Cheap Car Insurance Companies In South Dakota

The average semiannual cost of car insurance in the state of South Dakota is $755.00. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in South Dakota across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 2/29/2024

The South Dakota car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in SD. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

South Dakota Minimum Liability Coverage

South Dakota has minimum liability insurance requirements meant to protect other drivers and their property in the event of an accident. Under South Dakota law, all drivers are required to carry the following minimum amounts of liability insurance:

• Bodily Injury per Person: $25,000. This covers injuries to one person in an accident.
• Bodily Injury per Accident: $50,000. This covers cumulative injuries to all persons in a single accident.
• Property Damage: $15,000. This covers damage to others’ vehicles and property in an accident.

Together these amounts make up South Dakota’s minimum liability coverage, commonly referred to as “25/50/15.” Liability insurance pays for damage or injuries to other parties in an accident that you cause. It does not cover damage to your own vehicle.

Penalties for Driving Without Insurance in South Dakota

In the state of South Dakota, it is illegal to operate a motor vehicle without liability insurance coverage. All drivers are required by law to carry minimum liability insurance limits of $25,000 per person for bodily injury, $50,000 per accident for bodily injury to all parties involved, and $10,000 for property damage.

Those caught driving without insurance in South Dakota face serious penalties. For a first offense, drivers face a fine between $200 and $400. Their license will also be suspended for 30 days, and they must file proof of insurance with the state before their license can be reinstated.

For a second offense within three years, the penalties become more severe. Drivers will face a fine between $400 and $2,000, and their license will be suspended for one year. They must also file proof of insurance and install an ignition interlock device on their vehicle before their license can be reinstated.

For third and subsequent offenses, drivers will face fines between $600 and $1,000, and their license will be suspended for one to two years. They must file proof of insurance and install an ignition interlock device to regain their license. Additionally, they may be charged with a class 2 misdemeanor, which carries the possibility of jail time up to 30 days.

In addition to the penalties imposed by the state, drivers caught without insurance will also likely see their insurance rates increase substantially if and when they do purchase insurance. They may also have difficulty obtaining insurance from some providers. The penalties are meant to encourage compliance with the state’s financial responsibility laws and promote safer roadways.

Auto Insurance Rates in South Dakota

Auto insurance rates in South Dakota are generally considered to be among the lowest in the nation. There are a few key factors that contribute to these lower insurance rates:

First, South Dakota has a very low population density. With fewer cars on the road, there are fewer opportunities for accidents and claims to occur. This means insurance companies can offer lower premiums while still maintaining adequate risk pools.

Second, South Dakota has relatively mild weather conditions with few extreme weather events. Severe weather like snowstorms, ice storms, and hurricanes can increase the likelihood of collision claims. The state’s generally mild climate helps keep insurance costs down.

Third, South Dakota has a lower number of uninsured drivers compared to the national average. When more drivers carry insurance, it reduces the costs that insured drivers have to cover. This allows insurance companies to charge slightly lower rates.

Fourth, South Dakota has a lower number of traffic fatalities per capita compared to other states. Fewer serious accidents mean lower payouts for insurance companies, allowing them to pass on some of those savings to customers through lower premiums.

Finally, South Dakota has less comprehensive regulation of auto insurance rates compared to some other states. While this can give consumers more options, it also allows more flexibility for insurance companies to set competitive rates.

Low Cost Car Insurance Programs and Discounts in South Dakota

Car insurance is required by law in South Dakota, but the costs can add up quickly. Fortunately, there are several programs and discounts available to help keep your premiums low. Here are some of the most common options:

• Good Student Discounts. Many insurance companies provide discounts of up to 25% for students who maintain good grades. To qualify, you’ll need to submit report cards or transcripts showing at least a B average.
• Multi-Car Discounts. Bundling multiple vehicles on the same policy can save you 5% to 15% on your premiums. This applies whether you insure two or more cars for the same household or for multiple family members.
• Safe Driver Discounts. Drivers with a clean record for several years can qualify for discounts of up to 20%. The longer your clean record, the higher the discount.
• Anti-Theft Devices. Install anti-theft devices like immobilizers, alarms or tracking systems and you could see premium reductions of 5% to 10%. Make sure your insurer knows what devices you have.
• Low Mileage Discounts. If you drive less than 7,500 to 10,000 miles per year, you may qualify for a discount of up to 15%. Provide your estimated annual mileage when getting quotes.
• Military Discounts. Active duty and retired military personnel are often eligible for premium discounts of 5% to 25%.
• Affinity Memberships. Some insurance companies offer discounts for membership in certain organizations or alumni associations. Check with your insurer to see what programs they participate in.

South Dakota Car Insurance Statistics

The average annual premium for car insurance in South Dakota is $742 according to the National Association of Insurance Commissioners. This is slightly below the national average of $935.

Rates tend to be lower in South Dakota due to less traffic, lower population density and less severe weather. However, rates can vary significantly based on location, driving record, vehicle type and other factors. Shopping around for the best rates is always a good idea.

South Dakota has a lower-than-average number of uninsured motorists at 9.7% compared to the national rate of 12.6%. However, drivers should still consider uninsured/underinsured motorist coverage to protect themselves from financial loss in case of an accident with an uninsured driver.

Overall, South Dakota drivers benefit from relatively affordable car insurance rates due to the state’s favorable statistics. But drivers still need to ensure they have enough coverage for their needs and budget. Comparing quotes from multiple insurers is the best way to find the right coverage at the right price.

The 10 Largest South Dakota Car Insurance Companies

South Dakota drivers have many options when choosing a car insurance provider. The following are 10 of the largest auto insurance companies in South Dakota based on the number of insured drivers:

1. State Farm – State Farm insures more drivers in South Dakota than any other carrier. It offers a wide range of coverage options and has a good reputation for customer service and claims handling.
2. Farmers Insurance – Farmers Insurance is another large provider in the state, offering competitive rates and a variety of discounts. Their agents are well-established throughout South Dakota.
3. American Family Insurance – As a Wisconsin-based insurer, American Family has a large presence in the Midwest, including South Dakota. They are known for personalized service and a wide range of products.
4. Allstate – Allstate is one of the largest national carriers. They offer many discounts and usage-based programs to help lower premiums. Allstate agents can be found in most major cities in South Dakota.
5. Progressive – Progressive is a national carrier known for their simple policies and name-your-price online quoting tool. They do not have local agents but handle claims and service online and by phone.
6. Auto-Owners Insurance (AUI) – AUI is part of a larger Michigan-based group. They focus on homeowners and auto insurance and have a reputation for quality service.
7. Liberty Mutual – Liberty Mutual is a large national carrier that offers coverage for homes, autos and other insurance needs. They have local agents to assist with policies and claims.
8. GEICO – GEICO is known for their large selection of discounts that can help lower premium costs. They also offer 24/7 claims reporting through their mobile app and website.
9. Nationwide – Nationwide has a large agency force in South Dakota to provide personalized service. They offer a wide range of discounts and usage-based programs.
10. MetLife Auto & Home – MetLife Auto & Home provides auto insurance through a network of local independent agents. They aim to offer simple policies and quick claims service.