South Carolina sees rising insurance rates; is proposed reform enough?

CHARLESTON, S.C. (WCSC) — Insurance rates are rising, companies are leaving the state, and South Carolinians say they’re not getting what they pay for.
South Carolinians have seen their insurance rates continue to rise in recent years in every area: health, auto, home and life. But a massive insurance reform bill currently before legislators is hoping to change that.
Tragedy becomes a fight for proper insurance coverage
Jayne Pate will never forget August 16, 2025.
“Friends of mine called me and said the house was on fire,” Pate said.
Pate rushed to her home on Fripp Island, located 18 miles east of Beaufort, and saw her home engulfed in flames. Her husband of 18 years was trapped inside.
“It was just total destruction and my husband was in the house,” Pate recalled.
Firefighters battled the fire for 14 hours, but flames claimed the life of 70-year-old Michael Pate and their family dog.
“He was the nicest person I’ve ever met, he really was,” Pate said.
Pate had to begin the unimaginable, navigating alone the life she once shared with her husband. That included figuring out their insurance policies.
“I was on my own,” Pate said. “I really didn’t understand how insurance worked until this happened to me.”
One of the insurance policies her husband had in place was on Pate’s valuable jewelry, important pieces tied to memories that were lost in the fire.
“I had an appraisal done by a gemologist and I sent him pictures of my jewelry. I felt very confident in the price that he came back with and theirs (insurance company) was significantly under that,” Pate said.
“I thought there shouldn’t be an issue with just paying me the premium on it,” Pate said. “I know they wouldn’t pay over the premium, but then they didn’t pay the premium even.”
The larger fight
Pate’s story is one many South Carolinians know firsthand. From auto and homeowners insurance to health and life insurance, the fight against billion-dollar companies for transparency and reduced rates is nearly impossible.
“They need to be accountable to the citizens of South Carolina on why all of these rates are going up,” Attorney Kevin Dean said.
Dean works with clients who hope to fight against unfair or underpaid insurance claims.
“They always want to not pay a legitimate claim at a legitimate value that’s based upon real world information,” Dean said. “The delay, the devaluation of the claim, comes at a time when you most need your insurance company.”
South Carolina drivers pay about 36% more than the national average for auto insurance. From 2021 to 2024, Charleston homeowners saw a 22% increase in home insurance premiums.
South Carolinians are more likely to not have health insurance compared to the rest of the nation.
“My clients sometimes go three years without resolution, and we never get reimbursed the interest that the insurance company held on to those funds over those three years,” Dean said.
But change may be coming…
Inspired by reform in other states and rising rates, South Carolina created its own committee, chaired by State Representative Gary Brewer, who worked hand-in-hand with SC’s Department of Insurance Director Michael Wise.
A massive bill, House Bill 4817, is on its way to the Senate this week and looks to begin changing how insurance is handled in the Palmetto state.
“We can’t guarantee that this will decrease insurance costs in our state, but some of these things can put downward pressure on insurance prices and premiums,” Wise said.
Factors into rising rates
Fraud and severe weather have pushed insurance companies out of the state, which has allowed the remaining companies to increase rates because there is limited competition.
“We needed more competition if you wanted to have any type of downward pressure, and then we have to limit the frequency and severity of these claims,” Brewer said.
Insurance fraud is prevalent in South Carolina. The state is ranked ninth in the nation for staged vehicle accidents and questionable roofing claims went up 90% in 2024.
“Insurance fraud is rampant in our state and it costs people money,” Wise said. “It also endangers people’s lives.”
Under the bill, the Department of Insurance would take over fraud investigations and criminal penalties would increase.
“We’re going to start popping you on the first one and we’re going to go after you all the way,” Brewer said. “If you continue to do it, we’re going to continue to punish you.”
Massive storms that tear through the Lowcountry also force insurance companies to pay much more in damages than in other inland states. At the end of 2024, the combined ratio for homeowners’ insurance in South Carolina was up almost 144%, which means for every $1 of premium collected, $1.44 were paid out by an insurance company.
“They lost a lot of money; they had a lot of risk in South Carolina,” Brewer said.
Under the reform, homeowners who fortify their homes against severe weather could receive tax incentives and lower insurance rates. The state’s Safe Home Program also helps people who live near the coast make their homes stronger during strong winds, which gives grant money to homeowners.
“That is the idea behind the Safe Home Program, the more claims you can prevent, the better,” Wise said. “An ounce of prevention is worth a pound of cure, as they say, and in this case, that rings true.”
Even more reform needed, advocates say
Whether or not the bill passes, there are still areas to improve in the insurance industry in South Carolina.
The victims of fraud or simply bad experiences with insurance companies say rate transparency is not only wanted, but necessary to protect South Carolinians.
“It should be on the insurance side to make sure that what they’re covering is actually the value of what they’re covering instead of this negotiation after the tragedy,” Pate said.
“We need to have the ability to force insurance companies to justify why they’re raising our car insurance, why they’re raising our property insurance, and all insurances across the board, including health and life,” Dean said.
South Carolina’s Department of Insurance provides resources and insurance locators that can be found on its website.