South Carolina law mandates that all automobiles be covered by automobile liability insurance policies. The law is found at S.C. Code Ann. § 38-77-140. This statute provides, in part, as follows:
No automobile insurance policy may be issued or delivered in this Stateto the owner of a motor vehicle or may be issued or delivered by an insurer licensed in this State upon any motor vehicle then principally garaged or principally used in this State, unless it contains a provision insuring the persons defined as insured against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of these motor vehicles ....
The key provision of this liability insurance statute relates to the words, "arising out of the ownership, maintenance, or use" of the car. Thus, South Carolina automobile insurance policies must provide coverage when liability arises due to these activities.
Sometimes the scope of potential liability coverage arises in situations most people would not expect coverage. For example, we have recovered liability payments when the vehicle owner negligently left a part under some leaves in a parking lot. The part caused a passer-by to trip and fall. Since the fall arose out of the maintenance of the vehicle, the automobile liability policy applied and the person was able to obtain a recovery from the insurance company.
Other times, such as when a vehicle is used as a platform to commit an assault on a person, like a drive-by, gangland shooting, our law holds that such injuries do not "arise from the use" of the vehicle. Rather, the vehicle's involvement is just fortuitous and use of the vehicle bears no relationship to the intentional act. Then, the liability insurance policy may not apply to cover the wrong-doer.
