Cheap Car Insurance in South Dakota: Finding affordable car insurance in South Dakota doesn’t have to be a stressful experience. Whether you’re new to the state or just shopping around for better rates, understanding how the process works can help you save a substantial amount of money. This guide will walk you through everything you need to know about getting cheap car insurance in South Dakota and how to get a free quote that fits your budget.
Understanding Car Insurance Requirements in South Dakota
Every driver in South Dakota is required by law to carry a minimum level of car insurance. These requirements ensure that drivers can cover damages and medical costs in the event of an accident. At a minimum, South Dakota drivers must have:
Liability coverage: This covers damages and injuries caused to others if you’re at fault in an accident.
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $25,000 for property damage
Uninsured/underinsured motorist coverage: This protects you if you are involved in an accident with someone who doesn’t have insurance or doesn’t have enough to cover the damages.
Failing to meet these requirements can lead to fines, license suspension, and other penalties.
Factors That Affect Car Insurance Rates in South Dakota
Insurance premiums vary based on several factors. Knowing what influences your rate can help you understand where to make adjustments:
- Driving History: A clean driving record with no accidents or violations often leads to lower rates.
- Age and Gender: Younger drivers, particularly teens, tend to pay higher premiums, as they are considered higher-risk. Gender also plays a role, with males, especially under 25, typically paying more.
- Vehicle Type: The make and model of your car influence your rate. High-end or newer cars often come with higher premiums due to their repair costs and likelihood of theft.
- Location: Where you live in South Dakota impacts your insurance rate. Urban areas may have higher rates due to the increased risk of accidents and theft compared to rural areas.
Why Car Insurance is Expensive in South Dakota
South Dakota has unique factors that contribute to insurance costs. While rural areas tend to have fewer accidents, the harsh winters, icy roads, and unpredictable weather conditions can lead to increased accident claims. Additionally, sparse populations in some areas mean longer response times for emergency services, which can also affect premiums.
How to Find Cheap Car Insurance in South Dakota
There are several ways to find affordable car insurance in South Dakota:
- Shop Around: Insurance rates can vary significantly from one provider to another. Don’t settle for the first offer you receive.
- Use Comparison Tools: Online platforms allow you to compare multiple quotes at once. This saves time and ensures you’re getting the best deal.
- Contact Local Providers: While national chains are well-known, local insurance companies may offer competitive rates, especially for long-term residents.
Top Companies Offering Affordable Car Insurance in South Dakota
Several national and local insurance companies offer competitive rates for South Dakota drivers. Some of the top options include:
- State Farm: Known for its excellent customer service and wide range of discounts.
- Geico: Often praised for its low rates and user-friendly online tools.
- Progressive: Offers unique discounts, including those for usage-based insurance programs.
Cheapest Car Insurance Companies in South Dakota
| Company | Avg. Annual Premium |
|---|---|
| Nationwide | $1,372 |
| Farmers | $1,410 |
| State Farm | $1,422 |
| GEICO | $1,579 |
| USAA | $1,610 |
| Allstate | $1,847 |
| Progressive | $2,386 |
South Dakota auto insurance laws
Car insurance is mandatory in almost every state, including South Dakota. If you choose the legal minimum coverage level in South Dakota, expect to pay an average of $254 annually. This expenditure is less expensive than the nationwide average by 53%.
State minimum coverage
In order to drive legally in the state of South Dakota, you must carry at least the minimum liability limits listed below:
Liability
- Bodily Injury $25,000 per person
- Bodily Injury $50,000 per accident
- Property Damage $25,000 per accident
Uninsured/Underinsured Motorist
- Bodily Injury $25,000 per person
- Bodily Injury $50,000 per accident
Optional coverage in South Dakota (varies by carrier):
- Comprehensive
- Collision
- Loan/Lease Payoff
- Medical Payments
- Rental Car Reimbursement
- Roadside Assistance
- Accidental Death
- Total Disability
If you opt for better coverage, you can choose a policy with comprehensive and collision, which will protect against the costs of car accidents, theft, vandalism, or weather incidents. But better coverage comes with a cost: in South Dakota, a comprehensive insurance policy with a $1,000 deductible costs $1,316, 418% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay 585% more than you would for basic coverage.
South Dakota car insurance premiums by rating factor
Your rates are determined by a number of individual factors, including your coverage level, driving history, location, and more. Explore average premium costs by rating factor below to get a better sense of how much you should be paying for auto insurance in South Dakota.
Cheap auto insurance in South Dakota for minimum coverage
Forgoing full coverage for liability-only at the state minimum level will make your car insurance significantly cheaper. In South Dakota, the average cost for minimum coverage is $21 per month, or $254 yearly — a savings of $1,485 compared to full coverage.
