Under a bill poised to win approval in the South Carolina legislature, the decades-old practice of let
ting many drivers automatically enjoy relatively painless windshield replacements may soon disappear.
House Bill 4817, titled the “Insurance Rate Reduction and Policy Holder Protection Act,” also wo
uld give the state Department of Insurance more investigative and enforcement powers and would set new penalties for insurers and insureds that violate certain statutes.
The 40-page bill, which has multiple sponsors, would end the 37-year-old law that exempts auto glass from mandatory auto insurance deductibles for d
rivers with comprehensive coverage. If passed and signed into law, the measure would let drivers ch
oose a deductible-free windshield replacement plan or a different plan, according to the bill and state news reports.
The change would help reduce fraud or inflated claims blamed on some glass installers and would reduce premiums for consumers who opt out of deductibl
e-free windshield replacement, supporters said. Some may choose windshield repair instead of full replacement.
One lawmaker, state Rep. Joe White, questioned the proposed change. He argued that the rationale for the 1989 law was to promote safety, not lower premiums, the S
outh Carolina Daily Gazette reported. Many drivers may choose to drive with a cracked windshield if the bill passes, he said.
A late Senate committee amendment would cap the deductible for windshield coverage insurance policies at $100.
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The bill also would require that property insurers provide actuarially sound premium discounts or credits to insureds who build or retrofit their homes or com
mercial properties to fortified standards as set by the Insurance Institute for Building and Home Safety.
“Nothing in this section shall prohibit insurers from offering additional adjustments in deduc
tible, other credit rate differentials, or a combination thereof,” the bill reads.
If the full Senate accepts the late committee amendment and approves the bill, the Sen
ate version would have to be reconciled with the House version. And there’s not much time left. The South Carolina General Assembly is set to adjourn Thursday, May 7.
