Cheap South Dakota Low-Income Car Insurance for Families and Individuals

South Dakota doesn’t have a government program to help low-income drivers with auto insurance. To find inexpensive rates easier, MoneyGeek gathered average quotes from car insurance companies. We found Farmers Mutual of Nebraska offers the cheapest car insurance for low-income families and individuals in South Dakota.

Compare Auto Insurance Rates

Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

widget-location-pin
Last Updated: 4/19/2022
Advertising & Editorial Disclosure
By     |  

Adding a teen/young driver to a policy and coverage levels are the factors with the most impact on car insurance rates in South Dakota. Insurers don't consider income.

MoneyGeek’s analysis identifies the cheapest auto insurance options in South Dakota for low-income families and individuals with poor or good credit scores.

Is There Car Insurance for Low-Income Families and Individuals in South Dakota?

There is no South Dakota government car insurance program for low-income families and individuals. Although car insurance is required, the cost may be a reason why 7.4% of drivers in South Dakota are uninsured.

Purchasing a state minimum policy is the most affordable way to have auto coverage. An alternative is to use pay-per-mile insurance in South Dakota, which could be ideal if you drive infrequently.

tip icon

Does South Dakota Have a Government Program to Support Low-Income Drivers with Insurance?

Low-income drivers do not have access to a government car insurance program in South Dakota. To find car insurance you can afford at a low rate, compare quotes from multiple companies.

For low-income drivers who want to save on auto insurance, MoneyGeek found companies with cheap car insurance for low-income families and individuals in South Dakota.

The Cheapest South Dakota Car Insurance Companies for Low-Income Drivers

Insurers can’t use income to set car insurance premiums, but they consider some potentially income-related factors. Age and credit score are examples, both of which significantly impact rates.

An auto policy with the lowest premium is state minimum coverage. MoneyGeek found that Farmers Mutual of Nebraska offers the cheapest car insurance for various types of low-income drivers.

MoneyGeek also found cheap minimum car insurance coverage for low-income individuals and families of varying ages in South Dakota.

tip icon
CHEAPEST CAR INSURANCE COMPANIES FOR LOW-INCOME DRIVERS

More MoneyGeek South Dakota car insurance resources:

Insurance Rates

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

widget-location-pin

The Cheapest South Dakota Car Insurance Companies for Low-Income Families

Although income isn’t a factor when insurers calculate premiums, a family with a poor credit score pays higher rates. For example, MoneyGeek’s sample single parent pays around an additional $706 annually with poor credit versus good credit. A couple with a child pays around $841 a year more with poor credit than good credit.

On average, the companies offering the cheapest car insurance for a couple with a child and poor credit in South Dakota are:

  • Farmers Mutual of Nebraska: $1,635 per year
  • Allstate: $2,174 per year

USAA has the lowest rate at around $1,094 annually but is only available to those with a military background.

If you’re a single parent with poor credit, the most affordable policies come from:

  • Farmers Mutual of Nebraska: $1,329 per year on average
  • GEICO: $1,564 per year on average

With a military background, a single parent with poor credit pays around $929 a year through USAA.

Having a low income doesn’t automatically mean your family has poor credit. You can toggle the table below to find the most affordable options for your credit score and family profile.

Sort by family type:

Single parent w/ a kid

Switch by Credit Score:

Good Credit Score

Scroll for more

swipe icon
  • Company
    Annual Rates
  • USAA
    $579
  • Farmers Mutual of Nebraska
    $828
  • GEICO
    $975
  • State Farm
    $1,041
  • Allstate
    $1,314
Insurance Rates

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

widget-location-pin

The Cheapest South Dakota Car Insurance Companies for Low-Income Individuals

MoneyGeek’s sample 40-year-old driver in South Dakota pays around $219 more per year if they have a poor credit score versus a good credit score.

On average, the companies offering cheap insurance for low-income drivers in South Dakota with poor credit are:

  • Farmers Mutual of Nebraska: $425 per year
  • GEICO: $519 per year

USAA, the cheapest option at roughly $284 a year, is available to eligible low-income drivers in South Dakota with a military background.

