The Property Casualty Insurers Association of America is asking Gov. Mark Sanford to veto South Carolina legislation that would force thousands of drivers to pay more for automobile insurance by increasing the minimum liability limits.
Currently South Carolina requires drivers to purchase a minimum amount of bodily injury and property damage liability insurance. House Bill 4622 would increase the bodily injury liability limits from $15,000 to $25,000 for one person and from $30,000 to $50,000 for all persons injured in an accident. The property damage limits would also be increased from $10,000 to $25,000.
“PCI is opposed to this legislation because it will increase the cost of auto insurance for drivers who now carry minimum limits,” Robert Herlong, PCI vice president and regional manager said. “In many cases, this bill will hit hardest those who least can afford an increase. In some cases there may be double digit rate increases. Based on one large insurer’s estimate, premiums could increase in Charleston, Greenville and Richland counties by as much as 13 percent for liability and uninsured and underinsured motorists coverages.
“If a motorist wants additional coverage, he or she already has the option to purchase more protection. This legislation represents a return to micro-management and government interference that is associated with an anti-business environment for insurers,” Herlong said.
In addition, PCI is concerned that this legislation would have the unintended consequence of increasing the number of uninsured drivers. South Carolina has invested a lot of time and money in recent years to address the problem of uninsured motorists, which is among the highest in the nation. PCI suggests this legislation would be a step backwards in this fight.
“We hope that Gov. Sanford will see that this is just another tactic by trial attorneys to spin straw into gold and get deeper into the pockets of insurance companies,” Herlong said. “These increased awards result in all policyholders paying higher rates. This would be contrary to the governor’s history of supporting and enacting tort reform during his administration.”
Source: Property Casualty Insurers Association of America
Topics Auto Legislation South Carolina
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