HILTON HEAD ISLAND, S.C. - Even if you see someone's valid insurance card in an auto accident, that doesn't mean everything will turn out OK. The person could be underinsured, which state officials say can be as bad as having no insurance at all.

A survey of several of the state's major auto insurance providers by the South Carolina Insurance News Service says about a third of all drivers in the state carry the bare minimum in coverage limits.

The survey said the average policy holder pays $43.63 a year to protect against underinsured drivers, more than twice as much as what's paid to protect against those with no insurance at all ($20.62.)

"We all hate paying insurance until we need it," AAA Carolinas spokesman Tom Crosby said. "It's silly to be underinsured. It just means that you recognized the value of insurance to some degree and you're saying, 'If I get into an accident, it won't be a serious one.' "

If a driver gets hit by someone without enough insurance, they could pay for damage caused by somebody else. And then the underinsured party could be sued by the motorist they hit to recoup damages and medical expenses not covered.

"If you're underinsured and you are at fault in an accident, people can go beyond your insurance and after any assets you have," Crosby said.

Allison Dean Wright of the South Carolina Insurance News Service says the survey of five major insurance providers shows 33.5 percent of those with policies here drive with the minimum coverage limits.

And that's on top of the 22 percent or so, it's estimated, who drive without insurance, she said.

Minimum liability coverage in the state is $15,000 in medical fees per person injured, $30,000 in medical fees per accident and $10,000 in property damage.

Uninsured motorist coverage is required, underinsured coverage is not - although a company must offer to provide it up to the same level as the liability coverage, Wright said.

Dean Kruger, chief actuary of the South Carolina Department of Insurance, said the agency will likely tackle the problems of underinsured drivers in the 2005 legislative session. Until then, he said, the focus will be on those who drive without any insurance.

In February, insurance companies and the state Division of Motor Vehicles will use a shared database to track those who drive without insurance.

Kruger says insufficient coverage would probably involve increasing medical and property damage limits - which he says might mean increased costs.

Before that's possible, Kruger says there would have to be better ways to enforce guidelines - because if you raise limits, he said that might mean more people simply won't buy any policy at all.

Information from: The Island Packet