AIA Urges S.C. House to Vote ‘No’ on Auto Legislation

The American Insurance Association has warned South Carolina drivers that higher auto insurance premiums could result if the South Carolina Legislature approves a bill raising the minimum required auto insurance limits. A vote is expected as early as next Tuesday.

“The South Carolina House of Representatives will vote next week on legislation that includes a provision raising the minimum limits of auto insurance liability coverage that drivers are required to carry by law,” Raymond G. Farmer, AIA Southeast Region assistant vice president, said. “If approved, this will be a direct hit to the wallet for drivers who have chosen the minimum limits, forcing them to purchase more insurance coverage and, as a result, pay more for their auto insurance coverage. AIA is urging legislators to vote ‘no’ on the bill.”

H. 4622, which was intended to rectify a court decision involving the form used by insurers when offering optional insurance coverages, was hijacked by the trial bar late this week when they saw that the bill was nearing passage. Their legislative supporters in the Senate offered, and gained approval for, an amendment to increase the minimum limits from 15/30/10 to 25/50/25.*

“An increase in South Carolina’s minimum bodily injury and property damage liability limits is not legitimately warranted, based on the state’s auto insurance losses,” said Farmer. “This is simply a politically motivated attempt by the trial bar that will end up hurting those consumers who can least afford it.”

*The first two numbers refer to bodily injury liability, and the third number to property liability. For example, 25/50/25 means coverage up to $50,000 for all persons injured in an accident, subject to a limit of $25,000 for one individual, and $25,000 coverage for property damage.

Source: American Insurance Association