Car insurance in South Dakota

Posted on September 26, 2014

Scoring the lowest possible premiums on South Dakota auto insurance is not hard at all when you follow a few simple steps. Here is a summary of current stats, facts, laws, rates and other information regarding car insurance in the state of South Dakota.

South Dakota Minimum Liability Coverage

Insurance professionals refer to South Dakota’s minimum required car insurance coverage as 25/50/25. That means $25,000 in Personal Injury Protection (PIP), $50,000 in per-accident protection and $25,000 against property damage, for a total of $100,000 in liability coverage per owned vehicle.

South Dakota’s minimum coverage for property damage is relatively high. According to analysts, this may be partly because vehicles in South Dakota suffer more hail damage than vehicles in any other U.S. state except Wyoming. South Dakota auto insurance companies paid out more than twenty million dollars in claims last year on hail damage alone.

Penalties for Driving Without Insurance in South Dakota

People caught driving uninsured vehicles in South Dakota face fines from $100 to $500, and a suspended driver’s license for 30 days to one year. This is usually followed by further annoyances like reinstatement fees and raised premiums.

Auto Insurance Rates in South Dakota

In 2016, the average annual auto insurance premium in the state of South Dakota was $1,168, lower than the national average at the time, which was $1,347. The state’s low population density and relatively strong economy help keep the rates down. South Dakota also shines in terms of accident statistics: The state has the second lowest percentage of DUI fatalities of all U.S. states, with fewer than 35 such deaths reported last year. However, many of the state’s residents live on Indian reservations, where DUI deaths are relatively common but under-reported.

Low Cost Car Insurance Programs in South Dakota

According to the Department of Energy, the state of South Dakota, with its easy parking, low cost of living, strong commercial economy and below average insurance premiums, is the least expensive state in America to own a car. Still, vehicle owners in South Dakota find ways to bring their car insurance costs even lower. Ways of lowering premiums include annual payment in full, signing on for increased deductibles, improving one’s credit rating, and living alone (or living with low-risk drivers), to name just a few viable options.

The biggest savings on annual car insurance comes from qualifying for as many discounts as possible. These include good driver discounts, good student discounts, senior citizen discounts and vehicle safety discounts, among others. Most car insurance carriers also offer multiple policy discounts and multiple auto discounts.

Obtaining Auto Insurance Quotes in South Dakota

Customer satisfaction ratings indicate that the most popular auto insurance providers in South Dakota are AAA, Auto Owners Insurance, Farm Bureau, Geico, State Farm and 21^st Century. Still, many South Dakota drivers prefer locally based insurance carriers like Western National. In any case, the state of South Dakota is home to no less than twenty-five carriers of auto insurance at competitive rates. Call around, request free quotes, and compare. Be sure to snag those discounts!

South Dakota Car Insurance

Scroll down for a collection of facts and figures regarding South Dakota car insurance.

Learn how to lower your annual premium rates to an absolute minimum, while also perusing interesting facts about the state of South Dakota.

Look at a list of the four cheapest and the four priciest neighborhoods in South Dakota to buy car insurance. Analyze South Dakota zip code information. Scan South Dakota poverty rates, unemployment data, population densities, median incomes, uninsured drivers in the state of South Dakota, and other zip code-based demographics that affect South Dakota car insurance rates.

Learn about the types and amounts of auto insurance coverage South Dakota drivers need. View a list of of the 10 largest car insurance companies in the United States, followed by a list of the 10 largest car insurance companies in the state of South Dakota. You can even find here the average annual car insurance premium rate for the state of South Dakota. Compare this average to your own South Dakota car insurance rates.

Finally, read on to learn how South Dakota drivers can get as many auto insurance discounts as possible to reduce the premium rates on their personal South Dakota car insurance policies.

South Dakota Car Insurance Statistics

In terms of population density, South Dakota is ranked 46^th in the nation. Only the states of Alaska, North Dakota, Wyoming, and Montana are more sparsely populated than South Dakota. The state of South Dakota is home to fewer than 866,000 people, according to a 2016 census bureau estimate. The median resident age in South Dakota is about 36.9 years.

The unemployment rate in South Dakota hovers around 2.9 percent, quite a distance below the overall national average unemployment rate of 4.4 percent. In fact, South Dakota ties with Nebraska and New Hampshire for the 4^th lowest unemployment rate of all 50 states. The poverty rate in South Dakota is roughly 13.7 percent, very near the national average poverty rate of 13.5 percent.

