Best Auto Insurance in South Dakota 2024

State Farm is one of the best auto insurance options after a DUI in South Dakota and the United States. At $1,749, its average annual rate for full coverage auto insurance after a DUI is over $1,000 less than the second-most-affordable option in the state. State Farm offered the lowest or second-lowest auto insurance rate in South Dakota in all but one category we researched for this analysis—making it a solid option for most drivers in South Dakota.

Affordable Auto Insurance for Everyone

State Farm can provide coverage for many demographics and situations. It had the lowest average rates for full coverage auto insurance, auto insurance for teen drivers, and drivers after a speeding ticket, DUI, and at-fault accident. State Farm also boasted affordable rates for minimum coverage auto insurance.

Savings After a DUI

A DUI could raise your insurance premium by 80 percent or more depending on where you live, your coverage, and other demographic factors.¹ DUIs are the most expensive of all traffic violations, which is why we researched how DUIs affect car insurance.

State Farm offers affordable auto insurance for people convicted of a DUI. Its average annual premium for drivers after one DUI in South Dakota is 42 percent lower than the statewide average. It’s also important to know that a DUI will stay on your driving record in South Dakota for ten years.

Statistically, a DUI is correlated with other demographics that could increase your auto insurance premium. We found that people with DUIs are less likely to be homeowners and more likely to have been involved in at-fault accidents or to receive tickets than people without DUIs. As a major national auto insurance provider, State Farm has many discounts you can take advantage of. Your State Farm agent can help you apply some of the following to save money on your premium even if you have a DUI on your record:

• Multiple automobiles
• Bundling
• Vehicle safety
• Student discounts

Customer Satisfaction

State Farm ranked first in J.D. Power’s 2023 Insurance Shopping Study among large insurers.² The company also ranked third in the Central Region, which includes South Dakota, in J.D. Power’s 2023 U.S. Auto Insurance Study. With strong financial stability scores and local agents, we are confident in State Farm’s customer service options—which shouldn’t change regardless of your driving record.

As noted above, your driving record is one of the most important indicators for your auto insurance premium. On average, car insurance rates after a speeding ticket in South Dakota increase by 17 percent. USAA’s rate increase was the second-lowest across the auto insurance companies we surveyed, just after State Farm. USAA is our best auto insurance for military and veterans—and it caters only to that group. You can qualify if your spouse or parent is a member. Our staff’s first-hand experiences with USAA testify to its affordability and customer service.

Who Qualifies for USAA

The following people are eligible for USAA membership:

• U.S. military members and veterans, including active-duty, guard, reserve members, and veterans who are separated or retired from the U.S. Armed Forces with an honorable or general under honorable conditions discharge
• Precommissioned officers, including contracted cadets or midshipmen attending a U.S. service academy, affiliated academy preparatory school, advanced ROTC program, or officer or warrant officer candidates commissioning within 24 months
• Spouses, children, and stepchildren of USAA members, unmarried former spouses of USAA members, and widows/widowers of USAA members

Cheap Rates for South Dakota Teens

As in many states, teen drivers tend to pay higher rates in South Dakota than adult drivers. Due to their lack of driving experience, teens are more likely to get into crashes than any other age group, which is why insuring them is so expensive.

Of the companies surveyed in South Dakota, only two offered an average auto insurance rate for teen drivers below the state average: State Farm and USAA. USAA also offers a discount when young drivers transition from their parents’ USAA policy to their own policy.

Low Rates for High-Risk Drivers

The average monthly cost of all USAA auto insurance policies issued in South Dakota, per its website, is $135.⁴ We compared the average monthly premiums for high-risk categories to this number to determine how much higher you should expect your auto insurance rate with USAA if you have a speeding ticket, DUI conviction, poor credit, or lack of driving experience.

Out of all the categories, a speeding ticket should cause your auto insurance premium to go up the least.

In a handful of states, it is illegal for auto insurance companies to use credit scores to determine your premium; however, South Dakota allows this practice. Credit scores help insurers guess an applicant’s likelihood of filing a claim. We found that Nationwide has more affordable rates than most providers when insuring teen drivers and drivers with bad credit. It offers standard coverages, discounts, and customer service products for many types of drivers.

Cheap Rates for Drivers with Poor Credit

Auto insurance companies equate bad credit scores with a higher likelihood of making late payments and a higher frequency of claims. Among all the providers on our list, Nationwide has the lowest average rates in South Dakota for drivers with poor credit. This is consistent with our national data set, which includes USAA, Allstate, and other popular auto insurance providers like GEICO, Progressive, and Travelers.

Working with a Nationwide Agent

Nationwide works with independent agents who may represent multiple carriers, allowing clients to shop across companies and compare rates. This contrasts with captive agents, like those who work for State Farm and only offer State Farm products. Both options have drawbacks but consulting an agent could get you closer to your perfect auto insurance policy. Nationwide has insurance agents in over 50 cities in South Dakota, including Sioux Falls, Rapid City, and Aberdeen.

