To help you find the best car insurance in South Dakota that suits your preferences, MoneyGeek ranked the top car insurance companies in the state based on affordability, customer service, price and more. Factors such as driving record, location and age play an essential role in determining car insurance premiums. If you want the best rates for your auto insurance, comparing several quotes can land you the most affordable option for your needs. MoneyGeek's rankings reveal a potential savings of $453 when comparing car insurance costs from top-rated companies in South Dakota.
The Best Cheap Car Insurance in South Dakota for 2021
The Cheapest and Best Car Insurance in South Dakota
Drivers looking for the cheapest car insurance in South Dakota should consider a liability-only policy. It has basic coverage that meets the state minimum car insurance requirements.
Based on MoneyGeek’s study, the cheapest car insurance companies for South Dakota drivers with minimum coverage are:
- USAA: $172 per year (only available to current and former military members)
- Farmers Mutual of Nebraska: $257 per year
The most expensive car insurance for minimum coverage is from American Family, which has an average annual rate of $461.
Average Cost for Minimun Liability Coverage
These prices are average rates in South Dakota and should only be used as a guide for comparing auto insurance prices between carriers.
These prices are only estimates based on rates for an average South Dakota driver and should not be used to compare insurance prices.
A minimum coverage policy is the cheapest available option in South Dakota and only includes bodily injury, property damage liability insurance and uninsured/underinsured motorist coverage. Drivers looking for a policy with additional protection for the cost of damages to their own vehicle or higher liability costs should consider a full coverage policy.
Full coverage policies with higher liability limits and comprehensive and collision insurance provide protection against most road and non-road accidents in South Dakota. They cost more than minimum coverage but offer protection for damages to your car. If you want to find the best auto insurance policy, compare quotes from different insurers.
Based on average rates, the cheapest car insurance companies for full coverage in South Dakota are:
- USAA: $561 per year (only offered to current and former military members)
- State Farm: $675 per year
Progressive, which has an average rate of $1,014 per year, is the most expensive carrier for a full coverage policy.
Average Comprehensive and Collision Rates in South Dakota
Individual premiums depend on the circumstances and needs of the driver and will be different from the examples provided. These rates are based on a policy with comprehensive and collision insurance that covers up to $100,000 for bodily injury per person, $300,000 for bodily injury per accident and $100,000 for property damage per accident.
The Best Car Insurance Companies in South Dakota for 2021
MoneyGeek ranked car insurance companies in South Dakota. The best carriers are:
- Best Overall: USAA
- Runner-up: Auto-Owners
MoneyGeek uses a specialized scoring system to identify the best car insurance companies. The scoring system comprises factors like affordability, customer satisfaction and financial strength.
To get the final ratings, MoneyGeek used a combination of unique pricing data, AM Best’s financial strength ratings and J.D. Power’s customer satisfaction study, which are industry standards for insurance company ratings. The overall scores are out of 100.
USAA ranked first in South Dakota because of its high rankings across categories. It is important to note that USAA policies are only available to current and former military members.
USAA is almost always one of the most affordable and top car insurance companies across the country. The same is true in South Dakota. The company also offers rewards to loyal clients. For example, you can get a discount if your parents are also USAA policyholders or if you garage your car on the military base.Read MoneyGeek's USAA auto Insurance Review
High ratings in user satisfaction and affordability helped Auto-Owners rank as the second-best car insurer in South Dakota. It is also worth considering for drivers not qualified for USAA.
Auto-Owners provide a 24/7 Road Trouble Service, which aims to help South Dakota policyholders stranded on the road because of a flat tire or dead battery. The company also offers a package that allows policyholders to add optional riders, such as coverage for identity theft, re-keying locks and replacing your cell phone.Read MoneyGeek's Auto-Owners Insurance Co auto Insurance Review
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
List of the Largest Insurance Companies in South Dakota
Based on market share, State Farm, Progressive and American Family are the largest car insurance companies in South Dakota. Market share refers to the number of premiums an insurer has written divided by the total number of premiums written in the state. Having a bigger market share does not guarantee the best car insurance rates. It does give security to drivers who value financial stability.
