What Happens When You're in a Car Accident Without Insurance
You are liable for all damage and injuries, and South Carolina law requires you to pay
If you caused a car accident in South Carolina and you do not have insurance, you are responsible for paying all medical bills, vehicle repairs, lost wages, and other costs the other driver or passengers incurred. South Carolina is a fault state, meaning the person who caused the accident pays for the damage. The state also requires all drivers to carry liability insurance or prove they can pay for accidents out of pocket — driving without it is illegal.
The other driver can sue you in civil court to recover their costs. If you cannot pay, they can place a lien on your vehicle, garnish your wages, or pursue other collection methods. You also face criminal penalties: driving without insurance in South Carolina can result in a fine, license suspension, and a mark on your driving record that affects your ability to get insurance later.
Your options now depend on whether the accident has already been reported to police, whether the other driver is pursuing a claim, and whether you have any assets or income to protect.
Key Takeaways
- South Carolina law makes you financially responsible for all damage you caused, whether or not you have insurance.
- The other driver can sue you in small claims court (up to $7,500) or civil court (for larger amounts) to recover their costs.
- If you cannot pay a judgment, the other driver can garnish your wages, place a lien on your vehicle, or pursue collection through the court system.
- You face separate criminal penalties for driving uninsured, including fines and license suspension, regardless of whether you caused the accident.
- Reporting the accident yourself to police and being honest about your lack of insurance can prevent additional charges for hit-and-run or failure to report.
What the other driver can do to recover money from you
The other driver has several paths to recover their costs. If the damage is under $7,500, they can file a claim in small claims court without hiring a lawyer. If the damage is higher, they file in civil court and can hire an attorney. Either way, they must prove you caused the accident — police reports, witness statements, photos, and medical records all help their case.
If they win a judgment against you, the court issues an order requiring you to pay. If you do not pay voluntarily, they can ask the court to garnish your wages (take money directly from your paycheck), place a lien on your vehicle (preventing you from selling it without paying them first), or freeze your bank account. Collection can continue for years; in South Carolina, a judgment is valid for 20 years.
If you were hit by an uninsured driver, your own insurance (if you have it) may cover your costs through your uninsured motorist coverage, though you will still owe your deductible. If you have no insurance either, you and the other driver are both out of pocket unless one of you sues the other.
Criminal penalties for driving without insurance
Driving without insurance in South Carolina is a separate violation from causing an accident. The first offense carries a fine of $25 to $500, a license suspension of 30 days to six months, and points on your driving record. A second offense within three years increases the fine to $100 to $1,000 and suspension to 60 days to one year. A third offense can result in up to 30 days in jail.
These penalties apply whether or not you caused an accident. If you were in an accident and did not have insurance, you face both the civil liability (paying for damage) and the criminal penalties (fines and license suspension) at the same time.
If you left the scene of the accident without reporting it, you also face hit-and-run charges, which carry steeper penalties including potential jail time and a longer license suspension. Reporting the accident yourself — even without insurance — is always better than being found out later.
What to do immediately after the accident
If you are still at the scene or have not yet reported the accident, call the police non-emergency line and report it yourself. Explain that you do not have insurance. This prevents the other driver from filing a hit-and-run complaint and shows the court that you were honest about the circumstances. Get the police report number.
Exchange contact information and insurance details with the other driver (even though you have no insurance, they need to know this). Take photos of all vehicle damage, the accident scene, and any visible injuries. Get the names and phone numbers of any witnesses. Do not admit fault or apologize in a way that sounds like a confession — stick to the facts of what happened.
If the other driver or their insurance company contacts you, do not ignore them. If you cannot pay, say so. Do not make promises you cannot keep. If they threaten legal action, take it seriously — the threat is usually real.
If the other driver sues you
If you receive a summons or court papers, do not ignore them. Ignoring a lawsuit results in a default judgment against you, meaning the court sides with the other driver automatically and you lose your chance to tell your side of the story.
If the case is in small claims court, you can represent yourself. Bring the police report, photos, witness contact information, and any written communication with the other driver. Explain what happened and why you believe you were not at fault, or if you were at fault, present any evidence that their damages are lower than they claim.
If the case is in civil court, consider consulting with a lawyer, especially if the damages are large. Many lawyers work on contingency (they take a percentage of what you owe rather than an upfront fee), though this is more common when the lawyer represents the person suing you. You may also find a lawyer who offers a free initial consultation to discuss your options.
Getting insurance after an accident
After an uninsured accident, getting insurance will be more expensive. Insurance companies see you as higher risk because you drove without coverage and because you were in an accident. You will likely be placed in the high-risk pool and quoted higher premiums.
South Carolina requires you to file an SR-22 form with the Department of Motor Vehicles if you were driving uninsured. This form proves to the state that you now have insurance. Your insurance company files it on your behalf when you purchase a policy. You must maintain continuous coverage for three years or your license will be suspended again.
Shop around with multiple insurers — rates vary widely, and some companies specialize in high-risk drivers. Online quotes are free and take 10 minutes. The longer you go without another accident or violation, the lower your rates will drop.
If you cannot afford to pay a judgment
If a court orders you to pay and you genuinely cannot, you have limited options. You can ask the court for a payment plan, spreading the debt over months or years. The court may grant this if you show proof of income and expenses.
Some debts are protected from garnishment — for example, Social Security income and certain retirement accounts cannot be touched. However, regular wages can be garnished, and the other driver can continue collection efforts for 20 years. Bankruptcy is a last resort and does not erase all debts, but it can pause collection and give you a fresh start in some cases. Consult a bankruptcy attorney if you are considering this route.
The reality is that if you caused significant damage and have no insurance or savings, you may be paying this debt for years. This is why insurance is required by law — it protects both you and the other driver from financial ruin.
Frequently Asked Questions
Can I go to jail for not having insurance?
You can go to jail for a third uninsured driving offense within three years, but not for a first or second offense. You can also face jail time if you caused an accident, did not have insurance, and left the scene without reporting it (hit-and-run). Simply being uninsured is a fine and license suspension, not jail.
What if the other driver was also uninsured?
If both drivers are uninsured, you are still liable for the damage you caused. The other driver can still sue you. Your lack of insurance does not cancel out your responsibility. If you were hit by an uninsured driver and you have no insurance either, you both absorb your own costs unless one of you sues the other and wins.
Will my license be suspended immediately?
Your license will be suspended after you are convicted of driving without insurance, not immediately after the accident. You will receive a court date, be convicted or found guilty, and then the suspension takes effect. If you are convicted a second time within three years, the suspension is longer. Report the accident yourself to avoid additional charges that could speed up this process.
Can I get the judgment removed from my record later?
A civil judgment stays on your record for 20 years in South Carolina. You cannot remove it, but you can satisfy it by paying what you owe. Once paid, it will show as satisfied on your record, which is better than an unpaid judgment when you apply for credit or loans in the future.
What if I cannot find the other driver?
If you hit a parked car or another vehicle and cannot locate the owner, you are still required to leave a note with your contact information and report the accident to police. Leaving the scene without doing this is hit-and-run. If you report it yourself, you face the uninsured driving penalty but not the hit-and-run charge. The other driver can still track you down through the police report and sue you later.