Car Insurance in South Dakota

• Bodily injury liability: $25,000 per person, $50,000 per accident
• Property damage liability: $25,000 per person
• Uninsured motorist coverage: $25,000 per person, $50,000 per accident¹

South Dakota’s minimum coverage may not be enough if you cause an accident or are a victim of car theft, vandalism, or natural disasters. We recommend getting full coverage insurance in addition to the required liability insurance. Read on to see the difference.

Liability coverage only reimburses the other party’s losses in accidents you caused. To get your own losses covered, you’ll need collision insurance. You’ll also need comprehensive coverage to pay for your damages from anything that’s not a collision, like the aforementioned vandalism.

Additionally, we recommend medical payments coverage to pay for you and your passengers’ medical bills, even if you already have health insurance. When it comes to insurance, redundancy is key.

The limit for collision and comprehensive coverage is your car’s actual market value (AMV); in other words, what you would get if you sold it tomorrow. We also recommend liability limits on your liability and uninsured motorist coverage that are as high as you can afford, up to $500,000 if you have a high net worth.

Car insurance in South Dakota is the fifth cheapest in the nation, averaging only $739 annually. That average insurance price is 29 percent lower than the rest of the country. In 2020, the last time the National Association of Insurance Commissions published national data, liability insurance in the state cost an average of $325, while collision coverage cost an average of $246 and comprehensive coverage cost an average of $353.

Keep in mind that minimum coverage is always the cheapest option, although you may have to pay more for a covered claim with low car insurance rates. Instead of getting the cheapest car insurance that meets the minimum insurance requirements, consider spending more on South Dakota car insurance to save more later.

• Allied
• Allstate
• American Family
• Auto-Owners
• Farm Bureau
• Farmers
• Farmers Mutual of Nebraska
• GEICO
• Nationwide
• North Star Mutual
• Progressive
• State Farm
• USAA
• Western National

1. Ask your agent. Your agent is the best person to ask about auto insurance discounts. If you have a teen driver, get a discount for their good grades. Get an early payer discount if you are okay with paying more upfront. Each company’s policies are different, so we recommend going straight to the source to find ways to save.
2. Bundle your policies. Now, we’re not suggesting you buy a new insurance policy just to get a bundling discount. But if you already have more than one policy, bundle them under the same provider, and you’re likely to see lower rates.
3. Lower your limits. The lower your liability limits, the lower your premiums, but keep in mind the financial responsibility you’ll have in an at-fault accident. Paying less now could mean paying more later.
4. Get rid of coverages. Similarly, dropping coverages that the law doesn’t require will save you money now. But if, for example,  your car is stolen and you lack comprehensive coverage, you won’t see any compensation at all.
5. Increase your deductible. You can raise the deductible on your comprehensive and collision coverage to decrease your premium. Just make sure you can actually afford to pay that higher deductible in the event of a covered claim.

If you have the required car insurance but can’t prove it, do you really have it at all? To law enforcement, the answer is no. If you’re caught driving without insurance in South Dakota, you could be charged with a Class 2 misdemeanor and face the following penalties.

• Fine: $500 maximum
• Imprisonment: Up to 30 days (in addition to or instead of the fine)
• License suspension: 30 days to one year, until you show proof of insurance
• License reinstatement fee: $50
• Registration suspension: Until you show proof of insurance

Proof of insurance can be either paper or electronic.

Fault System

South Dakota’s at-fault insurance system means the person who caused an accident is responsible for the other party’s property damages and bodily injuries, as well as their own. Regarding negligence laws, the state is unique with slight-gross comparative negligence. That means the plaintiff, or the accident victim, can only recover money if they displayed “slight” negligence and the defendant displayed “gross” negligence.

However, the state legislature does not define these two thresholds in terms of percentages, so it’s up to the judge’s discretion to determine compensation, if any.

Uninsured Motorists

Since South Dakota requires uninsured motorist coverage (UM), you’ll be happy to find out UM includes coverage for hit-and-runs — when someone hits your car and leaves without leaving their information. However, you can’t stack coverage limits if you have multiple cars, unlike in some other states.

How to Register Your Car in South Dakota

If you’ve purchased a new car, you must register it with the South Dakota Department of Revenue within 45 days of your purchase date. You have a few registration methods to choose from.

How to Get a Copy of Your Car Title in South Dakota

1. Print out the form at https://sddor.seamlessdocs.com/f/1002.
2. Get it notarized if you aren’t the vehicle owner.
3. Gather $10.
4. Send the form and fee to your local county clerk’s office, which you can locate at https://dor.sd.gov/government/county-treasurers/contact-county-treasurers/.

How to Contact the South Dakota Division of Insurance

• Email: sdinsurance@state.sd.us
• Phone number: 605-773-3563
• Address:
  • South Dakota Division of Insurance
    124 S. Euclid Ave., 2nd Floor
    Pierre, SD 57501

Expect to pay about $376.53 for car repairs in South Dakota, a rate 2 percent lower than the rest of the country. Most of that cost will go to parts ($222.91), while some will go to labor ($153.62).

Auto Theft Rate

Despite its relatively small population, South Dakota’s car theft rates are 5 percent higher than the U.S. average. In 2020, there were 259 car thefts per 100,000 residents, according to FBI data. The rates in cities like Rapid City and Sioux Falls were even higher, based on National Insurance Crime Bureau data.

Keep in mind that car insurance covers theft only if you have comprehensive coverage. If you lack comprehensive coverage and your car is stolen, you’ll be responsible for buying a new car on your own.

Motor Vehicle Death Rate

One advantage of such a small and low-density population is a lack of motor vehicle deaths. With only 102 motor vehicle deaths per 100 million miles driven, South Dakota’s average rates are 594 percent lower than the rest of the country.⁷

Interested in driving outside of the Mount Rushmore State? Perhaps heading north? Enjoy our guide to car insurance in North Dakota. If you prefer to learn more about South Dakota, read our frequently asked questions below.