Researchers noticed that the statewide average annual premium rate for a South Dakota car insurance policy was around $1,059, nearly $300 below the overall national average car insurance rate, which was about $1,355 at the time. In fact, on average, South Dakota is the 10^th cheapest state in America to buy car insurance.

Another team from the Insurance Research Council studied a sample of South Dakota drivers. The study revealed that 7.8 percent of vehicles on South Dakota roads are uninsured. That’s about 1 in 13 South Dakota drivers operating uninsured vehicles. This is not too bad when compared to the 12.6 percent overall average rate for uninsured drivers in America.

The 10 Largest South Dakota Car Insurance Companies

Scroll down for a list of the 10 largest car insurance companies in the United States, followed by a list of the 10 largest car insurance companies in the state of South Dakota. The car insurance companies listed here are ranked by the total yearly dollar amount of direct premiums written. This amount indicates each company’s total market share in the USA, and in the state of South Dakota.

According to statistical reports, the ten largest auto insurance companies in America are

Allstate Insurance
State Farm Insurance
Geico
Progressive Insurance
Nationwide Group
AAA
Liberty Mutual Insurance
21^st Century Insurance
GMAC
AIG

… in that order.

Shown below is a list of the ten largest car insurance companies in the state of South Dakota:

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Insurance Group	$81,189	18.75
2	Progressive Insurance Group	$62,296	14.39
3	American Family Insurance Group	$47,083	10.87
4	Farmers Insurance Group	$24,348	5.62
5	Nationwide Insurance Group	$21,550	4.98
6	De Smet Insurance Group	$19,012	4.39
7	Farm Bureau P&C Group	$18,150	4.19
8	Farmers Mutual Insurance of NE	$17,486	4.04
9	USAA Group	$15,715	3.63
10	Berkshire Hathaway Insurance	$12,409	2.87

As in many states, State Farm Insurance holds the lion’s share of the South Dakota car insurance market. Not that State Farm is the best carrier for you, necessarily. There are numerous other major carriers, or maybe you prefer a smaller, regional company. Your choice of car insurance company may also depend on your personal situation. For instance, senior drivers gravitate toward The Hartford Insurance Group, because The Hartford caters to senior drivers. People currently and formerly enlisted in the U.S. Military (and their families) often choose USAA insurance, whose target consumers are military personnel. There is really no such thing as The One Best South Dakota Car Insurance Company For Everyone.

However, with a small amount of research, South Dakota drivers can save good money on their car insurance premium rates.

Cutting Costs on South Dakota Car Insurance

Here’s how to reduce the premium rates on your South Dakota car insurance policy:

Read a smattering of consumer reviews of at least a few South Dakota car insurance companies. Be aware that all insurance companies get negative reviews. Make a list of the car insurance carriers that appeal to you.

Visit the website of each company on your list, and get a number of online quotes. Compare these online quotes, with all available discounts factored in. You can also get quotes for several South Dakota zip codes from a single car insurance company website.

Be sure to find every discount available at each car insurance company. Some discounts will be automatically applied, while other discounts can be discovered by checking the discount page and possibly calling an insurance agent. You may qualify for an occupational discount, a family discount, and/or a Good Student discount, among others.

What Types Of Car Insurance Do South Dakota Drivers Need?

As required by South Dakota state laws, each vehicle owned must have minimum insurance coverage amounts of $25,000 for bodily injury to others, $50,000 in per-accident coverage, and $25,000 to cover the cost of property damage.

Drivers in South Dakota also must buy the same bodily injury liability coverage amounts in uninsured and underinsured motorist insurance (UMI).

However, minimum coverage amounts required by state laws are typically not enough to cover the cost of car repairs and/or medical bills that may result from an auto accident. That’s why insurance experts in the state of South Dakota (and all across America) agree that the optimal coverage amounts are $100,000 for personal injury protection, $300,000 against bodily injury to others, and at least $50,000 to cover the cost of property damage.

For added vehicle protection, South Dakota drivers can buy comprehensive and collision coverage. This insurance pays the cost of vehicle repairs for defects caused by collisions, hail damage, flooding, vandalism, falling or flying objects, and other expensive catastrophes.

