Are you tired of watching your car insurance premiums skyrocket while insurance companies report record profits? You're not alone. Across South Carolina, hardworking families face an undeniable financial strain as insurance costs continue to climb, even while these same companies thrive in the marketplace.
The truth is simple: South Carolina drivers deserve better protection from insurance company exploitation.
The Real Story Behind Rising Insurance Costs in South Carolina
While insurance companies blame lawsuits, road conditions, and "litigation abuse" for premium increases, the data tells a different story. According to recent National Association of Insurance Commissioners (NAIC) reports, auto insurance company profitability has rebounded sharply post-pandemic, with both investment income and underwriting profits climbing significantly.
Yet South Carolinians continue paying more while traveling the same dangerous, congested roads.
This isn't just unfair—it's a breach of public trust. Since state law mandates that every driver carry insurance, our government has a corresponding duty to ensure billion-dollar corporations aren't exploiting citizens.
7 Critical Reforms South Carolina Needs Now
1. Strengthen Oversight of Insurance Rate Increases
The Problem: Rate hikes often get rubber-stamped with minimal scrutiny.
The Solution: The South Carolina Department of Insurance must take a harder look at justifications for premium increases. Insurance companies shouldn't boost rates while simultaneously reporting high profits to shareholders.
What We Need:
- Mandatory transparency in rate filings
- Full disclosure of investment income and executive compensation
- Independent review of all rate increase requests
2. Create Consumer Rebate Programs Tied to Investment Profits
South Carolinians are legally required to buy insurance, creating a captive market that guarantees steady premium income. In return, insurers invest those premiums and earn significant market profits.
Fair is fair—consumers should share in that success.
Our General Assembly should pass legislation requiring insurance companies to return a portion of investment profits to policyholders annually through rebates or premium reductions. A 10% rebate on investment income, distributed proportionally, could provide real relief without impacting insurer solvency.
3. Crack Down on Fraud and Enforce DUI Laws More Aggressively
Insurance companies routinely cite fraud and impaired driving as cost drivers. If that's true, then state government—not insurers—should address these issues through meaningful policy.
We need:
- Increased DUI enforcement and sobriety checkpoints
- Better tracking of repeat offenders
- Adequately funded law enforcement for proactive traffic safety
- Modern tools to detect staged accidents, identity fraud, and false medical claims
These solutions target real problems, not convenient excuses for price gouging.
4. Reform the Court System to Promote Speed and Fairness
Delays in our civil justice system create unnecessary costs for everyone. When claims drag on, both plaintiffs and defendants spend more time and money resolving disputes. Insurance companies use these delays as weapons to pressure injured people into accepting less than they deserve.
South Carolina should prioritize:
- Fully staffing our courts
- Improving digital case management systems
- Implementing case deadlines that promote resolution
- Increasing trial judge availability statewide
5. Improve Infrastructure to Reduce Accidents and Claims
The equation is simple: unsafe roads lead to crashes, crashes lead to claims, and claims (insurers say) lead to higher premiums. If that's true, then investing in infrastructure isn't just about public safety—it's about lowering costs.
A robust infrastructure program should prioritize:
- Better lighting and signage
- Pavement repairs and resurfacing
- Roundabouts and traffic-calming measures in high-risk zones
- Ongoing crash data analysis to target improvements where needed most
6. Ensure Equal Access to Justice for Consumers
Some lawmakers, influenced by big insurance lobbyists, are pushing legislation to make it harder for citizens to sue negligent drivers, trucking companies, or corporations whose recklessness causes harm.
These tort reform proposals are attacks on consumer rights.
We must fight back against any effort to:
- Cap damages unfairly
- Limit jury access
- Insulate insurers from bad faith liability
Every South Carolinian deserves their day in court and full accountability when wronged.
7. Level the Playing Field Between Insurers and Customers
Right now, insurance companies enjoy massive advantages over individual policyholders. They write one-sided contracts, delay claims, deny coverage on technicalities, and rarely face real penalties for bad faith actions.
Our legislators should consider:
- Creating statutory causes of action for bad faith denials
- Increasing penalties for unfair claims practices
- Requiring plain English explanations for claim denials
- Prohibiting rate increases when you file a no-fault claim
- Holding insurance companies accountable for careless claims handling
When insurers are forced to act with fairness and transparency, everyone benefits.
Why This Matters to You and Your Family
This isn't about punishing business—it's about demanding accountability from an industry enjoying a legal monopoly and guaranteed revenue stream. When the government requires citizens to purchase a product, the producers must be held to the highest standards of fairness, transparency, and public responsibility.
The cost of inaction is real:
- Rising premiums burden families already struggling with inflation
- Unfair claims practices leave accident victims vulnerable
- Policies favoring insurance corporations over consumers erode public trust
We Can Do Better—And We Must
Let's challenge our elected officials to stand with the people, not the insurance lobby. Let's reform the system to reduce crashes, cut fraud, and improve courts. Let's reward consumers when insurers profit and make South Carolina a national leader in road safety and insurance accountability.
Failure is not an option when it comes to protecting South Carolina citizens' rights and wallets.
