South Carolina Bill Could End Zero-Deductible Windshield Repairs in 2027

South Carolina is one of only three states—alongside Florida and Kentucky—where insurers are prohibited from applying a deductible to windshield claims. This means cracked or shattered windshields are repaired or replaced at no out-of-pocket cost to policyholders. However, a new bill moving through the South Carolina General Assembly could end this long-standing benefit.

Under current law, drivers in South Carolina, Florida, and Kentucky automatically receive zero-deductible windshield coverage. Other states, including Arizona, Connecticut, Massachusetts, Minnesota, and New York, require insurers to offer optional zero-deductible glass coverage but do not mandate it.

Key Changes Proposed in the Bill

The new legislation, titled the Insurance Rate Reduction and Policyholder Protection Act (H.4817), would maintain the zero-deductible system until December 31, 2026. However, starting January 1, 2027, insurers would no longer be required to provide automatic zero-deductible windshield coverage. Instead, this coverage could become optional, potentially introducing deductibles for repairs or replacements.

Potential Financial Impact on Drivers

U.S. Rep. Nancy Mace, who is running for governor of South Carolina, highlighted the potential consequences of the bill. She stated,

"South Carolina drivers will likely have to pay an extra premium to keep their zero-deductible windshield coverage, or they will be subject to their standard comprehensive deductible (often $500 or $1,000) when a rock, from large 18-wheelers or bad road conditions (not your fault) cracks your windshield."

Additional Reforms in the Bill

The bill, which has passed the House and now moves to the Senate, includes broader reforms to the insurance industry. Key provisions include:

• Preventing insurers from raising rates or canceling coverage after an accident unless the driver is found at fault.
• Prohibiting the use of income level, location within the state, or race when setting auto insurance rates or determining eligibility.
• Addressing insurance fraud and regulating roof contractors.

These changes aim to enhance transparency and fairness in South Carolina’s insurance market while potentially increasing costs for drivers seeking windshield repairs.