Navigating Commercial Auto Insurance Requirements in South Carolina

Operating a business in South Carolina that uses commercial vehicles? Then you need a commercial auto insurance policy that meets state requirements. This article explains everything South Carolina companies need to know about getting properly insured, including required coverage, costs, discounts, and more.

Who Needs Commercial Auto Insurance in South Carolina?

Any business that registers and operates a vehicle in South Carolina for commercial purposes must carry a commercial auto insurance policy. This includes:

• Companies with company-owned vehicles driven by employees
• Independent contractors using personal vehicles for commercial activities
• Businesses with leased or rented vehicles used for work
• Rideshare drivers for Uber, Lyft, etc.
• Delivery drivers and couriers
• Transportation and freight companies
• Food trucks and street vendors
• Contractors and tradespeople

You cannot rely solely on a personal auto insurance policy, which only covers occasional and incidental business use. Driving for work-related purposes requires commercial coverage.

South Carolina Commercial Auto Insurance Requirements

South Carolina is an “at-fault” state, meaning the driver responsible for an accident can be held liable. The state mandates all commercial auto policies carry the following minimum liability limits:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage

You must also carry uninsured motorist (UM) coverage at these minimum limits.

Higher liability limits are recommended for sufficient protection. Many experts advise:

• $500,000 to $1,000,000 combined single limit

And if you have employees, you also need workers’ compensation insurance. Failing to carry valid commercial auto insurance can lead to fines, license/registration suspension, and other penalties.

Costs of Commercial Auto Insurance in SC

The average South Carolina business pays around $150 per month for commercial auto coverage. However, your exact premium is based on:

• Your industry risk
• Number of vehicles
• Types of vehicles
• Radius of travel
• Years in business
• Driving records
• Claim history
• Coverage limits and deductibles

Getting rate quotes from multiple insurers is the best way to find an affordable policy for your business.

Key Factors That Affect Your Commercial Auto Rates

The main factors that influence your SC commercial auto insurance premiums include:

Industry Type: Higher-risk industries like construction pay more than professional services.

Vehicle Type: Insuring semi-trucks and limos costs more than vans or sedans.

Location: Urban areas like Charleston may have higher premiums than rural towns.

Years in Business: New businesses generally pay more than established companies.

Mileage: Local driving is less risky than long hauls out of state.

Driver Safety: Good driving records get lower rates than accidents/violations.

Deductibles: Choosing higher deductibles reduces your premiums.

How To Get the Cheapest SC Commercial Auto Insurance

Follow these tips to get the lowest commercial auto insurance rates in South Carolina:

• Compare quotes from multiple top insurers
• Take advantage of all available discounts
• Ask about safe driver discounts
• Use telematics programs to prove safe driving
• Raise your deductible to at least $1,000
• Bundle commercial auto with other policies
• Maintain good driving records
• Implement strong driver safety programs
• Keep vehicles well-maintained
• Limit high-risk driving exposure

Getting quotes from agents and online makes it easy to find the best deal.

Popular Commercial Auto Discounts in South Carolina

Ask your insurer about discounts to reduce your SC commercial auto premiums, such as:

• Multi-vehicle
• Multi-policy
• Paid-in-full
• Safe driver
• Defensive driver training
• Low mileage
• Good student
• New vehicle
• Anti-theft devices
• Driver safety training
• Maintenance schedules
• Garaging vehicles

Taking defensive driving courses is a simple way for employees to cut costs.

What Coverages to Consider Beyond Minimums

While liability insurance is mandatory, additional valuable coverages to consider include:

Comprehensive: Covers damage from weather, fire, floods, theft, vandalism.

Collision: Pays to repair/replace your vehicle after an accident.

Uninsured/Underinsured Motorist: Protects against injuries from an uninsured or insufficiently insured driver.

Medical Payments: Covers medical bills for drivers/passengers injured in an accident.

Rental Reimbursement: Provides funds to rent a replacement vehicle during repairs.

Roadside Assistance: Covers towing, lockouts, flat tire changes, and battery jumps.

Trailer Interchange: Covers detachable trailers you don’t own when in your possession.

Review risks with an agent to build a customized and cost-effective commercial policy.

Penalties for Not Having Commercial Auto Insurance in SC

Consequences for lapsed or insufficient commercial auto insurance include:

• Fines from $100 to $200
• $550 uninsured motorist penalty fee
• License/registration suspension
• Vehicle impoundment
• Jail time up to 30 days

Maintaining continuous coverage is crucial to avoid legal and financial headaches.

Purchasing Commercial Auto Insurance in South Carolina

Work with a reputable insurer like Progressive, Travelers, The Hartford, or Allstate to buy a tailored SC commercial auto policy:

• Get quotes online or talk to local agents.
• Review recommendation for limits and coverages.
• Provide driver and vehicle information.
• Select desired coverages, limits, and deductibles.
• Add any relevant discounts.
• Pay premium to activate coverage.
• Obtain proof of insurance documents.

Consult agents to ensure complete protection for your business vehicles and drivers.

Can Employees Use Personal Vehicles for Work?

Employees can use their personal vehicles for work purposes, but this scenario requires hired/non-owned auto (HNOA) coverage for protection.

HNOA provides liability insurance when:

• Employees drive their own cars for work-related tasks.
• Your business uses temporary rented or borrowed vehicles.

However, HNOA will not cover damage to employees’ personal vehicles. For that, employees need rideshare insurance or to upgrade their personal policy.

Final Tips for SC Commercial Auto Insurance

Don’t take chances with inadequate or non-compliant commercial auto insurance. Follow state regulations, shop around for the best rates, and consult agents to protect your business vehicles and livelihood.

Major insurers like Progressive, GEICO, Travelers, and State Farm offer commercial auto quotes online while local agencies provide expert guidance. Properly insuring your fleet is simple and affordable with the right partner.