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.

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Cheapest for Individuals With Low Income

Farmers Mutual of Nebraska is the cheapest car insurance provider for drivers with low income and poor credit history in South Dakota. Its average minimum coverage premium is $17 per month or $201 per year.

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Cheapest for Families With Low Income

Allstate is the cheapest car insurance provider for families with low income in South Dakota. Its average minimum coverage premium is $38 per month or $454 per year.

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Cheapest for Senior Drivers With Low Income

Farmers Mutual of Nebraska is the cheapest car insurance provider in South Dakota for seniors with low income and poor credit scores. Its average minimum coverage premium is $15 per month or $183 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the South Dakota Department of Labor's Division of Insurance to get the cheapest average costs for drivers with low income in South Dakota.

16,221Quotes Analyzed
 
13Companies Compared
 
12ZIP Codes

Does South Dakota Offer Low-Income Insurance?

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.

Minimum Car Insurance Requirements in South Dakota

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.

Cheapest Car Insurance for Individuals With Low Income in South Dakota

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.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Farmers Mutual of Nebraska$201$17
American Family$278$23
Western National$362$30
Iowa Farm Bureau$377$31
Progressive$512$43
Kemper$558$46
GEICO$577$48
Allstate$702$58
Nationwide$772$64
Auto-Owners Insurance Co$865$72
Farmers$912$76
State Farm$1,359$113
Compare Auto Insurance Rates

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

Cheapest Car Insurance for Families With Low Income in South Dakota

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.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
Allstate$454$38
Nationwide$496$41
State Farm$507$42
Farmers$570$47
GEICO$570$48
Auto-Owners Insurance Co$662$55
Kemper$800$67
Progressive$907$76

Cheapest Car Insurance for Seniors With Low Income in South Dakota

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.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Farmers Mutual of Nebraska$183$15
Iowa Farm Bureau$273$23
American Family$281$23
Western National$358$30
GEICO$496$41
Progressive$496$41
Kemper$552$46
Nationwide$747$62
Allstate$755$63
Auto-Owners Insurance Co$886$74
Farmers$1,027$86
State Farm$1,281$107
Compare Auto Insurance Rates

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

What Factors Affect Car Insurance Rates in South Dakota?

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.

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    Driving record

    At-fault accidents and moving violations increase rates for drivers. Insurers see these as indicators of risky behavior, leading to higher premiums.

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    Age and gender

    Younger drivers and males often face higher rates due to statistical risk. Insurers consider these groups more likely to be involved in accidents.

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    Credit history

    A poor credit record can lead to higher insurance premiums. Insurers use credit-based insurance scores to predict the likelihood of filing claims.

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    Location

    Urban areas typically have higher rates due to the increased risk of accidents and theft, while rural areas may have lower premiums.

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    Vehicle type

    Luxury and sports cars generally cost more to insure. These vehicles often have higher repair costs and are more likely to be stolen.

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    Coverage levels

    Higher coverage levels increase insurance costs. Opting for state minimum coverage can help keep premiums lower.

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    Insurance company

    Different insurers offer varying rates and discounts. Comparing quotes can help you find the most affordable option.

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    Claims history

    A history of filing claims can lead to higher rates as it indicates a higher risk to insurers. If you can afford to pay for your own repairs, it might pay not to file a claim.

How to Save on Car Insurance in South Dakota

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:

1
Choose minimum coverage

Opting for state-mandated minimum coverage can help you save money while meeting the legal requirements to drive.

2
Comparison shop

Get quotes from multiple insurers to compare rates and discounts. Shopping locally might lead to the lowest rates in South Dakota.

3
Look for discounts

Many insurance companies offer discounts for factors like being a good student, having a safe driving record, being a military member or bundling your auto insurance with other policies.

4
Increase your deductible

If you opt for collision or comprehensive coverage, choosing a higher car insurance deductible can significantly reduce your monthly premium. Ensure you can afford the deductible in case of an accident.

5
Consider pay-per-mile insurance

Pay-per-mile insurance is an excellent option for low-mileage drivers. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

6
Bundle your policies

If you have other insurance needs, like homeowners or renters insurance, bundling them with your auto policy can lead to discounts. The best home and auto bundles can save you around $496 each year.

7
Drive a cheaper car

Your car's make, model and year significantly impact your insurance costs. Driving the cheapest cars to insure can save you hundreds of dollars in insurance costs annually.

FAQ: Low-Income Car Insurance in South Dakota

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.

Does South Dakota have a state-backed low-income car insurance program?
How can low-income families get affordable car insurance in South Dakota?
Does your income affect the cost of car insurance in South Dakota?
What are the benefits of usage-based telematics programs for drivers with low income in South Dakota?

About Mark Fitzpatrick


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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.