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Date Published: January 5, 2005
S.C. hikes uninsured penalties
Motorists' deadline on violations reduced to 20 days
By SHARRON HALEY
Item Staff Writer
shaley@theitem.com
Beginning Jan. 1, uninsured drivers in South Carolina
increased their risk of losing their driver's licenses.
"When
an auto insurance policy is canceled or lapses, the insurance
company notifies the South Carolina Department of Motor Vehicles,"
said DMV spokeswoman Beth Parks. "The SCDMV immediately sends out a
letter informing the uninsured driver of pending
suspensions."
According to statistics from the South Carolina
Insurance News Service, 22 percent of South Carolina vehicles are
uninsured.
On Jan. 1, the length of time an uninsured
motorist has to respond to the DMV's letter was reduced from 45 days
to 20 business days.
Uninsured drivers who reinstate their
insurance within 20 business days will be fined $5 for every day
they went without insurance up to $200, Parks said. Those who allow
the grace period to lapse will lose more than their driving
privileges; they'll also need to dig deep into their
wallets.
"We call it suspending the privilege to drive,"
Parks said. "The DMV will suspend a person's driver's license,
vehicle registration and plates. The Highway Patrol will even send
someone to pick up the tags."
After 20 business days,
motorists will have to pay a $200 fee to regain their driver's
license and $200 in fines, Parks said.
Drivers who allow
their insurance to lapse will be required to show the DMV proof of
insurance every seven months for the next three years.
"While
one out of every four vehicles is uninsured, the bigger problem is
underinsured motorists," said Allison Love, executive director of
the South Carolina Insurance News Service. "Sixty percent of the
vehicles in South Carolina are underinsured."
An underinsured
motorist carries only minimal insurance coverage, Love said, and
doesn't have enough coverage to cover most medical bills. The South
Carolina Legislature and the state Insurance Commission set the
minimums for auto insurance coverage in South Carolina at 15/30/10,
which means coverage up to $15,000 for each person injured in a
wreck, subject to a limit of $30,000 total for each wreck and
$10,000 coverage for property damage.
Individuals can
increase their insurance limits as they see fit.
In South
Carolina, motorists are required by law to purchase uninsured
motorist insurance to cover the cost of an accident should the other
person not have insurance, said Donald Hardy of Hardy Insurance in
Manning.
This cost can run as much as $21 annually, Love
said.
While South Carolina does not require a motorist to
purchase underinsured motorist insurance, Love said it's a good
idea.
"If you're hit by someone who only has the bare
minimum, your underinsured motorist insurance coverage will kick
in," Love said.
Underinsured motorists' coverage can cost up
to $44 each year, Love said.
Hardy said to think of
underinsured motorists' coverage as supplemental
insurance.
"Underinsured coverage pays for the costs not
covered by those drivers who buy only the minimum coverage," he
said.
The numbers of uninsured motorists in the state have
been decreasing, Love said.
In 1997, a survey by South
Carolina Insurance News Service showed 28 percent of the vehicles on
South Carolina roadways were uninsured compared to just 22 percent
two years ago when the latest statistics were released, she
said.
"Uninsured vehicles are still a problem in South
Carolina," she said. "We hope the latest changes will help reduce
the number of uninsured motorists, which will also reduce the
insurance premiums for everyone."
Contact Staff Writer
Sharron Haley at shaley@theitem.com or
803-435-8511.
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January 27, 2005 
