Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When the at-fault driver’s policy limits in South Carolina are exhausted, you can still seek recovery for loss-of-use or rental car expenses through other coverages or legal options. Below are the primary avenues and the relevant South Carolina statutes:
1. Underinsured Motorist Property Damage (UMPD) Coverage
South Carolina law requires insurers to offer UMPD alongside uninsured motorist coverage. If you purchased UMPD, you may claim the difference between the at-fault driver’s paid limits and your actual loss. UMPD covers damage to your vehicle and includes loss-of-use or reasonable rental expenses.
• Statute: S.C. Code Ann. § 38-77-160 (link)
2. Collision Coverage with Rental Reimbursement
If you carry collision coverage on your own auto policy, you can file a first-party claim for repair costs. Many collision policies include or offer optional rental reimbursement. This “rental reimbursement coverage” pays for a substitute vehicle while yours is being repaired.
• Statute: S.C. Code Ann. § 38-77-250 (link)
3. Loss-of-Use Coverage Offer
By statute, insurers must offer loss-of-use coverage as an optional add-on to a standard auto policy. This optional coverage reimburses you for the fair rental value of a comparable vehicle during repair or replacement.
• Statute: S.C. Code Ann. § 38-77-250 (link)
4. Direct Action or Lawsuit Against the At-Fault Driver
If the insurer has paid the full policy limits and you still face unreimbursed losses, you can sue the at-fault driver personally for the remaining amount. In South Carolina, the statute of limitations for property damage claims is three years from the date of the accident.
• Statute of Limitations: S.C. Code Ann. § 15-3-530 (link)
Helpful Hints
- Review your own policy declarations to confirm if you purchased UMPD, rental reimbursement, or loss-of-use coverages.
- Keep all invoices and receipts for rental vehicles, ride-shares, taxis, or alternative transportation.
- Notify your insurer promptly and provide written proof of your rental expenses.
- Check the at-fault driver’s policy limits early to determine whether you need to tap into your own coverages.
- Consider consulting a licensed South Carolina attorney to explore direct recovery against the driver and to preserve important deadlines.