S.C. Reports Fewer Uninsured Drivers

Fewer uninsured motorists are driving South Carolina’s roads.

State officials credit a crackdown by the state Department of Motor Vehicles. In January, the agency began using a new database of drivers who let their insurance lapse to send letters threatening to suspend their licenses.

It is part of the state’s initiative to make sure drivers are covered if they crash and need to pay for repairs.

If the number of uninsured drivers keeps dropping, insurers should cut rates to reflect the reduced risk of being hit by an uninsured driver, said Eleanor Kitzman, director of the state Insurance Department.

“People who were insured were paying to protect people they hit and themselves,” she said. “We were paying a lot of claims for people who were uninsured.”

In South Carolina, auto insurance is mandatory. In a crash, the driver at fault is responsible for paying all repairs, but the system doesn’t work if that driver isn’t covered.

Kitzman said the database, funded through fines paid by uninsured drivers, is making a difference.

Under the program, insurers must immediately report the names of drivers who have canceled policies. Drivers have 20 days to get new insurance before they incur fines and have their vehicle registrations and driver’s licenses suspended.

While the number of wrecks in South Carolina has remained constant at about 100,000 accidents yearly, the percentage of uninsured drivers in crashes fell to 32 percent in 2005, down from 41 percent two years ago.

The number of citations written to uninsured drivers also is down. State officials processed 6,059 convictions for driving without insurance during the first half of this year, down 7 percent from the first six months of 2003.

The hope is that all South Carolina drivers eventually will see lower insurance rates.

However, the risk of being hit by an uninsured driver is just one of many factors insurance companies use to set rates. Other factors include customers’ driving record, their commute length and where they park their car at night, said industry spokeswoman Allison Love.

“Each insurance company will base its rates on its experience with its customers,” she said.

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