum required by law | Yes- offered with UM; you may reject in writing |
| Covers medical bills? | Yes | Yes, for the gap |
| Kicks in when… | At-fault driver has $0 coverage | At-fault driver’s policy can’t cover your full damages |
| Cover’s property damage? | Yes, UMPD | Typically not |
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A Real-World Example
Say you’re in a serious accident in Charleston and you have $80,000 in medical bills. The at-fault driver only has $25,000 in liability coverage; the state minimum. That leaves a $55,000 gap.
Without UIM coverage, you’re stuck chasing that gap on your own. With UIM coverage, your own policy steps in to cover the difference, up to your policy limits. That’s a massive difference when your health and finances are on the line.
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South Carolina Uninsured Motorist Coverage Requirements
South Carolina takes uninsured motorist coverage seriously, and the law reflects that. Here’s what every South Carolina driver needs to know:
SC Minimum UM Coverage Requirements
Under South Carolina Code 38-77-150, all auto insurance policies issued in the state must include UM coverage at the following minimum limits:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 per accident for property damage
Can You Reject UM Coverage in South Carolina?
Yes, but only in very specific circumstances, and it has to be done in writing. South Carolina law allows you to reject UM/UIM coverage if you sign a written rejection form. However, given the high rate of uninsured drivers in this state, rejecting it is almost never a good idea.
Stacked vs. Unstacked Coverage in SC
South Carolina is one of the states that allows “stacked” uninsured motorist coverage. Stacking means you can combine the UM limits from multiple vehicles on your policy to increase the total coverage available.
Example: if you have two cars, each with $50,000 in UM coverage, stacking allows you to access up to $100,000 in total UM coverage for a single accident. This can be a game-changer in serious injury cases.
SC Uninsured Motorist Property Damage Rules
South Carolina also has a specific rule for UMPD claims: there is typically a $200 deductible that applies to uninsured motorist property damage claims. Additionally, in SC, UMPD generally requires physical contact between your vehicle and the uninsured vehicle for a hit-and-run claim, so phantom vehicle claims may not be covered.
| SC Fast Facts on Uninsured Motorist Coverage |
| Required by law at $25K/$50K/$25K minimums |
| Can be stacked across multiple vehicles on the same policy |
| Can be rejected in writing, but it’s rarely advisable |
| UMPD requires physical contact for hit-and-run claims |
| SC has one of the highest rates of uninsured drivers in the U.S. |
Why You Need Uninsured Motorist Coverage – Even if the Law Requires It
Most people don’t think about their insurance coverage until they need it. But the truth is, the state minimum may not be enough.
The state-required $25,000 in UM bodily injury coverage sounds like a lot, until you factor in a single ER visit, surgery, weeks of physical therapy, and months of missed work. Medical costs in serious car accidents routinely run into six figures.
Our advice? Talk to your insurance agent about carrying UM/UIM limits that actually reflect the value of your health, income, and the quality of life, not just the legal minimum.
Your Insurance Company Isn’t Always on your Side
Here’s something the insurance companies don’t advertise: even when you’re filing a UM claim with your own insurer, they still have a financial incentive to pay you as little as possible. They may dispute fault, undervalue injuries, or drag the process out hoping you’ll settle for less.
Hiring a personal injury attorney to fight for you is crucial in recovering the compensation you deserve.
Frequently Asked Questions About Uninsured Motorist Coverage
Does uninsured motorist coverage cover hit-and-run accidents?
In most cases, yes, If the hit-and-run driver makes physical contact with your vehicle in South Carolina. Your UM coverage can then step in to cover your injuries and property damage. If there is no physical contact, coverage may be denied.
Do I need uninsured motorist coverage if I have health insurance?
Health insurance may cover your medical bills, but it won’t compensate you for lost wages, pain and suffering, or property damage. UM/UIM coverage fills those gaps, and in many cases, it’s far cheaper to carry strong UM coverage than to deal with the fallout of being underprotected.
What if the at-fault driver’s insurance company denies my claim?
If the at-fault driver’s insurer won’t pay what you’re owed, or if they’re uninsured entirely, you may need to file a claim with your own UM/UIM carrier. If that insurer also disputes your claim or makes a lowball offer, an experienced personal injury attorney can fight on your behalf.
Can I sue an uninsured driver directly?
Technically, yes. However, practically, it’s often not worth it. If someone doesn’t have insurance, they typically don’t have significant assets either. Your UM coverage exists precisely because going after an uninsured driver in court often results in little to no recovery. That’s why having the right UM limits matters so much.
Hit By an Uninsured Driver? Don’t Fight the Insurance Companies Alone.
Being hit by an uninsured or underinsured driver is stressful, painful, and financially scary. You shouldn’t have to navigate the insurance maze on your own. At The Thumbs Up Guys, we know how insurance companies think; because we fight them every single day. We work on a contingency fee basis, meaning you don’t pay us a dime unless we win your case. Give us a call today for a free case evaluation.
Call or text (843) 380-8350 or complete a Free Case Evaluation form