You can have a low income without a poor credit score. A 40-year-old driver in South Dakota with good credit pays Farmers Mutual of Nebraska around $265 per year, GEICO roughly $324 annually, and USAA around $177 a year.

Switch by Credit Score:

Good Credit Score

Scroll for more

swipe icon
  • Company
    Annual Rates
  • USAA
    $177
  • Farmers Mutual of Nebraska
    $265
  • GEICO
    $324
  • State Farm
    $329
  • Farmers
    $389

The Cheapest South Dakota Car Insurance Companies for Low-Income Students

Auto policies for young student drivers in South Dakota have higher premiums. Insurers find them riskier to insure since they have less driving experience. Their income is not a factor when calculating rates, but since they tend to have a low income, paying a high premium may be difficult.

On average, car insurance for low-income students in South Dakota with poor credit is cheapest from:

  • Farmers Mutual of Nebraska: $995 per year
  • GEICO: $1,216 per year

For poor credit students from a military family, USAA may be an option at around $666 per year.

Remember that a low income doesn’t always mean you have poor credit. Low-income students with good credit pay around $620 annually with Farmers Mutual of Nebraska and roughly $758 a year through GEICO. If eligible, USAA is around $415 a year.

Switch by Credit Score:

Good Credit Score

Scroll for more

swipe icon
  • Company
    Annual Rates
  • USAA
    $415
  • Farmers Mutual of Nebraska
    $620
  • GEICO
    $758
  • State Farm
    $771
  • Farmers
    $911

The Cheapest South Dakota Car Insurance Companies for Low-Income Seniors

Age is a factor insurers use to calculate rates, and seniors usually have higher rates than middle-aged drivers. Plus, their credit score influences premiums. MoneyGeek’s sample 70-year-old senior driver in South Dakota pays around $238 a year more with a poor credit score than a good credit score.

On average, the lowest-priced car insurance for low-income seniors in South Dakota with poor credit is through:

  • Farmers Mutual of Nebraska: $458 per year
  • GEICO: $475 per year

You can also consider USAA if you have a military background, costing around $372 annually.

Not all low-income seniors in South Dakota have poor credit. Farmers Mutual of Nebraska costs roughly $285 per year and GEICO around $296 annually if you’re a senior driver with good credit. If eligible, USAA charges around $232 annually.

Switch by Credit Score:

Good Credit Score

Scroll for more

swipe icon
  • Company
    Annual Rates
  • USAA
    $232
  • Farmers Mutual of Nebraska
    $285
  • GEICO
    $296
  • State Farm
    $329
  • Allstate
    $440

Does Income Affect Car Insurance Rates in South Dakota?

Car insurance companies can’t use income when calculating rates, but other commonly income-related factors affect your premium.

For example, a driver with a low income is more likely to file a claim for repairs because they can’t afford the cost themselves. Insurance companies do consider claims history when calculating rates and charge more to drivers who file claims often.

MoneyGeek analyzed which potentially income-related factors insurers use to determine rates in South Dakota and how much they affect car insurance rates. The following have the most impact on premiums:

  • Adding a teen driver.
  • Coverage levels.
  • Age of driver.

Other factors, such as car model and credit score, also influence car insurance premiums.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    Adding a teenage driver to your family policy can result in a 3.4x rate increase.

  • Coverage Levels

    A state minimum policy in South Dakota is around 2.6x cheaper than a full coverage policy.

  • Age of Driver

    A young driver could pay 2.3x more than a middle-aged driver.

  • Car Model

    Your car model could make your insurance 2x more expensive.

  • Credit Score

    A good credit score driver pays a 1.7x less expensive premium than with a poor credit score.

Frequently Asked Questions About Low-Income Car Insurance in South Dakota

When considering how to get low-income car insurance in South Dakota, you may have questions. MoneyGeek has the answers to the most frequently asked questions about finding cheap car insurance for low-income families and individuals in South Dakota.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in South Dakota using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in South Dakota.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


sources