South Dakota Minimum Coverage Car Insurance: Requirements and Costs (November 2024)

Name: South Dakota Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Item: South Dakota Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Author: Mark Fitzpatrick

South Dakota's minimum coverage liability limits are 25/50/25. The average state minimum car insurance in South Dakota is $385 annually, or about $32 monthly.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Nica Gonzales-Villaraza

Updated: October 29, 2024

Advertising & Editorial Disclosure

South Dakota's minimum car insurance requirements stipulate that drivers must have $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident. Additional coverage for uninsured/underinsured motorists is also required, with the same limits as bodily injury liability: $25,000 per person and $50,000 per accident. As for fault in an accident, South Dakota is an at-fault state, meaning that the driver found to be responsible for the accident is also liable for the damages.

The cost of state minimum car insurance in South Dakota is around $32 per month for a 40-year-old driver. You can compare policies to find the cheapest car insurance in South Dakota.

TABLE OF CONTENTS

South Dakota Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in South Dakota
Cheapest Companies in South Dakota for Minimum Coverage
Add-On Coverages in South Dakota
Penalties for Driving Without Insurance in South Dakota
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the South Dakota Department of Insurance to give you the most accurate cost data for a range of South Dakota drivers.

These rates reflect the cost of minimum coverage car insurance requirements in South Dakota as of November 2024.

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South Dakota Minimum Coverage Car Insurance Requirements

In South Dakota, you are required to carry minimum coverage auto insurance to legally operate a vehicle. This includes the following coverage amounts:

$25,000 for bodily injury liability per person
$50,000 for bodily injury liability per accident
$25,000 for property damage liability per accident
$25,000 uninsured motorist bodily injury per person
$50,000 uninsured motorist bodily injury per accident

The state of South Dakota operates under a fault-based insurance system. This means that the driver found to be at fault for an accident is responsible for covering the damages through their insurance. As a fault state, the amount of coverage you carry can significantly affect your premium.

ARE COLLISION AND COMPREHENSIVE COVERAGE REQUIRED IN SOUTH DAKOTA?

South Dakota does not require drivers to carry collision or comprehensive insurance as part of minimum coverage, but it's recommended for drivers with newer or higher-value vehicles who want protection beyond minimum coverage. Lenders and leasing companies usually mandate both coverages if you finance or lease a vehicle. This ensures that the vehicle can be repaired or replaced if it encounters damages beyond the usual wear and tear.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if you were hit by an animal
	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased

The table reflects South Dakota's minimum car insurance requirements, including bodily injury and property damage. Coverage specifics follow the policy's terms and conditions.

Average Cost of Minimum Coverage Car Insurance in South Dakota

While many factors influence the cost of minimum car insurance, age is often the most significant. In South Dakota, drivers aged 22 to 29 face the highest premiums, because younger drivers are usually considered higher risk by insurance companies.

The table below illustrates the average annual and monthly costs of minimum coverage in South Dakota by age group.


22-29	$477	$40
30-59	$385	$32
60 +	$380	$32

Cheapest Companies for Minimum Coverage Car Insurance in South Dakota

If you are looking for minimum coverage auto insurance in South Dakota, Farmers Mutual of Nebraska and American Family offer the most budget-friendly rates.

Farmers Mutual of Nebraska: $187 per year and $16 per month
American Family: $243 per year and $20 per month

While finding an economical solution for minimum coverage auto insurance is crucial, remember that selecting the best car insurance in South Dakota is based on your individual needs.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


Farmers Mutual of Nebraska	$187	$16
American Family	$243	$20
State Farm	$259	$22
Kemper	$276	$23
Progressive	$313	$26
Auto-Owners Insurance Co	$329	$27
GEICO	$365	$30
Western National	$413	$34
Iowa Farm Bureau	$429	$36
Nationwide	$550	$46
Allstate	$626	$52
Farmers	$627	$52

