What Happens to Your Car Insurance After an Accident in South Carolina

Your insurance company will likely raise your rates after an accident, even if you were not at fault

After you have an accident in South Carolina, your insurance company will investigate the claim and then decide whether to cover the damage. If they do cover it, expect your rates to go up at your next renewal — this is called an accident surcharge or accident rating. The increase depends on the severity of the accident, whether you were found at fault, and your insurance company's own pricing rules. Some companies raise rates more than others for the same accident.

You do not have to accept a rate increase without question. You can shop for new insurance, ask your current company about discounts that might offset the increase, or look into accident forgiveness programs if your policy includes one. South Carolina does not cap how much insurers can raise your rates after an accident, so the amount varies widely.

The accident will stay on your driving record for three to five years in South Carolina, which means multiple insurers will see it when you apply. Even if you switch companies, a new insurer will likely charge you more than they would have before the accident.

Key Takeaways

• Report the accident to your insurance company as soon as possible, even if you think the damage is minor or you were not at fault.
• Your rates will probably increase at renewal, and the amount depends on fault information, accident severity, and your insurer's pricing — not on a state formula.
• South Carolina does not require insurers to offer accident forgiveness, but some companies do, and you should ask whether your policy includes it.
• The accident appears on your driving record for three to five years, so switching insurers will not erase the rate increase unless you find a company that weights accidents less heavily.
• You can reduce the financial impact by bundling policies, asking about safety discounts, or taking a defensive driving course if your insurer offers a discount for it.

How to report an accident to your insurance company

Call your insurance company's claims line as soon as safely possible after the accident. Have your policy number ready, and be prepared to describe what happened, where it happened, the date and time, and the other driver's information if there was one. Do not admit fault or apologize — stick to the facts of what occurred. Your insurer will assign a claims adjuster who will contact you to schedule an inspection of your vehicle.

If the accident involved another vehicle, get the other driver's name, phone number, address, driver's license number, license plate number, and insurance information. If there were witnesses, get their contact information too. Take photos of the damage to both vehicles, the accident scene, and any road conditions that might be relevant. If police responded, get the report number and the officer's name.

Keep all documents related to the accident — the police report, photos, witness statements, repair estimates, and any correspondence with your insurance company. You will need these if there is a dispute about fault or coverage later.

What happens during the claims investigation

Your insurance company's adjuster will inspect your vehicle, review the police report if one exists, and may contact the other driver's insurance company. In South Carolina, fault is determined by comparing what each driver did against the state's negligence laws. If you were partially at fault, your rate increase will be larger than if you were found not at fault. If you were found completely at fault, the increase will be the largest.

The investigation typically takes one to three weeks. During this time, you can still drive your vehicle unless the damage makes it unsafe. Once the adjuster has finished, your insurance company will send you a decision letter explaining whether they are covering the claim, how much they will pay, and what your out-of-pocket costs are (your deductible).

If you disagree with the fault information or the damage estimate, you can request a review or hire your own appraiser. Some insurance policies allow you to dispute the decision through arbitration, which is faster than going to court.

Understanding accident surcharges and rate increases

An accident surcharge is a percentage increase added to your base rate. In South Carolina, there is no legal limit on how much an insurer can raise your rates after an accident. A minor accident with no injuries might result in a 10 to 15 percent increase, while a serious accident with injuries or significant damage could result in a 25 to 40 percent increase or more. The exact amount depends entirely on your insurance company's pricing model.

The surcharge applies at your next renewal date, not immediately. If your policy renews in three months, you will pay the increased rate starting then. If it renews in a year, you will have that year at your current rate before the increase takes effect. This is one reason to check your renewal date after an accident — you may have time to shop for better rates before the increase kicks in.

Some insurance companies offer accident forgiveness, which means they will not raise your rates after your first accident (or sometimes your first accident in a certain number of years). This is not required by South Carolina law, so not all companies offer it. If your policy includes it, the accident will still appear on your driving record, but your rates will not increase. Ask your agent whether your policy has this feature.