Best And Worst Zip Codes For South Dakota Car Insurance

Car insurance premium rates in South Dakota can change a lot between South Dakota zip codes, due to demographic variances in population densities, crime levels, and especially unemployment and poverty rates. Low income levels will lead to a higher percentage of uninsured drivers on the roads.

Here is a list of the four most expensive neighborhoods (on average) in the state of South Dakota to buy car insurance. Annual premium rates in these zip codes can range from about $960 to around $1585, with an average rate of approximately $1,290. The reason the rates in these areas are so high is the preponderance of people of very low income, who sometimes have no choice but to drive uninsured.

Zip Code	Pop Density	Unemployed %	Poverty %
57551 (Martin)	3	7.60%	21.90%

This Bennett County neighborhood is situated between the Pine Ridge and the Rosebud Indian reservations. Martin is home to roughly 2,000 people. More than half of them are Lakota (Sioux) people from the Oglala, Brule, Minneconjou, and other native tribes. Lakota people tend to be very low income, and cannot generally afford the cost of car insurance. This may mean there is a larger than state average percentage of uninsured vehicles in the area. Poverty and unemployment are also quite a bit higher than the state average. This should help explain why Martin is the most expensive neighborhood in all of South Dakota to buy car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
57566 (Parmelee)	8	21.90%	49.60%

This Todd County zip code is on the Rosebud Indian reservation, and has an estimated population of approximately 1,400. Roughly 1,000 of them are Native American. The poverty rate is crushing, with almost half of this neighborhood’s population living at or below the poverty line. The unemployment rate is more than seven times the 2.9 percent state average. The median resident age here is only 21.5 years, more than 15 years below the South Dakota median age of 36.9 years. This is due to an unusually high percentage of children. Many people move away from the reservations when they reach their adult years.

Zip Code	Pop Density	Unemployed %	Poverty %
57570 (Rosebud)	22	27.10%	44.30%

This neighborhood is home to just over 2,000 people. Nearly 1,900 of them are Lakota (Sioux), from various tribes. The poverty rate here is well over three times the 13.7 percent state average, while unemployment is more than nine times the 2.9 percent state average. The median resident age in this zip code is 23.0 years, nearly 14 years below the median resident age for South Dakota. This is probably for the same reason as the above-mentioned zip code.

Zip Code	Pop Density	Unemployed %	Poverty %
57572 (Two Strike)	10	29.60%	59.00%

Two Strike is another reservation neighborhood. This zip code is home to roughly 1,800 people. Of these, more than 1,700 are Lakota (Sioux) natives. The median resident age here is 21.5 years. Two Strike is located less than two miles southwest of Rosebud. The poverty rate is positively stifling, while unemployment hovers at more than ten times the South Dakota state average.

Now compare the South Dakota neighborhoods listed above to the zip codes detailed below. Here is a list of the four least expensive zip codes (on average) in the state of South Dakota to buy car insurance. Annual premium rates in these areas can range from around $585 to about $1,530, with an average annual premium rate of around $930.

Zip Code	Pop Density	Unemployed %	Poverty %
57201 (Watertown)	78	3.00%	10.60%

This Codington County zip code is home to more than 25,000 people. The unemployment rate is right around the 2.9 percent state average here, and the poverty rate is a safe distance below the 13.7 percent state average. This is the cheapest neighborhood for South Dakota car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
57242 (Hazel)	4	3.20%	8.20%

Fewer than 500 people live in this Hamlin County zip code. Unemployment is not too far above the state average, while the poverty rate falls far below the state average. This is another healthy neighborhood to buy South Dakota car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
57243 (Henry)	6	0.90%	5.90%

This Codington County neighborhood is home to less than 800 people. Unemployment almost doesn’t exist here, and the poverty rate is extremely low.

Zip Code	Pop Density	Unemployed %	Poverty %
57106 (Sioux Falls)	1,430	4.10%	10.20%

Sioux Falls is the largest city in South Dakota, located in Minnehaha County. This zip code is home to more than 43,000 people, although the population density is low. The unemployment rate is a bit above the 2.9 percent state average, but the poverty level is well below the state average.

Overall, the rugged state of South Dakota is home to 385 zip codes covering 66 counties that encompass 363 cities, from Aberdeen to Yankton and everywhere in between. There is a difference of more than $350 in average annual premium rates between the cheapest zip codes and the most expensive zip codes in the state of South Dakota to buy car insurance.

How much can you can save on South Dakota car insurance?

by admin