Reviewed By: Personal Injury Team Last Updated: June 29, 2026
Getting into a car accident can be a stressful situation, but factoring in driving with a suspended license can multiply your feelings tenfold. Not only do you now have to worry about filing a legal claim and seeking compensation, but new questions of legal penalties and insurance coverage are added to the mix.
Can you seek compensation, or does having a suspended license counteract it? Will insurance cover an accident if your license is suspended?
Our car accident lawyers help answer your questions about one of the most overwhelming situations you can battle on the road, and how we can help you seek justice and damages in the aftermath.
What is the Difference Between a No-Fault and At-Fault Car Accident?
The first step in determining how to approach a car accident claim is to identify who is held liable for the incident. After a car accident in South Carolina, insurance companies will initiate an investigation to determine who is to blame. A review of police reports, photos, and videos, witness statements, and vehicle data may be used to help determine liability.
No-Fault System vs. Fault-Based System
When a car accident takes place, liability will either operate under a no-fault system or a fault-based system, depending on your state.
In no-fault states, drivers involved in an accident file claims with their own insurance companies regardless of who’s responsible.
South Carolina, however, operates under a fault-based system, meaning that if a driver is found “at-fault” for the accident, their insurance company must pay for any economic and non-economic losses that follow, up to policy coverage limits.
Another component of the South Carolina at-fault system includes “comparative negligence.” Comparative negligence allows injured parties to seek compensation, even if they were partially to blame for the accident. As long as your fault accounts for 50% or less, you can receive compensation.
Can I Still Receive Compensation in a No-Fault Accident with a Suspended License?
A suspended license means the loss of driving privileges, so what happens when you are involved in a not-at-fault accident? Is the idea of compensation still available?
In short, yes, but the road to compensation may be more complicated with a suspended license in play.
Whether or not both drivers have a valid license is not necessarily a primary factor in determining fault, as the process for determining negligence and liability will only include a violation of the duty of care, the accident was deemed a direct result of that violation, injuries must be present, and actual damages must be able to be sought.
Pursuing damages, however, is a different story.
Suppose you attempt to pursue damages against the at-fault driver. In that case, their insurance company may try to lessen your compensation or get rid of the claim altogether by using your suspended license against you.
As the leading car accident law firm in the area, our Charleston car accident attorneys can help negotiate with insurance companies on your behalf and help you receive the compensation you deserve, despite your suspended license.
Will Insurance Cover an Accident if Your License is Suspended?
Having adequate insurance coverage is a major concern for many drivers. Determining if your insurance coverage is sufficient will come down to two key policy coverage sections: liability coverage and collision/medical coverage.
Liability coverage may still cover damages you cause to others, even if you are operating your vehicle with a suspended license. Collision/ medical coverage, on the other hand, may have a built-in “exclusion” that denies coverage for your own vehicle damages or injuries if you were operating with a suspended license.
Consult your policy coverage with a car accident lawyer near you to determine the legal limits of your insurance coverage.
Handling the Aftermath of a Car Accident with Added Complications? Leave it to Hoffman
A car accident is already a complex situation, but adding a suspended license to the mix can add a layer of stress and anxiety.
But don’t worry – you can leave it to Hoffman.
As the leading law firm in Charleston and Georgetown, our team proudly advocates for accident victims throughout the Palmetto State. As the locals’ trusted personal injury law firm, we have extensive experience handling a wide range of cases.
We have established a reputation for success and excellent service! To meet with a member of our team, schedule your free consultation today!
Explore more helpful articles on auto accident claims:
- How Many Points Do I Lose When I Get Caught Using My Phone While Driving in South Carolina?
- Can I Get a Ticket for Looking at My Phone at a Red Light in South Carolina?
- After A Car Accident, How Many Points Do I Lose On My SC Driver License?
- Who is At Fault in a Left Turn Accident in South Carolina?
- Who’s At Fault In an Accident Caused By Weather?
- Who’s At Fault in a Roundabout Accident?
- Hydroplaning Car Accident: Who Is at Fault?
- Accidents Involving An Uninsured Driver, Who Pays?
- What Should I Do in a Car Accident with an Uninsured Driver?
- View All Blogs
Sources
- S.C. Code § 15-33-135 – South Carolina Comparative Negligence: The state’s legal doctrine establishing a modified comparative negligence system with a 51% bar rule, meaning your right to compensation depends on your share of fault at the time of the wreck, not the status of your driver’s license.
- South Carolina Department of Motor Vehicles (SCDMV) – License Reinstatement: Regulatory rules mapping out the administrative process, route-restricted licenses, and fee requirements for clearing a driver’s license suspension in South Carolina.
- S.C. Code § 56-1-460 – Penalties for Driving Under Suspension (DUS): The criminal statute outlining the distinct penalties, fines, and potential jail time for operating a motor vehicle while a license is canceled, suspended, or revoked in the state.
Learn More About Car Accident Claims in Charleston
- Wondering about your injury claims & the costs of hiring an attorney? Learn more about Hoffman Law Firm’s client-first approach and how our Contingency Fee Structure ($0 Upfront Fee) works—meaning you pay absolutely nothing unless we successfully win your case. Free consultation available.
Disclosure & Legal Disclaimer: This blog is for general informational purposes only and does not constitute legal advice. Laws regarding car accidents, suspended licenses, insurance coverage, negligence, and compensation vary by case and may change over time. The information provided here is not a substitute for advice from a licensed attorney.
Any discussion of fault, insurance coverage, penalties, or potential compensation does not guarantee outcomes. Reading this content does not create an attorney–client relationship.
If you were involved in a car accident or are driving with a suspended license, consult a qualified South Carolina car accident attorney to understand how the law applies to your specific situation.
