South Carolina Tort Reform 2026: What Trucking Needs to Know

 

South Carolina Trucking Insurance Has a Lawsuit Problem

If you run trucks in South Carolina, your insurance bill hasn’t just gone up. It’s exploded. And it’s not because you’re wrecking more trucks.

It’s the lawsuits.

Big verdicts. Bloated medical bills. Jackpot settlements backed by outside investors. And trucking companies, whether they were 20% or 80% at fault, are stuck paying the full price.

Let’s break it down.

• From 2017 to 2022, total liability premiums in South Carolina jumped from around 260 million dollars to over 500 million.  That's almost double!

• Single-unit carriers are now paying around $14,700 dollars a year for basic liability

• Premiums are rising even as policy counts drop

• The state hadn’t updated its tort laws in over a decade

That combination is a red flag. Claims costs are driving rate hikes, but nothing was being done to balance the courtroom. Until now.

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H.3430: The Law That Might Finally Shift the Scales

On paper, this is a civil reform bill. In real life, it’s the first sign that South Carolina courts may stop handing out oversized verdicts with no accountability.

Here’s what’s actually in the bill and why it matters.

1. Modified Comparative Negligence

This is a big one. Before, a trucking company that was just 10% at fault could still end up paying 100% of the damages if the other party couldn’t cover their share.

Now, if you are less than 50% at fault, you won’t be stuck holding the bag for everyone else. That’s huge for multi-vehicle crashes or cases where fault is murky.

2. Nonparty Fault Gets Exposed

Juries will finally hear about other responsible parties, even if they’ve already settled or weren’t sued.

That means fewer one-sided stories in court. No more blaming the trucking company for everything while keeping other key players off the record.

3. Seat Belt Evidence Allowed

Under the old rules, you couldn’t bring up whether someone was wearing a seat belt. Now, you can.

This is critical in injury cases where seat belt use could have reduced or prevented harm. It gives defense attorneys real leverage in court.

4. Anchoring Tactics Get Shut Down

Plaintiff lawyers love to throw out massive pain and suffering numbers during closing arguments, with no evidence to back them.

H.3430 puts a stop to that. Any number they suggest now has to be tied to something concrete in the case.

5. Discovery Pauses for Early Motions

This one’s all about cost control. If a defense attorney files a motion to dismiss or challenge a claim early in the process, it now pauses discovery.

That prevents needless legal spend on claims that may not survive pre-trial review.

6. Litigation Funding Comes Into the Light (Our favorite!)

Third-party litigation funding: hedge funds and foreign investors bankrolling lawsuits from the shadows are now under regulation! 

Under H.3430:

• Funders must register with the state

• Agreements must be disclosed to all parties

• Funders cannot control case strategy or settlement

• Foreign adversaries are banned from participating

• They can be held financially responsible for bad cases they bankroll

That changes the game. Outside investors have been one of the biggest hidden drivers of inflated trucking verdicts. Now we’ll know who they are and why they’re pushing a case so hard.

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So What Does This Mean for Insurance Rates?

We get this question a lot. And here’s the honest answer.

A law doesn’t lower premiums. Court results do.

Carriers price coverage based on payouts. Not press releases.

But here’s how this could play out:

2025

• The law is signed

• Insurers begin planning for defense shifts but stay cautious

• No major changes to pricing yet

2026

• H.3430 takes effect on January 1

• First claims start moving through the courts

• Legal strategies begin to shift

• Carriers look for early verdict signals

2027 and beyond

• If payouts come down and verdicts stabilize, underwriters may start adjusting models

• Safer fleets with clean loss runs could see pressure ease on their renewals

• Excess liability layers may get more competitive

Bottom line

Don’t expect a rate drop next month. But if you’re running a clean operation, this law could stop your pricing from getting worse.

And over time, it may even give you room to negotiate again.

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Key Date to Watch

January 1, 2026
That’s when H.3430 officially becomes law. Any claims filed after that date follow the new rules.

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Our Take

This is a strong start. It doesn’t solve every problem, but it hits real courtroom tactics that have crushed trucking companies for years.

It puts limits on blame. It pulls back the curtain on lawsuit funding. And it finally gives defense attorneys the tools they’ve needed in South Carolina.

We’ll be watching every case that comes through the system after January 1. Those verdicts will shape how the insurance market responds, and how much longer South Carolina carriers stay in the hot seat.

Questions about how this impacts your policy?
Email us anytime at info@trucku.biz. We’ll walk you through it.

Disclosure:

This post is for educational purposes only. It’s not legal advice, insurance advice, or a substitute for calling your agent. We’re good, but we’re not psychic. Policies vary, laws change, and courtrooms get weird. Don’t make decisions based solely on something you read on the internet, unless it’s from us, in writing, with your name on it. 

All opinions are our own and do not represent the views of any carrier, employer, or underwriting department that occasionally wishes we were quieter on LinkedIn.