- CompanyMarket Share
How to Compare Cheap South Dakota Car Insurance Quotes Online
It is important to get personalized quotes from multiple carriers in South Dakota. Most auto insurance companies in the state allow interested drivers to get a reasonably accurate quote on their website.
Make sure you use a consistent coverage level and limit when comparing quotes. If you ask one company for a quote for a comprehensive and collision insurance policy with a $500 deductible, use similar requirements with other insurers.
Enter your ZIP code below to start comparing quotes. You can also check MoneyGeek’s price data and use them to determine which company’s website to visit.
USAA, Farmers Mutual of Nebraska and GEICO have the cheapest car insurance rates for the average driver. You can start your search by getting quotes from these carriers.
What Is the Average Cost of Car Insurance in South Dakota?
Car insurance costs differ from one company to another due to several unique factors. MoneyGeek’s average rates represent comprehensive and collision insurance costs for a 40-year-old male driver with a Toyota Camry and no accident history.
Your car insurance premium may vary from the state’s average costs based on your driving history, age, coverage level and location.
- Average Driver: $817
- DUI: $1,395
- Speeding Ticket: $941
- ** Poor Credit Score:** $1,273
- Seniors: $821
- Students: $2,020
A serious driving violation like a DUI will increase a driver’s car insurance rates in South Dakota. The average cost of auto insurance for a driver with a clean record is $817 per year. That rate increases to an average of $1,395 for drivers with a DUI.
The cheapest auto insurance carriers in South Dakota for drivers with a DUI and full coverage are:
- State Farm: $735 per year
- American Family: $820 per year
To compare, USAA and State Farm are the most affordable options for drivers without a DUI.
Average Car Insurance Rates With a DUI
According to the National Highway Traffic Safety Administration, in 2018, every 50 minutes, a fatal accident occurred due to drinking and driving. In South Dakota, the CDC reports that 2.7% of drivers reported driving after drinking too much in the last 30 days and 423 people were killed in alcohol-related crashes between 2009 and 2018.
A DUI can not only negatively impact your insurance rates but can result in jail time, even for first-time offenders. While every state is different, South Dakota takes DUIs very seriously. First offenders are charged with a Class 1 misdemeanor and all driving privileges are revoked for a minimum of 30 days. The punishment gets worse with repeat offenses. The above table provides an estimate of the insurance premium increase you can expect to see if you find yourself facing a DUI charge in South Dakota.
Getting a DUI doesn’t necessarily mean you’ll be paying an arm and a leg for insurance for the rest of your life. Since your rates could increase for several years, it’s best to shop insurance quotes regularly, maintain a good driving record and follow all DUI conviction requirements set by your state. Once the DUI is off your record, you may want to apply with a new insurance company to get a lower rate.
Even minor driving violations, such as tickets, can increase your car insurance rates in South Dakota. The average cost of auto insurance for drivers with a speeding ticket is $941 per year, which is $124 more than the average annual rate for those with clean driving records.
The cheapest car insurance company in South Dakota for drivers with a speeding ticket are:
- USAA: $644 per year (only available to military personnel)
- State Farm: $735 per year
USAA and State Farm are the cheapest options for drivers with clean driving history as well.
Average Car Insurance Rates With a Ticket
Distracted driving causes more than 100 fatalities a year in South Dakota, according to the National Highway Traffic and Safety Administration (NHTSA). A speeding or distracted driving ticket can lead to a large increase in insurance rates. If you’re penalized with a reckless driving ticket, your rates will rise. The above table provides the average cost of insurance per month for drivers in South Dakota who have a ticket on their record.
There’s no blanket increase in the extra premium you’ll pay if you get a speeding or distracted driving ticket. There’s also not a one-size-fits-all answer to how long it will stay on your record. Often, insurance companies will allow first-time offenders to participate in an online driver’s school to remove points from a record. It’s best to get a complete understanding of the real costs of distracted driving and buckle down on being safe behind the wheel.
South Dakota car insurers tend to charge drivers with poor credit scores higher rates. The average auto insurance price for drivers with bad credit is $1,273 per year. Drivers with healthy credit scores pay an average of $817 per year.
