If you have ever been rear-ended by a driver with no insurance, or hit by someone whose policy limits were too low to cover your medical bills, you have probably heard the terms “UM” and “UIM” thrown around by an insurance adjuster. These two coverages are some of the most important, and most misunderstood, parts of any South Carolina auto policy. Understanding what they do, and whether you can combine, or “stack,” multiple policies to get more compensation, can make a real difference after an accident with an uninsured driver.
What Is Uninsured Motorist (UM) Coverage in South Carolina?
Uninsured motorist coverage, or UM, protects you when the at-fault driver has no liability insurance at all. South Carolina is one of the relatively few states that makes UM coverage mandatory. Under S.C. Code § 38-77-150, every auto insurance policy issued in the state must include UM coverage, and you cannot legally drive without it.
The minimum UM limits match the state’s minimum liability limits under S.C. Code § 38-77-140, which are 25/50/25. That means $25,000 in bodily injury coverage per person, $50,000 per accident, and $25,000 in property damage coverage. If you are hit by an uninsured driver, or the victim of a hit-and-run, your own UM policy is what pays for your medical bills, lost wages, and other losses, up to your policy limits.
What Is Underinsured Motorist (UIM) Coverage in South Carolina?
Underinsured motorist coverage, or UIM, is a little bit different. It applies when the at-fault driver does have insurance, but their policy limits are not enough to cover the full extent of your damages. Unlike UM coverage, UIM coverage is optional in South Carolina. Insurance carriers are required to offer it under S.C. Code § 38-77-160, but you can decline it in writing.
Given how many South Carolina drivers carry only the state minimum 25/50/25 policy, and how quickly medical bills can climb after a serious wreck, declining UIM coverage can leave a significant gap between an injured person’s damages and the amount of compensation they are able to recover. A single hospital stay after a highway collision on I-85 or I-385 can easily exceed $50,000, and if the at-fault driver only carries the minimum, there may not be enough available to make you whole.
UM vs. UIM Coverage for Greenville Drivers, at a Glance
The short version as to the differences is this: UM applies when the other driver has no insurance, and UIM applies when the other driver has some insurance, but not enough of it. Both types of coverage are meant to fill gaps left by drivers who are not properly insured or who simply don’t carry enough coverage to pay for serious injuries. Both types of coverage are tied to your own auto policy, not the at-fault driver’s, which is why understanding your own coverage before an accident happens is so important.
Can You Stack UM/UIM Coverage in South Carolina?
Stacking allows you to combine UM or UIM limits from more than one vehicle or policy to increase the total compensation available to you. South Carolina law permits stacking in certain situations, but the rules depend heavily on whether you qualify as a “Class I insured” or a “Class II insured” under S.C. Code § 38-77-160.
A Class I insured is generally the named insured, their spouse, or other resident relatives, when one of their own vehicles was involved in the accident. Class I insureds are allowed to stack UM or UIM coverage from multiple vehicles listed on the same policy, or from multiple household policies, up to the limits carried on the vehicle involved in the crash. For example, if you were driving a car with $25,000 in UIM coverage, and a second vehicle in your household carries $50,000 in UIM coverage, you may be able to stack up to $50,000 total ($25,000 of UIM from both vehicles), since your available stacked coverage generally can’t exceed the highest single-vehicle limit on the policy involved.
A Class II insured, on the other hand, is typically someone who was not occupying one of their own insured vehicles at the time of the accident, such as a passenger in someone else’s car or a pedestrian. Class II insureds generally cannot stack coverage and are limited to the UM or UIM benefits available on the vehicle they were occupying at the time of the crash, plus one vehicle at home.
You also can’t stack UM and UIM together in the same claim. If the at-fault driver had no insurance, you’re working within the UM framework; if they had some insurance but not enough, you’re working within the UIM framework. The only exception is where a person is injured in a collision caused by an uninsured driver and another driver who is underinsured.
How Insurance Companies Try to Deny or Limit Stacked Claims
Insurance companies do not make it easy to stack coverage, even when the law allows it. Adjusters may argue that you don’t qualify as a Class I insured, that a rejection of stacked coverage buried in your policy paperwork is valid, or that a “meaningful offer” of UIM coverage was properly made and declined years ago. South Carolina courts have addressed many of these disputes, and the outcome often depends on the specific policy language and how it was presented to you at purchase.
Insurers may also argue that a vehicle wasn’t “involved” in the accident in the way the statute requires, or that you don’t meet the household relationship requirements for Class I status. These arguments can be technical, and they’re often raised because most policyholders don’t know enough about the stacking rules to push back.
How Our Greenville Car Accident Lawyers Can Help
Our car accident attorneys at the office of David R. Price, Jr., P.A. regularly deal with UM and UIM claims for clients throughout Greenville and the surrounding Upstate. We review every applicable insurance policy for every vehicle in your household, not just the one on the car you were driving, to identify every source of coverage that may apply. We also handle the notice and procedural requirements that come with a UIM claim, including serving the underinsured motorist carrier with the pleadings from the underlying liability case, which is required before you can recover UIM benefits.
If an insurance company is trying to limit your recovery by misapplying the stacking rules, or by claiming you don’t qualify for coverage you’re actually entitled to, we can push back on your behalf.
Frequently Asked Questions
Do I have to carry UM coverage in South Carolina?
Yes. UM coverage is mandatory on every auto policy issued in the state, at least up to the mandatory minimum of 25/50/25, pursuant to S.C. Code § 38-77-150. Additionally drivers are given the option to purchase UM coverage at higher limits, up to the amount of liability coverage they carry on that vehicle.
Is UIM coverage required too?
No. UIM is optional, although insurers must offer it. Many drivers decline it without realizing what they’re giving up. Fortunately, in some situations insurers must reform a policy to include UIM coverage if they failed to make a “meaningful offer” at the time of purchase.
How do I know if I’m a Class I or Class II insured?
It generally depends on your relationship to the policy and whether one of your own household vehicles was involved in the accident. An attorney can review your policy and the facts of your crash to sort this out.
What if the at-fault driver fled the scene?
Hit-and-run accidents are typically treated as uninsured motorist claims, since there’s no identified at-fault insurance to pursue.
If you were hurt by an uninsured or underinsured driver anywhere in the Upstate of South Carolina, including Greenville zip codes like 29601, 29605, 29607, 29609, or 29615, or other places like Spartanburg, Laurens, Anderson, Pickens or Oconee Counties, our car accident attorneys at David R. Price, Jr., P.A. are ready to review your policies and help you understand what coverage is actually available to you. Contact us today for a free consultation.