How to reduce your rates after an accident

The most direct way to lower your rates is to shop for new insurance. Different companies price accidents differently, and a company that sees you as a lower risk might charge you less than your current insurer, even with the accident on your record. Get quotes from at least three companies before deciding to switch. Some insurers specialize in drivers with accidents and may offer better rates than mainstream companies.

If you stay with your current company, ask about discounts you may not be using. Common discounts include bundling your car and home insurance, paying your premium in full rather than monthly, maintaining a good driving record (no new violations), taking a defensive driving course, and installing safety features like anti-theft devices. Some companies also offer usage-based insurance programs where you install an app that monitors your driving, and safe driving can earn you a discount.

A defensive driving course can reduce your rates by 5 to 10 percent with some insurers, though the discount varies. South Carolina recognizes courses approved by the National Safety Council and the American Automobile Association. The course usually takes four to eight hours and costs between $20 and $50. Ask your insurance company whether they offer a discount before you enroll, because not all companies do.

How long the accident affects your insurance

The accident will appear on your driving record in South Carolina for three to five years, depending on the severity and whether you were convicted of a traffic violation related to it. During this time, any insurance company you apply to will see it. Even after it falls off your driving record, some insurers keep their own records and may still consider it when pricing your policy.

The surcharge itself typically lasts three to five years as well, though some companies remove it sooner if you have no additional accidents or violations. After three years of clean driving, you may be able to request that your current insurer remove the surcharge early, though they are not required to do so. Switching to a new insurer after three years sometimes results in lower rates because the new company may weight the older accident less heavily.

If you were at fault in the accident, the impact on your rates will be longer and steeper than if you were not at fault. A not-at-fault accident may result in a smaller increase that disappears faster, while an at-fault accident can affect your rates for the full three to five years.

What to do if your claim is denied

If your insurance company denies your claim, they must send you a written explanation of why. Common reasons for denial include that the damage was not covered under your policy (for example, you do not have collision coverage), the accident happened while you were using the vehicle for commercial purposes, or the policy had lapsed. Read the denial letter carefully to understand the specific reason.

If you believe the denial is wrong, you can request a review by submitting a written appeal to your insurance company. Include any new information or documents that support your claim. If the company still denies it, you can file a complaint with the South Carolina Department of Insurance, which will investigate whether the company followed state law. You can also consult with an attorney if the claim amount is large enough to justify the cost.

Frequently Asked Questions

Will my rates go up if the other driver was at fault?

Not necessarily. If the other driver is found at fault and their insurance pays for the damage, your rates should not increase. However, if there is a dispute about fault or the other driver is uninsured, your own insurance may cover the damage and then your rates could increase. Ask your adjuster to clarify the fault information in writing.

Can I get my accident removed from my driving record?

No. Accidents stay on your South Carolina driving record for three to five years and cannot be removed early. After that time, they fall off automatically. If the accident involved a traffic violation you were convicted of, the violation may stay longer than the accident itself.

What if I do not have collision coverage?

If you do not have collision coverage, your insurance company will not pay for damage to your own vehicle, even if the accident was the other driver's fault. You would have to pursue a claim against the other driver's insurance directly, or sue them in small claims court if the damage is minor. This is why collision coverage is important if you have a loan or lease on your vehicle.

How much will my rates increase?

South Carolina does not set a standard amount, so increases vary by company and accident severity. A minor accident might raise rates 10 to 15 percent, while a serious one could raise them 25 to 40 percent or more. The only way to know is to contact your insurer or get quotes from other companies.

Should I file a claim or pay out of pocket?

If the damage is close to your deductible amount, paying out of pocket might be cheaper than filing a claim and paying the deductible plus accepting the rate increase. For example, if your deductible is $500 and the damage is $600, filing a claim costs you $500 plus future rate increases. If the damage is significantly more than your deductible, filing a claim is usually the better choice.