Cheap auto insurance in South Dakota for minimum coverage
| Company | Avg. Annual Premium |
|---|---|
| Progressive | $191 |
| USAA | $212 |
| GEICO | $269 |
| State Farm | $271 |
| Farmers | $333 |
| Nationwide | $360 |
| Allstate | $420 |
Cheap auto insurance in South Dakota with bad credit
Your credit history is an important factor in determining your car insurance rates. Many carriers see those with a poor credit score as being higher risk, meaning you could pay more for your policy. On average, South Dakota drivers with poor credit pay 61% more per year than those with exceptional credit. Have a look at some common rates by credit tier below.
Cheapest carrier for bad credit in South Dakota
| Company | Avg. Annual Premium |
|---|---|
| State Farm | $7,453 |
| Progressive | $4,021 |
| USAA | $3,171 |
| Allstate | $2,743 |
| Farmers | $2,022 |
| Nationwide | $1,946 |
| GEICO | $1,930 |
Cheap auto insurance in South Dakota with an at-fault accident
Your driving history plays a big part in how much you pay. Insurance companies look for previous accidents for which you have been at fault to gauge the level of risk you pose as a customer. An at-fault accident in recent years could see your car insurance rates increase by as much as $649 per year.
Safe driver discounts
In addition to having a cheaper premium, some companies offer a safe driving discount. While the amount varies based on your company, it can range between 5 and 10%.
Cheapest carriers for at fault accidents in South Dakota
| Company | Avg. Annual Premium |
|---|---|
| State Farm | $1,711 |
| Farmers | $1,830 |
| USAA | $2,071 |
| Nationwide | $2,196 |
| GEICO | $2,385 |
| Allstate | $2,487 |
| Progressive | $3,427 |
Cheap auto insurance for young drivers in South Dakota
Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In South Dakota, teen drivers pay especially high rates: $4,515 per year — $281 less than the nationwide average and over twice as much as a typical South Dakota driver.
Cheapest Carriers for teen drivers in South Dakota
| Company | Avg. Annual Premium |
|---|---|
| Nationwide | $3,826 |
| USAA | $3,996 |
| State Farm | $4,321 |
| GEICO | $4,329 |
| Farmers | $4,869 |
| Progressive | $8,095 |
| Allstate | $8,596 |
South Dakota auto insurance rate by violation
In South Dakota, a bad driving record will cause your rates to skyrocket. If you receive a ticket or citation, your auto insurance premiums will probably rise. By how much depends on the violation, your insurer’s pricing standards, and differing local insurance regulations and risks. That’s why tickets may have a different impact on insurance in your state compared to the national average. Car insurance premiums typically increase by 93% after a DUI and 43% after a speeding ticket.
See below average auto insurance rates in South Dakota after a few common citations.
Rates by violation in South Dakota
| Accident/Violation | Avg. Annual Premium | % Rate Increase | $ Rate Increase |
|---|---|---|---|
| One Med/PIP claim | $1,607 | 0% | $0 |
| None | $1,607 | 0% | $0 |
| Not-at-fault accident | $1,641 | 2% | $35 |
| Two Med/PIP claims | $1,695 | 6% | $88 |
| One comp claim | $1,701 | 6% | $94 |
| Two comp claims | $1,751 | 9% | $144 |
| Failure to wear a seat belt | $1,772 | 10% | $165 |
| Driving without lights | $1,787 | 11% | $180 |
| Child safety restraint | $1,787 | 11% | $180 |
| Failure to show documents | $1,808 | 13% | $201 |
| Driving with expired registration | $1,828 | 14% | $221 |
| Driving too slowly | $1,840 | 15% | $233 |
| Wrong way/wrong lane | $1,850 | 15% | $243 |
| Speeding 6 – 10 MPH over limit | $1,855 | 15% | $248 |
| Failure to stop at a red light | $1,859 | 16% | $252 |
| Cell phone violation | $1,864 | 16% | $257 |
| Texting while driving | $1,864 | 16% | $257 |
| Illegal turn | $1,865 | 16% | $258 |
| Failure to yield | $1,865 | 16% | $258 |
| Following too closely | $1,865 | 16% | $258 |
| Improper passing | $1,871 | 16% | $264 |
| Speeding 11 – 15 MPH over limit | $1,875 | 17% | $268 |
| Speeding 16 – 20 MPH over limit | $1,886 | 17% | $279 |
| At-fault accident – less than $1000 | $1,924 | 20% | $317 |
| Operating a vehicle without permission | $1,934 | 20% | $327 |
| In 65 MPH zone | $1,946 | 21% | $339 |
| Speeding in school zone | $1,992 | 24% | $385 |
| Speeding 21 – 25 MPH over limit | $2,035 | 27% | $428 |
| Passing school bus | $2,062 | 28% | $456 |
| Open container | $2,082 | 30% | $475 |
| At-fault accident – $1000-$2000 | $2,171 | 35% | $564 |
| At-fault accident – greater than $2000 | $2,211 | 38% | $604 |
| Reckless driving | $2,649 | 65% | $1,042 |
| Driving with a suspended license | $2,692 | 68% | $1,085 |
| Refusal to submit to a chemical test | $2,832 | 76% | $1,226 |
| Racing | $2,879 | 79% | $1,272 |
| DUI | $2,948 | 83% | $1,341 |
| Leaving scene of an accident/hit and run | $3,022 | 88% | $1,415 |
South Dakota DUI laws
In South Dakota, a DUI offense can increase your annual car insurance premium by an average of $1,225. That’s 31% more than the national average rate hike after a DUI. Finding affordable auto insurance in the wake of a DUI violation isn’t simple. In fact, a DUI often brings about a bigger premium increase than any single road violation — more than an at-fault accident, racing, or reckless driving.