Nationwide’s Digital Tools

Nationwide ranked third-highest in service in J.D. Power’s 2024 U.S. Insurance Digital Experience Study.⁵ This study measures the success of auto insurance websites and apps when drivers are shopping for insurance and after they become customers. The survey evaluates navigation, speed, visual appeal, and information/content for desktop, mobile web, and mobile apps. Between shopping and service, a higher ranking in the service section bodes well for long-term customers as the experience doesn’t stop after you get an online quote.

Farmers is one of the largest auto insurers in the nation, serving nearly 20 million policies. With a good discount for bundling home and auto and high property claims satisfaction rates, Farmers is a good option for South Dakotans looking to insure both their home and vehicle.

Bundling Discount

Farmers offers discounts to reduce the burden of your auto insurance premiums. Farmers’ bundling discount is one of the highest we’ve seen in the industry: up to 20 percent off if you bundle home or renters insurance with your auto insurance policy.

High Property Claims Satisfaction

In addition to the financial benefits, bundling with Farmers provides a streamlined experience. Customers can manage all their insurance needs through a single provider, simplifying the process of updating information, making payments, and filing claims. In addition to standard home coverage, Farmers offers:

• Guaranteed Replacement Cost, which guarantees Farmers will pay the full cost of repairs for your home, even if they exceed your policy limits
• Water Backup and Sump Overflow, which pays for water damage caused by backups through drains or sumps
• Emergency Mortgage Assistance, which covers up to three mortgage payments ($10,000 total) if your home is uninhabitable after a covered loss
• And more

In J.D. Power’s 2024 U.S. Property Claims Satisfaction Study, Farmers ranked above the industry average (869 out of 1,000) with a score of 883, securing the fourth position overall.⁶ This recognition highlights the company’s ability to efficiently and fairly handle homeowners insurance claims.

Accident Forgiveness + Coverage After an Accident

Accident forgiveness is an add-on coverage that prevents your auto insurance premium from increasing after an accident. If you have a clean record but want the assurance that an accident won’t affect your future premiums, opt for this coverage from Farmers. Farmers will forgive one at-fault accident every three years.

One lesson to learn after an accident: opt for the extra coverage. Here are some additional coverage options you may consider adding to your policy after an accident—or before, just in case:

• Towing and roadside assistance: Farmers provides 24/7 roadside assistance and helps pay for towing, tire changes, and jump-starts.
• Rental car reimbursement: Farmers pays the cost of renting a car for up to 30 days while yours is repaired after a covered loss.
• Loss of use coverage: Farmers will provide a flat sum for transportation if you can’t use your vehicle after a covered claim.
• Glass deductible buyback: Farmers offers a $100 deductible for windshield and glass repairs/replacements.
• Full windshield and glass coverage: The same as above with a $0 deductible, so you pay nothing out of pocket.
• Original equipment manufacturer (OEM): This will cover the cost of factory-original repair parts for cars up to 10 years old. It’s a good coverage for people who drive vehicles like Teslas, with expensive or unique parts.
• New car replacement coverage: If your car is totaled within the first two model years and under 24,000 miles, you can replace it with a new car of the same make and model.
• Residual debt coverage (similar to GAP coverage): If your insured car is a total loss and the actual cash value (ACV) is less than the remaining balance on your auto loan, Farmers will pay up to 25 percent above the ACV to help you pay off your loan.

Allstate’s auto insurance commercials reassure us that we’re “in good hands with Allstate.” But, if you were one to decide based on marketing alone then you wouldn’t be this far into the article! There are many options for South Dakota drivers looking for robust auto insurance coverage. We chose Allstate because of its extensive coverage and discount offerings. Drivers with less-than-stellar records may find Allstate too expensive, but, for the average driver, it has almost everything you could want out of an auto insurance policy.

Allstate’s Full Coverage Options

The best full coverage auto insurance provides affordable and flexible optional coverage options. As one of the nation’s largest insurance companies, Allstate offers many coverages, discounts, and resources. When we say full coverage, we mean an auto insurance policy that includes the following required and nice-to-have coverages.

Legally-required auto insurance coverage in South Dakota:

• Bodily injury liability of at least $25,000 per person, $50,000 per accident
• Property damage liability of at least $25,000 per person
• Uninsured/underinsured motorist coverage of at least $25,000 per person, $50,000 per accident (we recommend as high as you can afford, up to $500,000)

Nice-to-have coverages in our definition of full coverage auto insurance:

• Medical payments coverage of as much as you can afford
• Collision insurance equal to your car’s actual market value (AMV)
• Comprehensive insurance equal to your car’s AMV

Allstate’s Add-On Coverages

These nice-to-have coverages offered by Allstate are not included in our definition of full coverage auto insurance, but are still worth a look as you shop for a policy:

• Rideshare insurance: Allstate calls this Ride for Hire, and it helps fill in coverage gaps when you use your vehicle for a ride-sharing service.
• Roadside assistance: Allstate’s roadside assistance covers tire changes and jump-starts.
• Personal umbrella policy: An umbrella policy covers liability above and beyond your auto policy’s limits.
• Rental reimbursement: Allstate covers renting a car or other transportation expenses while your vehicle is in the shop due to a collision or other insured loss.

Allstate also offers auto insurance policies for classic car owners and travel insurance for drivers from the U.S. and Canada when they drive in Mexico.