South Dakota residents spend roughly $1,269 annually for full coverage auto insurance and $383 for minimum coverage, based on a 40-year-old driver with good credit and no infractions. South Dakota ranks 18th for full coverage and 3rd for minimum coverage among all jurisdictions, with costs 13% and 44% below national standards respectively.
Average Cost of Car Insurance in South Dakota
Updated: October 17, 2025
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Key Takeaways
Car insurance costs range from $336 to $3,480 per year depending on your chosen coverage, driving profile and location.
With rankings of third for minimum coverage and 18th for full coverage, South Dakota offers some of the most budget-friendly car insurance rates in the nation.
Find the cheapest car insurance in South Dakota by deciding on coverage beforehand, researching costs and companies, and comparing multiple quotes.
Average Car Insurance Cost In South Dakota
| Full Coverage | $106 | $1,269 |
| Minimum Coverage | $32 | $383 |
Moving from liability-only to comprehensive coverage costs an extra $886 per year, equaling $74 monthly. Your specific rates will fluctuate according to personal characteristics, driving background and coverage decisions.
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Average South Dakota Car Insurance Cost by Category
The most dramatic rate difference in South Dakota comes from credit scores - impaired credit drivers pay $290 monthly while adults with good credit pay just $101. Personal characteristics shape South Dakota's car insurance costs dramatically.
Young drivers fall in the middle at $241 monthly, suggesting South Dakota insurers weight credit more heavily than age. Older car owners enjoy the state's best rates at $92 monthly, benefiting from both low base rates and vehicle depreciation.
| Young Drivers | $81 | $241 |
| Adult Drivers | $31 | $101 |
| Senior Drivers | $44 | $120 |
| Drivers With An Accident | $46 | $153 |
| Drivers With A DUI | $58 | $201 |
| Drivers With A Speeding Ticket | $38 | $125 |
| Drivers With Bad Credit | $120 | $290 |
| Drivers With Low Income | $74 | $176 |
| Drivers With Newer Cars | $45 | $153 |
| Drivers With Old Cars | $28 | $92 |
South Dakota's rural market creates affordable base rates for most drivers, but credit scores generate the largest premium penalties in this otherwise budget-friendly state.
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Average South Dakota Car Insurance Cost by Company
Progressive provides exceptional value in South Dakota at $55 monthly for full coverage, while GEICO prices significantly higher at $99 monthly. South Dakota shows considerable price variations between insurance carriers, with full coverage premiums ranging from $55 to $99 monthly across major companies.
South Dakota drivers can achieve substantial annual savings of approximately $524 by comparison shopping effectively.
| Progressive | $14 | $55 |
| Farmers Mutual Ins Co of NE | $14 | $62 |
| State Farm | $18 | $91 |
| Geico | $27 | $99 |
| Auto Owners | $33 | $95 |
Average South Dakota Car Insurance Cost by City
Brookings offers South Dakota's best rates at $86 monthly for full coverage, while Glencross reaches $135 monthly - a modest $49 spread reflecting the state's rural consistency. South Dakota maintains relatively stable pricing across most communities.
Even the most expensive cities remain affordable compared to national averages, benefiting from low crime and rural driving conditions. Compare rates for your city below.
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Is South Dakota Car Insurance Expensive?
South Dakota ranks third for minimum coverage and 18th for full coverage affordability among the 50 states and Washington, D.C., making it one of the more budget-friendly states. This reflects statewide averages, and affordability rankings for your city differ from the rest of the United States.
Why Is Car Insurance More Expensive In South Dakota?
Below we'll explore the reasons for South Dakota's high car insurance rates:
Economic Factors and Credit Impact
South Dakota allows insurance companies to examine credit scores when determining rates, with drivers having bad credit paying more per year than those with good credit. The state's rural economy can impact residents' credit scores, affecting insurance rates. Economic fluctuations in agriculture and other industries influence the overall insurance risk profile.
Frequent Hail Storms and Severe Weather
South Dakota recorded the largest hailstone in U.S. history in Vivian on June 23, 2010, with a diameter of eight inches. The state faces regular severe thunderstorms with large hail as the main threat, causing car damage. Hail damage to cars is covered by comprehensive auto insurance policies, making this coverage important for South Dakota drivers.
