Aircraft Insurance in South Carolina
Post-Accident Financial ResponsibilityState requirements, lender rules, and airport policies for South Carolina aircraft owners.
State Liability Insurance
Not Required
State Hull Insurance
Not Required
Lenders always require hull coverage
Federal Requirements (FAA)
The FAA does not require liability or hull insurance for privately owned general aviation aircraft. Only commercial air carriers must carry insurance under 14 CFR Part 205 ($300,000 per passenger minimum). This means neither federal nor South Carolina state law mandates insurance for private GA operations — but most pilots carry it anyway.
Post-Accident Financial Responsibility
South Carolina adopted the Uniform Aircraft Financial Responsibility Act per the Uniform Law Commission. This is a post-accident security requirement — NOT a pre-flight insurance mandate. After an accident, the state may require a security deposit; failure to comply leads to suspension of registration. Insurance is one acceptable method, along with surety bonds or cash deposits. Pre-flight insurance is not mandatory but is strongly recommended.
Lender Requirements
Most aircraft lenders require hull insurance with the lender named as loss payee, plus liability coverage of at least $1M.
Airport & FBO Requirements
Many South Carolina airports and FBOs require proof of liability insurance ($1M minimum) for based aircraft and transient operations.
Recommended Coverage
Regardless of state law, most aviation professionals recommend at minimum:
- ✓$1M combined single limit liability with $100K per-passenger sublimit — the most common GA coverage level
- ✓Hull coverage equal to current market value (stated value, not actual cash value)
- ✓In-motion and not-in-motion coverage (ground and flight)
Source: AOPA Insurance Services. An estimated 10-20% of GA aircraft fly uninsured (GAO Report GAO-15-740, 2015).