For the South Carolina Personal Lines exam, the Personal Auto Policy (PAP) is tested two ways: the national policy structure and the South Carolina auto laws layered on top of it. This standalone guide walks through the lettered parts every PAP uses, then focuses on the South Carolina rules an agent applies every day—financial-responsibility minimums, the at-fault legal system, the strong uninsured-motorist requirement, optional underinsured-motorist coverage, the named-driver exclusion, and how policies can be cancelled or nonrenewed. Spend your study time on the South Carolina overlay; that is where the state questions live.

The national fundamentals (quick version)

The Personal Auto Policy insures individuals and families for the vehicles they own and drive. It is divided into clearly labeled parts:

• Part A — Liability Coverage: pays for bodily injury (BI) and property damage (PD) the insured is legally responsible for, and includes a duty to defend with defense costs paid on top of the limit.
• Part B — Medical Payments: pays medical and funeral expenses for the insured and passengers regardless of fault.
• Part C — Uninsured/Underinsured Motorists (UM/UIM): pays your injuries when the at-fault driver has no insurance or too little.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, paid at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions set the rules.

An insured generally includes the named insured, the resident spouse, resident family members (including a child away at school), and anyone using the covered auto with permission. Eligible vehicles are private passenger autos, pickups, and vans not used primarily for business. A newly acquired auto generally gets automatic coverage for a limited time if reported as the policy requires. The PAP coverage territory is the United States, its territories and possessions, and Canada—not most of Mexico. That skeleton is the same nationwide; South Carolina changes the dollar limits and the legal environment around it.

South Carolina is an at-fault (tort) state

South Carolina follows a tort (at-fault) system rather than a no-fault system. Whoever causes the crash is financially responsible, and the injured person recovers from that driver's liability insurance—or sues. Because of this, liability coverage and proof of financial responsibility are the backbone of South Carolina auto regulation.

When both drivers share blame, South Carolina uses modified comparative negligence. Picture a simple cutoff: an injured person who is more than 50% responsible recovers nothing (commonly called the 51% bar). If their share is 50% or less, they can still collect, but the payout is trimmed by their own percentage of fault. This differs from a pure comparative system (where any at-fault claimant recovers something) and from a no-fault system (where each driver turns first to their own coverage). Treat the threshold as commonly cited and verify.

Financial responsibility: the 25/50/25 minimums

South Carolina drivers must demonstrate financial responsibility, almost always by buying liability insurance that meets the state's minimum split limits of 25/50/25:

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

Agents say this aloud as "25/50/25." Note that the property-damage floor is $25,000 in South Carolina—higher than the $20,000 seen in some states. These are bare-minimum floors; most clients should buy more to protect their assets. An uninsured driver faces fines and possible suspension. A driver who must prove coverage after a violation may have the insurer file an SR-22 certificate.

Mandatory uninsured motorist coverage (equal to liability limits)

Here is the point South Carolina agents must never get wrong: Uninsured Motorist (UM) coverage is required on every South Carolina auto policy, at limits EQUAL to the policy's liability limits—not merely the 25/50 minimum. UM protects you and your passengers when the at-fault driver carries no insurance or flees the scene (hit-and-run).

Unlike states where UM is merely "offered" at the minimum, South Carolina builds it in as a mandatory coverage that rises with your liability limits. If a client raises liability to 100/300, their UM moves up to match.

Underinsured motorist coverage (optional but must be offered)

Underinsured Motorist (UIM) handles the situation where the at-fault driver has insurance, just not enough to cover your injuries.

• South Carolina requires insurers to offer UIM up to the liability limits, but the insured may buy or decline it—UIM is optional.
• UIM pays the difference between the other driver's lower BI limit and your UIM limit—so a client with UIM is protected even against a bare-minimum at-fault driver.

The recurring theme: UM is mandatory and tracks the liability limits, while UIM must be offered but is optional.

The named-driver exclusion

South Carolina permits a named-driver exclusion, allowing the policy to exclude a specific household driver from coverage. This can keep a policy affordable when a high-risk household member is covered elsewhere. Know that South Carolina allows it.

No PIP, plus the optional coverages

• South Carolina does not require PIP / no-fault coverage. Medical Payments (Med Pay) is available as an optional first-party coverage that pays medical and funeral costs regardless of fault.
• Collision and Comprehensive (Other Than Collision) are optional, though a lender usually requires them on a financed vehicle. Remember that damage from hitting an animal is Comprehensive, not Collision. Towing/labor and rental reimbursement are optional add-ons.

Cancellation and nonrenewal notice

South Carolina limits how and when an insurer can end a personal auto policy, generally requiring advance written notice before cancellation or nonrenewal. A shorter notice is typically allowed for nonpayment of premium, and a longer notice for ordinary cancellation/nonrenewal—verify the current periods. After a covered loss the insured's duties include promptly notifying the insurer and cooperating in the investigation. Mid-term cancellation refunds the unearned premium.

Required vs. optional coverages in South Carolina

Key South Carolina numbers to memorize

Common exam traps

• South Carolina is at-fault, not no-fault—there is no mandatory PIP here.
• UM is mandatory at limits EQUAL to the liability limits, not just the 25/50 minimum.
• UIM must be offered but is optional—don't call it mandatory.
• 25/50/25—the property-damage figure is $25k.
• Modified comparative negligence: more than 50% at fault means no recovery (the 51% bar—watch the exact wording).
• South Carolina allows a named-driver exclusion.
• Hitting an animal is Comprehensive, not Collision; liability defense costs are paid in addition to the limit.

Quick recap

• The PAP keeps its national Parts A–F structure; South Carolina changes the limits and legal context.
• South Carolina is a tort/at-fault state using modified comparative negligence, where a claimant more than 50% at fault recovers nothing.
• Financial-responsibility minimums are 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 permits 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.