Car Theft and Property Crime
Car theft rates are higher in populated cities like Sioux Falls and Rapid City compared to rural areas. Urban areas experience higher rates of theft and vandalism, contributing to increased insurance costs. However, the state's overall rural nature helps keep comprehensive coverage costs manageable.
Brutal Winter Conditions and Severe Weather
South Dakota experiences brutal winter conditions with temperatures hovering near 0°F. The state sees up to 38 inches of snow per year, with polar atmospheric air masses bringing cold, dry air that creates hazardous winter driving conditions. Black ice is common throughout the state, and strong winds can create whiteouts, making driving very dangerous during winter storms.
Second-Worst State for Drunk Driving
In 2024, South Dakota ranked as the second-worst state for drunk driving incidents, with intoxicated drivers accounting for over a third of traffic fatalities. The state has high numbers of DUI arrests per licensed drivers. South Dakota drivers with a DUI conviction pay more for car insurance than drivers with clean records.
Agricultural Equipment and Farm Car Accidents
South Dakota has thousands of operating farms totaling millions of acres, making farm equipment accidents more common. Farm-related injuries occur regularly, including tractor rollovers and auto collisions. Farm equipment crashes occur on high-speed roads and can involve unfamiliar drivers not expecting slow-moving agricultural equipment.
Limited Urban Areas and Emergency Services
South Dakota's sparse population density means limited emergency services coverage in rural areas. Large cities like Sioux Falls have higher car insurance rates than rural areas due to higher crime rates and accident frequencies. However, rural areas face challenges with longer emergency response times and limited medical facilities.
Wildlife Collision Risks
South Dakota's abundant wildlife population creates collision risks, particularly with deer and other large animals. The state's rural highways and farming areas increase encounters between cars and wildlife, especially during migration seasons. Comprehensive coverage is important for protecting against animal collision damage.
Sturgis Motorcycle Rally Traffic Risks
The annual Sturgis Motorcycle Rally presents unique challenges with thousands of motorcycle enthusiasts creating heightened traffic risks. The event increases traffic volume and presents elevated risks of alcohol-related accidents during festivities. The influx of visitors unfamiliar with local roads compounds accident risks during the rally period.
How To Lower Car Insurance Costs In South Dakota
Want to save even more on those already-low premiums? Here's how to lower your car insurance costs:
- 1
Decide on coverage needs beforehand
Deciding on your coverage needs is important so you're not oversold on too much coverage. Consider your financial situation, driving habits, car details and risk tolerance when making this decision.
- 2
Research costs and discounts
To save money for your profile, know the average costs for your preferred coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance bundles for the most balanced perspective.
- 3
Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4
Compare quotes through multiple means
Compare quotes from multiple companies to find the best deal possible. Use different methods of getting quotes, such as comparison sites and independent agents, since pricing varies widely by method.
Cost of Car Insurance in South Dakota: Bottom Line
South Dakota car insurance costs are among the most affordable in the United States, but smart shopping can still help you save even more. Decide on your coverage needs beforehand, do thorough research and compare quotes from the right insurers.
Cost of Car Insurance in South Dakota: FAQ
Below are answers to frequently asked questions about South Dakota car insurance costs:
How much is South Dakota car insurance per month?
South Dakota car insurance costs $32 for minimum coverage and $106 for full coverage policies. Rates range from $28 to $290 monthly depending on your unique driver profile and coverage choice.
What factors affect South Dakota car insurance costs?
Primary factors include driving history, age and location. Drivers with accidents, violations or those who are young face higher rates, while urban areas cost more than rural ones. Car type, coverage amounts, credit score and annual mileage also impact premiums, along with factors like gender and marital status in some states.
Why is South Dakota car insurance so expensive?
South Dakota experiences brutal winter conditions with up to 38 inches of snow annually and recorded the largest hailstone in U.S. history. The state ranks second-worst nationally for drunk driving incidents and has 81% of crash deaths occurring on rural roads. Despite these risks, South Dakota maintains competitive rates due to low population density, though agricultural equipment encounters create unique hazards.
How expensive is South Dakota car insurance?
With rankings of third for minimum coverage affordability and 18th for full coverage, South Dakota stands out as one of the more budget-friendly destinations for auto insurance across the U.S.
How We Determined South Dakota Car Insurance Costs
We used the following profile and modifications of this profile to determine South Dakota auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- National Severe Storms Laboratory . "Hail Basics ." Accessed October 18, 2025.