Optional Add-On Coverages in South Dakota

Optional add-on coverages you can get in South Dakota include comprehensive, collision, uninsured/underinsured motorist, medical payments and rental reimbursement coverage. These options protect against various financial risks from accidents, theft, and other damages. Understanding how much car insurance you need can help determine their importance for you.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.	Damage to your vehicle if you are at fault or damages that exceed policy limits.
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers regardless of who's at fault.	Vehicle damage or injuries to the other driver.
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down.	Cost of parts or repairs needed after the tow.
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen.	Vehicle depreciation or overdue loan payments.
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event.	Fuel, insurance or other rental extras.
Collision Coverage	Repairs to your car after an accident, regardless of fault.	Damage due to theft, vandalism or natural disasters.
Comprehensive Coverage	Repairs to non-collision damages from events like theft, fire or hail.	Damages from a collision or personal injuries.
Towing and Labor Coverage	Towing and basic roadside-assistance labor costs at the site of your vehicle's breakdown.	More extensive repairs needed at a garage.
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems.	Original parts that came with your vehicle.
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident.	Non-accidental death or injuries.
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars.	Regular use like your daily commute.

Penalties for Driving Without Insurance in South Dakota

The cost of a ticket for driving without insurance in South Dakota can vary based on whether it’s your first offense or a repeat violation. First-time offenders may face a lighter set of penalties, while those with prior incidents could encounter harsher consequences. Driving without insurance holds significant financial and legal risks.

Penalties may include:

Monetary fine: You must pay a fine for violating the law. The fine is higher if you are a repeat offender.
License suspension: Your license is suspended, and you have to pay a reinstatement fee
SR-22 requirement: You might need to file an SR-22 — a document proving that you carry the required insurance — which will raise your insurance premiums for years.
Vehicle registration suspension: Your vehicle registration is suspended.
Potential vehicle impoundment: Your vehicle is impounded, and there are associated fees
Jail time: This is particularly likely if you are involved in an uninsured accident

South Dakota drivers must adhere to state regulations by maintaining minimum vehicle coverage. Failing to comply leads to penalties and puts you at financial risk in case of an accident.

What to Do if Your Policy Is Canceled

After a car insurance policy cancellation in South Dakota, drivers should seek new coverage and avoid driving uninsured. It's essential to contact an insurance agent to explore options, negotiate the reinstatement of the policy or shop for a new one.

The South Dakota DMV monitors insurance status through an electronic verification system. They will be notified if you are driving without insurance, which can lead to penalties.

For those having difficulties obtaining insurance, it is wise to look for insurers that specialize in covering high-risk drivers. While South Dakota does not have a specific state program, alternatives such as the South Dakota Automobile Insurance Plan are available.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in South Dakota might have been canceled for several reasons:

Non-Payment: If you did not pay your premiums on time, your insurer likely canceled your coverage.
License Suspension: Your policy can be canceled if your driver's license is suspended or revoked.
Fraud or Misrepresentation: Providing false information or hiding important facts can lead to the cancellation of your insurance.
Too Many Claims: Filing too many claims in a short period might signal high risk, causing insurers to cancel your policy.
Violation of Policy Terms: If you violate any terms of your insurance policy, like using your car for business without proper coverage, your insurer might cancel your policy.

You should maintain a clean driving record and pay your premiums to keep your coverage active.

FAQ: South Dakota Minimum Coverage Car Insurance

Here we answer frequently asked questions to ensure you meet the necessary coverage to drive legally in South Dakota.

What is the minimum car insurance coverage in South Dakota?

The minimum car insurance coverage in South Dakota requires drivers to have $25,000 in bodily injury liability per person, $50,000 per accident and $25,000 in property damage liability. Additionally, motorists must carry uninsured/underinsured motorist coverage at the same limits of $25,000 per person and $50,000 per accident.

Why does South Dakota require minimum automobile liability coverage for motorists?

South Dakota mandates minimum automobile liability coverage to ensure that drivers can cover the costs of damages or injuries they may cause to others in an accident. This requirement protects both the at-fault driver from potential financial ruin and the victims from uncompensated losses due to a motor vehicle collision.

Do you need comprehensive insurance in South Dakota?

In South Dakota, you aren't legally required to have comprehensive insurancebut it's advised if you want protection from non-collision incidents. State minimum coverage does not cover events like theft, vandalism or natural disasters. Lenders may require it for financed vehicles to safeguard their investment.

What happens if you drive uninsured in South Dakota?

Driving uninsured in South Dakota can lead to significant penalties, including fines starting from $100, a driver's license suspension and potential jail time. The state may also require you to file an SR-22, a certificate of insurance, proving you carry the minimum required coverage for a specified period, usually three years, which can increase your insurance premiums.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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