Amy Higgins

To drive legally, most states require drivers to buy liability auto insurance. In South Carolina, however, drivers can opt out of liability insurance by paying a $550 uninsured motorist fee to the South Carolina Department of Public Safety.

According to the South Carolina Legislative Council, this fee increases annually based on how much insurers in the state increase rates. Fees are used to offset the costs of uninsured motorist coverage in the state and to provide education programs for South Carolina drivers, according to the the South Carolina Department of Insurance. Although the fee gives the driver the freedom to drive legally in the Palmetto State, it does not provide any kind of insurance protection. 

Road hazard

Drivers who opt to pay the uninsured motorist fee instead of purchasing auto insurance put themselves at risk. This fee does not cover costs associated with auto accidents, so drivers will be responsible for any damages if they cause an accident. If you drive without auto insurance and are the at-fault driver in a fender-bender, you could end up paying hundreds, possibly thousands, of dollars in damages. But if you cause an accident resulting in injury or death, you could suffer a devastating financial (and personal) loss.

South Carolina drivers who do choose to buy liability insurance must get the state's minimum amounts of coverage: $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $25,000 for property damage per accident.

Don't lie

According to the South Carolina Legislative Council, drivers without insurance who are licensed in the state or required to have their vehicles registered in the state are guilty of a misdemeanor if they operate or permit the operation of their vehicles without having paid the fee. A first offense will land you a fine of up to $200 or 30 days' imprisonment. Fines and imprisonment increase with each offense. Those who present false evidence that a vehicle is insured are subject to the same penalties.

Alternative options

Licensed drivers who continually are turned down for auto insurance may be able to purchase high-risk coverage through the South Carolina Associated Automobile Insurers Plan. This is a good option for high-risk drivers who would rather not operate a vehicle without protection. But the South Carolina Department of Insurance warns that his option should be used only as a last resort, as high-risk auto insurance comes with relatively high premiums.

The asking price for insurance

In 2008, the average annual cost for South Carolina auto insurance was $466 for liability coverage only, according to the Insurance Information Institute. That's $84 less than the uninsured motorist fee. However, there are several factors that affect auto insurance premiums. The driver's age, vehicle type and residential location could result in a premium well above or below that average. Teen drivers will be charged higher rates because of their lack of experience behind the wheel. Residents of bigger cities like Columbia or Charleston likely will pay more for auto insurance, as more people translates to more drivers and more accidents.

Keep your eyes on the road

South Carolinians have options to drive legally. Choosing to pay the uninsured motorist fee rather than purchasing auto insurance boils down to choice -- and confidence. After all, according to a 2009 Insurance Research Council news release, 9 percent of South Carolina drivers were uninsured in 2007. Uninsured drivers involved in accidents with other uninsured drivers can make for some hefty out-of-pocket bills for everyone involved.