Car insurance claim rules in South Carolina

What the law expects of your insurer

South Carolina's claim practices law, S.C. Code §38-59-20, lists improper claim practices instead of a day-by-day schedule. An insurer that does these things without just cause and often enough to show a general business practice breaks the law:

• Failing to acknowledge pertinent communications about claims with reasonable promptness.
• Failing to adopt and follow reasonable standards for promptly investigating and settling claims.
• Not attempting in good faith to reach a prompt, fair and equitable settlement once liability is reasonably clear.
• Any other practice that amounts to an unreasonable delay in paying or an unreasonable failure to pay.

Two other rules in the same chapter have numbers. If the insurer wants a written proof of loss and doesn't send you the form within 20 days of your notice, a written description of the loss sent within the policy's deadline counts (§38-59-10). And under §38-59-40, if an insurer refuses to pay a covered claim within 90 days after you demand payment, and the trial judge finds the refusal was without reasonable cause or in bad faith, the insurer pays your reasonable attorney's fees, up to one-third of the judgment.

Put your demand in writing and date it; that starts the 90 days. Our page on claims that drag on covers what to put in it.

When a South Carolina car is a total loss

The title law, S.C. Code §56-19-480(G), treats a car as a salvage or total loss vehicle when the cost of repairs, both parts and reasonable market charges for labor, equals or exceeds 75% of its fair market value. For an insured loss, value is measured just before the event that caused the claim.

• Cars worth $2,000 or less and antique vehicles fall outside the rule, so the insurer's own formula decides.
• The title goes to the DMV. The insurer must deliver the title with a damage report. If you accept a total loss offer and don't hand over the title within 30 days, the insurer can apply for a salvage title after two written requests.
• Keeping and rebuilding a car estimated at 75% or more requires an affidavit from the rebuilder, and the new title is branded as salvaged rebuilt.

What the settlement should include is in our guide to total loss claims, and the total loss check runs the 75% test on your numbers.

Reporting a South Carolina crash

Under S.C. Code §56-5-1260, the driver in a crash that injures or kills anyone must notify the police right away by the quickest means: the local police in a city or town, otherwise the county sheriff or the nearest Highway Patrol office.

If no officer investigates a crash with an injury, a death or total property damage of $1,000 or more, the driver or owner must report it to the Department of Motor Vehicles within 15 days, with proof of liability insurance (§56-5-1270). Not filing properly is treated as evidence that the car was uninsured. When an officer does investigate, the officer sends the report within 24 hours of finishing.

Fault and who pays

South Carolina is an at-fault state. The driver who caused the crash, through their liability insurance, pays for the other people's injuries and damage. The state Supreme Court adopted comparative negligence in Nelson v. Concrete Supply Co. (1991): you can recover if your negligence is not greater than that of the defendants combined, and your recovery drops by your share. At 51% you recover nothing.

If the other insurer is slow to accept fault, your own collision coverage can pay for repairs now; your insurer then seeks the money from the other side, deductible included.

Deadlines to sue and where to complain

S.C. Code §15-3-530 sets three years for an action for injury to the person and for damage to property. Settlement talks don't stop that clock.

1. Ask the insurer in writing for the reason for a denial or a low offer, and date your demand for payment.
2. Call the South Carolina Department of Insurance at 803-737-6160.
3. File a complaint through the department's Consumers page or the online complaint form. Our guide to insurance department complaints shows what to include.

Questions people ask