The cheapest car insurance companies for South Dakota drivers with poor credit and full coverage are:
- USAA: $1,005 per year (only available to military personnel)
- Farmers Mutual of Nebraska: $1,012 per year
Farmers Mutual of Nebraska has lower rates for drivers with poor credit than State Farm, which is the second most affordable option for those with good credit scores.
Average Car Insurance Rates for Drivers With Bad Credit
You may be wondering how your credit score is linked to your insurance premiums. Insurance companies look at your score and see that it represents your ability to pay your insurance premium on time. South Dakota ranks highly when it comes to credit scores, tieing North Dakota for the second-highest average FICO score in the nation at 727. However, drivers with a poor credit score can expect estimates similar to the above rates.
Poor credit history has been linked to more insurance claims, which is why those with bad credit often get higher premiums — the insurance company sees you as a higher risk to insure. The good news is there is always room to improve your credit score. Once your credit score increases, you can shop for new auto insurance to lower your rates and save money.
Seniors tend to have higher auto insurance rates than young adults and middle-aged drivers in South Dakota. The average rate for seniors is $821 per year. That is $4 more than the average annual rate for the average adult driver.
The cheapest car insurance companies in South Dakota for a senior driver with full coverage are:
- USAA: $608 per year (only offered to military members)
- State Farm: $648 per year
USAA and State Farm are also the most affordable companies for adult drivers in South Dakota.
Average Car Insurance Rates for Seniors
According to the NHTSA, more than 17.7% of fatal South Dakota accidents in 2017 were caused by drivers over the age of 65. While South Dakota doesn’t have specific laws and regulations in place for senior drivers, they’re subject to the state’s general rules of having to renew their license every five years and pass a vision test with each renewal. The state may also impose driving restrictions on senior drivers. Such restrictions may include no driving at night or only driving within 50 miles of home. Above are a few examples of monthly costs for senior auto insurance rates in South Dakota.
Seniors’ auto insurance rates are affected by a variety of factors, such as driving history, claims history and overall health. Finding cheap car insurance for seniors in South Dakota just requires shopping a variety of quotes to find what fits your driving habits best.
Young student drivers in South Dakota are usually charged far more than adult drivers because of risk and inexperience. The average annual auto insurance rate for students in the state is $2,020. That is more than double the average cost for adult drivers, which is $817 per year.
The cheapest car insurance companies in South Dakota for student drivers with full coverage are:
- Allstate: $1,560 per year
- State Farm: $1,984 per year
Although USAA has the cheapest rates for the average 40-year-old driver, Allstate has lower rates for student drivers in South Dakota.
Average Car Insurance Rates for Students
Like many states, South Dakota has implemented a graduated license plan for teens that has new young drivers following a strict licensing program before becoming fully licensed. Teens can get their first permit at age 14. Then, after 180 days, they can graduate to a Restricted Minor's Permit and then graduate into a full license six months later. Insurance is required from the instruction permit phase, but families can usually get a discount by adding a child to their existing policy.
Teens and student drivers in South Dakota can qualify for a variety of discounts offered to those with good grades, those in college and those who go to school at least 100 miles away from home and don’t regularly use their car.
The truth is that teen drivers simply lack the experience to be good drivers, which makes them a higher risk to insure. According to the Department of Public Safety, drivers under 19 years old account for 16% of drivers involved in crashes in South Dakota. Since parents are typically the ones covering these costs, it’s worth it to talk to your child about safe driving habits. In the meantime, the above table provides a look at the possible rate increases you can expect when you add a teen driver to your policy.
Insurance Rate Information for Military Drivers and Veterans
More than 2,800 active-duty military members currently reside in South Dakota and those members, as well as veterans, qualify for a variety of military discounts on car insurance. While South Dakota requires all drivers to carry insurance, some companies will work exclusively with military and vets. The Department of Public Safety for South Dakota has a variety of resources available for military families to assist with their insurance needs.
Insurance companies in South Dakota will also work with the military who may need to suspend their insurance while on active duty or extend coverage out of state. The below table breaks down the average costs per month of insurance for military members in South Dakota.
