Cheapest Car Insurance for Low-Income Drivers in South Dakota (October 2024)

In South Dakota, Farmers Mutual of Nebraska provides the cheapest car insurance for drivers with low income and poor credit history at $17 per month. For families with low income, Allstate is the most affordable option at $38 per month.

South Dakota does not offer state-backed car insurance programs for families and individuals with low incomes. Finding the provider with the most affordable rate is one way to manage the cost. There are also ways to get discounts to help alleviate the cost of car insurance. Note that although minimum coverage will help you drive legally, it may not cover all damages and expenses in an at-fault accident.

Car insurance companies in South Dakota do not consider income when calculating your rates. Instead, they look at factors like age, driving record, credit history and type of car. At-fault accidents and moving violations can increase your rates significantly. To find the cheapest rates, it's essential to compare quotes from several insurance companies.

A basic minimum coverage policy is often the cheapest way to stay legal on the road. For drivers who rarely drive, pay-per-mile insurance can be a cost-effective option. MoneyGeek rounded up the cheapest insurers for drivers with low income in South Dakota to help you save.

To legally drive in South Dakota, you must have car insurance that meets the state's minimum car insurance requirements. Your policy should include at least the following coverages:

• $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

If budget is a concern, a liability-only car insurance policy covers the other driver's expenses in an at-fault accident. However, it doesn't cover damages to your vehicle. To protect your own vehicle, consider a full coverage car insurance policy, which includes collision and comprehensive coverages. These cover damages from theft, vandalism or natural disasters.

Understanding the risks and benefits of different coverages ensures you select the right insurance for your needs.

Your credit record can affect your car insurance rates in South Dakota. A lower credit-based insurance score may signal to insurers that you're a higher risk, which can lead to more expensive premiums.

South Dakota drivers with poor credit records can find affordable rates with:

• Farmers Mutual of Nebraska: $201 per year; $17 per month
• American Family: $278 per year; $23 per month

The cheapest car insurance in South Dakota for drivers with low income and a good credit history are:

• Farmers Mutual of Nebraska: $184 per year; $15 per month
• American Family: $243 per year; $20 per month

Driving without insurance in South Dakota is considered a misdemeanor and can lead to suspension of your driver's license and vehicle registration, fines ranging from $175 to $1,000 and other penalties. Make sure you're covered to drive legally and safely.

Although your income doesn't directly influence car insurance rates, your family situation does. For instance, in South Dakota, a single parent's annual premium can be $337 more than that of a married couple with a teen. Conversely, a couple's rate can be $337 less per year.

The most affordable car insurance companies for a married couple with a teen in South Dakota are:

• Allstate: $454 per year; $38 per month
• Nationwide: $496 per year; $41 per month

For a single parent with a teen, the cheapest options are:

• State Farm: $791 per year; $66 per month
• Auto-Owners: $950 per year; $79 per month

Family type influences car insurance rates due to perceived risk differences. Married couples may receive lower rates as they're often viewed as more stable and risk-averse. Single parents might see higher premiums, highlighting the benefit of maintaining a strong credit score to access more affordable rates.

Car insurance premiums generally decrease as you reach the early senior years (typically around age 55 to 65), especially if you have a clean driving record. The two cheapest car insurance for senior drivers with low income and poor credit history are:

• Farmers Mutual of Nebraska: $183 per year; $15 per month
• Iowa Farm Bureau: $273 per year; $23 per month

After the age of 70, car insurance rates typically increase, as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. South Dakota may have specific laws or guidelines for seniors getting car insurance.

In South Dakota, income doesn't directly affect car insurance rates. However, if lower income leads to a poor credit record, this can result in higher rates. Conversely, a good credit score can lead to lower rates. Other factors like age, driving history and the type of coverage you choose also play a role in determining your rates. Understanding the factors contributing to car insurance rates in South Dakota can help you make informed decisions when choosing the best car insurance for you.

Whether or not you qualify for state-sponsored programs for drivers with low income, there are several ways to find affordable car insurance in South Dakota. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance for drivers with low income in South Dakota is a common issue. Get answers to some of the most frequently asked questions about low-income car insurance in the Mount Rushmore State.