S.C. Tort Debate: Insurance Gouging Is Fraud
- SCCLR Newsletter
- Jul 15
- 3 min read
by RICK TODD
If someone fakes an injury, inflates a medical bill or stages a crash, most of us would call that fraud. But in South Carolina’s civil justice system, some of these practices are not only tolerated — they’re rewarded.
And it’s costing all of us.
The men and women who keep South Carolina’s economy moving — truck drivers, small business owners and freight haulers — are being targeted by a broken system. That system encourages excessive lawsuits, outsized settlements and inflated insurance premiums. It’s become so lucrative that it’s attracting bad actors and trial lawyers like moths to a flame.
Let’s be clear: accidents happen. And when they do, those harmed deserve justice. But our civil courts are supposed to deliver fairness, not jackpots.
That’s not what’s happening today.
In many cases, claims spiral far beyond actual damages. Contingency-fee lawyers stack on “pain and suffering” demands and collect as much as 40% of the final payout even when the injuries are minor or exaggerated. Add in venue shopping, aggressive advertising and courtroom theatrics and you’ve got a system that no longer prioritizes truth or fairness. It’s about extracting the maximum payout no matter the facts.
Commercial trucking operations are an easy target. We carry large insurance policies often far beyond what most private drivers have, and deep-pocketed lawyers know it. It doesn’t matter that legitimate crashes are covered fairly and promptly by our carriers – or that it’s relatively rare a claim truly exceeds coverage limits. The system has devolved to exploit every opportunity, where they can dig deeper.
And when insurance premiums skyrocket, the costs don’t stay on our balance sheets. They get passed on — to small businesses, to grocers and ultimately to consumers. Trucking keeps your shelves stocked. It delivers the packages to your doorstep. When trucking gets squeezed, so does everyone else. At a time when families are already hurting from record inflation, this broken system makes everything even more expensive.
We’ve seen it all: staged crashes, inflated medical bills, fraudulent claims, predatory towing, even coordinated freight theft. We’re not just fighting lawsuits. We’re fighting rackets.
This year, South Carolina’s Senate took a bold step forward by passing a first-round package of legal reforms to address lawsuit abuse and insurance gouging. It was a hard-won victory and the blowback from entrenched trial lawyer interests was immediate and vicious. They’ve profited from the current system for far too long and they don’t want it to change.
As someone who’s spent nearly five decades advocating for highway safety and trucking policy in our state, I’ve never seen such a coordinated assault on reform-minded lawmakers. Unfortunately, much of that reform was gutted or watered down when the bill reached the House. What’s left is filled with loopholes and legal head-scratchers that may not even pass constitutional muster.
In the meantime, insurance premiums keep rising and South Carolina truckers and consumers pay the price.
We appreciate that House leaders have now created a special committee to examine the real drivers of high insurance costs. Their first item on the agenda? Fraud. We couldn’t agree more.
Let’s finally bring transparency and accountability to a system that desperately needs it.
Let’s stop pretending that ambulance chasing and billboard justice are harmless. Let’s call this what it is: a cash grab for a handful of trial lawyers buying new boats and beach houses while the rest of us stretch every dollar.
And let’s give our state the kind of fair, modern civil justice system that supports job creators not predators.
Because if we don’t, more good businesses will get bled dry. And we’ll all feel it at the grocery store, the gas pump and beyond.
J. Richards “Rick” Todd is the president and CEO of the South Carolina Trucking Association, an “alliance of businesses that use trucks.” Their advocacy has positioned South Carolina’s motor carriers with excellent operating and tax conditions, by leading or participating in initiatives reforming and restructuring state government and improving highway infrastructure. Restoring fairness to the state’s auto-liability system is a top priority so that the state’s commercial fleets can competitively serve the state’s economic demands.
Rick is a Columbia native and began his career at SCTA in 1979 upon graduation from the University of South Carolina with a Degree in Journalism. He has been CEO since 1988. He has chaired, held leadership positions, and received numerous distinguished awards from state and national associations and organizations.