Average Rates for South Dakota service members
Car Insurance in South Dakota: What You Need to Know
According to the South Dakota Department of Labor and Regulation, anyone who operates a vehicle must prove financial responsibility for that vehicle, usually in the form of auto insurance. Mandatory coverages include bodily injury liability, property damage liability and uninsured motorist coverage.
Proof of Insurance in South Dakota
If you have insurance, you need to carry your insurance card in the car at all times. The card should include your insurance company's name, your policy number and the dates of coverage.
You'll need to show it when:
- A law enforcement officer asks for it
- You register or renew your vehicle
- You are in an accident
If you don't want to carry a physical card, South Dakota allows drivers to carry proof of insurance on a smartphone.
Minimum Liability Insurance Requirements in South Dakota
South Dakota requires that you carry minimum auto coverage:
- $25,000 for injuries to one person
- $50,000 for injuries per accident
- $25,000 for property damage
- $25,000 uninsured/underinsured motorist coverage per person
- $50,000 uninsured/underinsured motorist coverage per accident
Insurance industry experts and consumer groups recommend that if you can afford it, you should get more liability insurance than the state minimum mandates.
While most drivers purchase auto insurance to cover their car, the state allows the following options instead of insurance:
- Surety bond with the state
- Self-insurance (if you own 26 vehicles or more for business)
- $50,000 certificate of deposit
These alternatives require significant cash reserves. You can also lose that money with one accident, so most people elect insurance.
High-Risk Auto Insurance Program in South Dakota
If you are a high-risk driver due to DUIs or reckless driving tickets, then you may have a more difficult time obtaining insurance coverage in South Dakota. If you cannot purchase insurance because of your driving history, you can seek out the South Dakota Automobile Insurance Plan. As long as you meet the requirements, you can receive insurance under the program.
How Much Coverage Do You Need in South Dakota?
Even though South Dakota has a minimum insurance requirement, that coverage may not fully cover you in the event of an accident. The Insurance Information Institute advises that drivers carry liability coverage of $100,000 per person and $300,000 per accident, which is well above the state’s minimum.
South Dakota ranks fourth in the country for deer-related accidents, which may be reason enough to carry comprehensive insurance covering non-traffic events beyond your control.
South Dakota drivers may also want to consider collision insurance, which pays for auto repair or replacement if you're in an accident.
Average Insurance Rate by City in South Dakota
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FAQs About Car Insurance in South Dakota
When shopping for auto insurance in South Dakota, drivers may want answers to questions about pricing and which companies are the best. Here are some frequently asked questions.
About the Author
- AIPSO. "South Dakota Automobile Insurance Plan." Accessed March 7, 2020.
- Centers for Disease Control and Prevention. "Sobering Facts: Alcohol-Impaired Driving State Fact Sheets." Accessed March 7, 2020.
- Department of Public Safety. "South Dakota Veteran & Active Duty Drivers." Accessed March 7, 2020.
- Division of Insurance Consumer Information. "Division of Insurance Consumer Information - Automobile Insurance." Accessed March 7, 2020.
- Experian. "2019 Consumer Credit Report." Accessed March 7, 2020.
- Governing. "Military Active-Duty Personnel, Civilians by State." Accessed March 7, 2020.
- Insurance Information Institute. "Facts + Statistics: Alcohol-impaired driving." Accessed March 7, 2020.
- Insurance Information Institute. "Facts + Statistics: Deer vehicle collisions." Accessed March 7, 2020.
- National Association of Insurance Companies. "2018 Market Share Reports for Property/Casualty Groups." Accessed March 7, 2020.
- National Highway Traffic Safety Administration. "Traffic Safety Facts." Accessed March 7, 2020.
- NOLO. "South Dakota Driving Laws for Seniors and Older Drivers." Accessed March 7, 2020.
- South Dakota Department of Public Safety. "South Dakota Crash Analysis Tool." Accessed March 7, 2020.
- South Dakota Legislative Research Center. "Codified Law 32-23-2." Accessed March 7, 2020.