On the South Carolina Property & Casualty exam, the Personal Automobile Policy appears both as a standard ISO-style contract and as a set of South Carolina auto statutes you must apply. This standalone guide reviews the policy's coverage parts, then drills into the South Carolina overlay: the 25/50/25 financial-responsibility minimums, the at-fault (tort) system with modified comparative negligence, the unusually strong uninsured-motorist rule, the optional underinsured-motorist coverage, and the named-driver exclusion. The South Carolina-specific material is where most state credit is earned.

Policy structure (the national base)

The Personal Auto Policy (PAP) is a packaged contract organized into lettered parts:

• Part A — Liability: pays bodily injury (BI) and property damage (PD) the insured is legally liable for; the insurer provides a defense, and defense costs are paid in addition to the limit.
• Part B — Medical Payments: pays medical/funeral costs for occupants regardless of fault.
• Part C — Uninsured/Underinsured Motorists: pays the insured's injuries when the at-fault party is uninsured or underinsured.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, settled at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions.

Limits may be written as split limits (e.g., 100/300/50) or as a Combined Single Limit (CSL). Insureds include the named insured, resident spouse, resident relatives, and permissive users. Eligible vehicles are private passenger autos, pickups, and vans not used mainly for business. That framework is national; South Carolina governs the limits and the liability environment around it.

South Carolina uses a tort (at-fault) liability system

South Carolina is an at-fault / tort state, not a no-fault state. The driver who causes a crash is financially responsible, and the injured party collects from that driver's liability coverage or by filing suit. This is why liability coverage and financial responsibility dominate South Carolina auto law.

South Carolina applies modified comparative negligence. The rule to remember: a claimant who is more than 50% at fault is barred from recovering anything (often described as a 51% bar). If the claimant is 50% or less at fault, they may recover, but the award is reduced by their own percentage of fault. (Contrast this with pure comparative states, where even a 90%-at-fault claimant recovers a sliver, and with contributory negligence states, where any fault bars recovery.) Treat the exact threshold as commonly cited and verify.

Financial responsibility: 25/50/25

Every South Carolina driver must show financial responsibility, usually by carrying liability insurance at or above the minimum split limits:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident

Shorthand: "25/50/25." Note that South Carolina's property-damage minimum is $25,000—higher than several neighboring states' $20,000 floors. These are statutory minimums; producers routinely recommend higher limits. Driving without the required coverage brings fines, fees, and possible license/registration suspension. An SR-22 is a certificate the insurer files to prove an at-risk driver carries the required coverage.

Uninsured and underinsured motorist rules

This is the most heavily tested South Carolina auto area, and it has a distinctive twist:

• Uninsured Motorist (UM) coverage is MANDATORY on every South Carolina auto policy, at limits equal to the policy's liability limits (not just the bare 25/50 minimum). UM also responds to hit-and-run drivers. This "UM equal to liability limits" rule is a South Carolina signature—commit it to memory.
• Underinsured Motorist (UIM) must be offered to the insured at limits up to the liability limits, but it is optional—the insured may buy or decline it. UIM pays the gap between the at-fault driver's lower BI limits and the insured's UIM limit.
• Stacking (combining UM/UIM limits across vehicles or policies) may be allowed in some situations; the specific rules vary, so verify.

Memorize the headline: in South Carolina, UM is mandatory at limits equal to the liability limits, while UIM must be offered but is optional.

The named-driver exclusion

South Carolina permits a named-driver exclusion, which lets the policy remove a specific household driver from coverage. This is useful when a household has a high-risk driver who is insured elsewhere or does not drive the covered autos. Expect a question testing that South Carolina allows this exclusion.

Optional and physical-damage coverages

• Medical Payments (Med Pay) is optional and pays medical/funeral costs regardless of fault. South Carolina does not mandate PIP/no-fault.
• Collision and Comprehensive (Other Than Collision) are optional but typically required by a lender. Hitting an animal is Comprehensive, not Collision.
• Gap (loan/lease) coverage can pay the difference between a totaled financed vehicle's ACV and the loan balance.

Cancellation and nonrenewal

South Carolina regulates how an insurer may end a personal auto policy, generally requiring advance written notice before cancellation or nonrenewal so the insured can find replacement coverage. The exact notice periods (with a shorter window typically allowed for nonpayment of premium) should be verified against current rules. On mid-term cancellation, the insurer refunds the unearned premium.

Required vs. optional coverages

Key South Carolina numbers to memorize

Common exam traps

• South Carolina is at-fault (tort), not no-fault—there is no mandatory PIP.
• UM is mandatory at limits EQUAL to the liability limits, not just the 25/50 minimum—this is the classic South Carolina trap.
• UIM is offered/optional, not mandatory—don't confuse it with UM.
• 25/50/25—the property-damage minimum is $25k, not $20k.
• Modified comparative negligence: more than 50% at fault = barred (the 51% bar—watch the wording).
• Hitting an animal is Comprehensive, not Collision.
• Liability defense costs are paid on top of the limit (national rule that still applies).

Quick recap

• The PAP's Parts A–F structure is national; South Carolina sets the limits and legal framework.
• South Carolina is a tort/at-fault state using modified comparative negligence—a claimant more than 50% at fault recovers nothing.
• Minimum liability is 25/50/25.
• Uninsured Motorist is mandatory at limits equal to the liability limits, and Underinsured Motorist must be offered but is optional.
• South Carolina allows a named-driver exclusion and has no mandatory no-fault/PIP.
• Cancellation/nonrenewal generally requires advance written notice (verify the periods); mid-term cancellation refunds unearned premium.