Low-cost car insurance after a DUI in South Dakota
If you’re convicted of a DUI or DWI violation in South Dakota, it’s key to mull over each of your insurance choices carefully. Auto insurance premiums following a DUI can vary substantially by insurer. For example, the least expensive car insurance company with a DUI in South Dakota, State Farm, advertises annual rates 26% less than the statewide average insurance rate with a DUI. The second-cheapest insurer for auto insurance after a DUI in South Dakota is Farmers, while the priciest firm is GEICO, with prices 50% above average.
CAR INSURANCE RATES WITH DUI IN SOUTH DAKOTA — BY INSURER
Cheapest insurance companies in South Dakota for drivers with a DUI
| Company | Avg. Annual Premium |
|---|---|
| State Farm | $1,876 |
| Farmers | $2,117 |
| Progressive | $2,635 |
| Nationwide | $2,832 |
| USAA | $3,069 |
| Allstate | $3,081 |
| GEICO | $3,816 |
Rates by city
Car insurance companies calculate your rate based on many factors, the location of the vehicle being an important one. The cheapest car insurance is found in ?, South Dakota, and the most expensive in ?, South Dakota.
Have a look at the table below to see average car insurance costs in some of South Dakota’s biggest cities.
Cheapest rates by city in South Dakota
| City | Avg. Annual Premium |
|---|---|
| Brookings | $1,356 |
| Sioux Falls | $1,377 |
| Watertown | $1,378 |
| Aberdeen | $1,394 |
| Mitchell | $1,464 |
Car insurance price trends in South Dakota
In South Dakota, average annual auto insurance costs increased by $138 in the past year. A typical South Dakota driver pays an average of $1,578 per year.
The recent pricing trend in South Dakota leans closely to national car insurance costs. The steepest decrease occurred from 2017 to 2018, while the highest surge took place from 2018 to 2019. At the same time, car insurance rates across the United States have stayed relatively steady in the past few years, moving from $1,521 in 2018 to $1,529 in 2021.
SOUTH DAKOTA CAR INSURANCE RATE TRENDS
| Year | Avg. Annual Premium — South Dakota | Yearly Change — South Dakota | Avg. Annual Premium — US | Yearly Change — US |
|---|---|---|---|---|
| 2021 | $1,578 | $138 | $1,529 | $46 |
| 2020 | $1,440 | -$301 | $1,483 | -$61 |
| 2019 | $1,741 | $340 | $1,544 | $23 |
| 2018 | $1,401 | -$395 | $1,521 | $84 |
| 2017 | $1,796 | $234 | $1,437 | $69 |
| 2016 | $1,562 | -$323 | $1,368 | $88 |
| 2015 | $1,885 | $216 | $1,280 | $51 |
| 2014 | $1,669 | $155 | $1,229 | $34 |
| 2013 | $1,514 | -$63 | $1,195 | -$80 |
| 2012 | $1,577 | $323 | $1,276 | $82 |
Comparing Local vs. National Insurance Providers
Local insurance companies may offer more personalized service and rates tailored to specific regions in South Dakota. However, national providers typically offer more comprehensive options and discounts. When comparing, consider what’s more important to you—personal service or savings.
Discounts to Lower Your Insurance Premium
Most insurance companies offer various discounts that can significantly reduce your premium:
- Good Driver Discounts: Drivers with no accidents or violations can enjoy lower rates.
- Multi-Policy Discounts: Bundling your car insurance with other policies like home or renters’ insurance can lead to savings.
- Defensive Driving Courses: Completing an approved driving course can lower your premium, especially for older drivers.
Understanding Deductibles and Their Impact on Premiums
Your deductible is the amount you pay out of pocket before your insurance kicks in. Generally, choosing a higher deductible will lower your monthly premium. However, it’s important to choose a deductible you can comfortably afford in the event of an accident.
Tips to Maintain Affordable Car Insurance in South Dakota
- Keep a Clean Driving Record: Avoid accidents and traffic violations to keep your rates low.
- Consider Usage-Based Insurance: Some companies offer discounts based on your actual driving habits. If you drive less, you could save more.
- Pay Premiums Upfront: Many insurers offer a discount if you pay your annual premium upfront instead of in monthly installments.
The Role of Credit Scores in Determining Car Insurance Rates
In South Dakota, your credit score plays a significant role in determining your car insurance premium. A higher credit score can result in lower rates, as insurers consider people with good credit less likely to file claims. If your credit score is low, work on improving it by paying off debts and avoiding new credit lines.
The Importance of Comparing Free Quotes
Never settle for the first quote you receive. By comparing multiple quotes from different companies, you can find the best deal that meets your coverage needs. It’s worth the time and effort to research options to avoid overpaying for your car insurance.
How to Get a Free Quote for Car Insurance in South Dakota
Getting a free car insurance quote is easier than ever. Most insurance companies offer online quote tools where you can input your details and receive a quote within minutes. You’ll typically need to provide:
- Your personal information (name, address, etc.)
- Details about your vehicle (make, model, year)
- Driving history
- Current insurance coverage (if applicable)
What to Watch Out for When Comparing Quotes
When reviewing quotes, be mindful of the fine print. Some policies may have hidden fees or exclusions that aren’t immediately clear. Always read the terms carefully to ensure you’re comparing apples to apples.
FAQs about Car Insurance in South Dakota
What are the minimum car insurance requirements in South Dakota?
In South Dakota, drivers are required to have at least the following minimum coverage: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident. This is often referred to as 25/50/25 coverage.
Is uninsured motorist coverage mandatory in South Dakota?
Yes, uninsured motorist coverage is mandatory in South Dakota. This coverage helps pay for damages caused by a driver who does not have insurance. The minimum limits are the same as the liability coverage minimums, at 25/50/25.
How does South Dakota’s no-fault insurance work?
South Dakota is not a no-fault state. This means that the driver who is at fault for an accident is responsible for paying the damages. In contrast, in a no-fault state, each driver’s insurance would cover their own injuries and damages without regard to who caused the accident.
What factors influence car insurance rates in South Dakota?
Several factors can affect your car insurance rates in South Dakota, including your driving history, age, the type of vehicle you drive, and your geographical location within the state. Other factors like your credit score and marital status may also impact your premiums.
Can I get discounts on car insurance in South Dakota?
Yes, many insurers offer discounts that can help lower your car insurance premiums. Common discounts include those for safe driving, being a good student, having multiple cars on one policy, or installing anti-theft devices in your vehicle. Check with your insurance provider to see what discounts are available.
What should I do if I’m involved in a car accident in South Dakota?
After ensuring everyone’s safety and calling for medical help if needed, it’s important to report the accident to the police, especially if it involves significant damage or injuries. Exchange insurance information with the other driver and document the accident scene with photos if possible. Notify your insurance provider as soon as you can to begin the claims process.
Conclusion
In summary, securing car insurance in South Dakota is not just a legal requirement; it’s a crucial step in safeguarding yourself, your finances, and your vehicle against unexpected incidents. The importance of having adequate coverage cannot be overstated, as it provides peace of mind and financial security in the face of accidents and theft.
When searching for the best car insurance, it’s essential to compare quotes and explore various options to find a policy that offers comprehensive coverage at a competitive price. Remember, the right car insurance policy isn’t just about meeting state requirements—it’s about ensuring that you’re well-protected in every journey you undertake.
With thoughtful research and careful consideration, you can secure a policy that fits your needs and budget perfectly.
References
For more detailed insights and to validate the information discussed in this guide on the best car insurance options in South Dakota, consider exploring the following reputable sources:
- National Association of Insurance Commissioners (NAIC) – Access comprehensive data and compare national insurance standards with South Dakota’s policies to understand market trends and regulatory compliance. Check out their resources here.
- Insurance Information Institute – This site offers a wealth of information on various types of car insurance coverages, safety tips, and consumer insurance guides that can be beneficial for South Dakota residents. Click here for more details.
- Consumer Reports – Known for its unbiased reviews and in-depth research, Consumer Reports provides useful information on choosing the best car insurance companies and plans tailored to your needs in South Dakota. Explore their articles here.
Each of these resources provides valuable, in-depth information that can help you make well-informed decisions about car insurance in South Dakota.
