Cheapest car insurance in South Dakota for 2024

Based on an analysis of data provided by Quadrant Information Services, the average cost of car insurance in South Dakota is $329 annually for state-mandated minimum coverage and $2,096 for full coverage, which typically includes collision and comprehensive insurance. Your own rate is likely to vary from the averages as it will be based on your own circumstances and driving record. Bankrate's research found a handful of companies that are writing the cheapest car insurance in the Mount Rushmore State. Here are the companies offering the best average rates for a range of situations:

Key takeaways

• Cheapest company for minimum coverage: USAA
• Cheapest company for full coverage: USAA
• Cheapest company for drivers with prior incidents: North Star Mutual
• Cheapest company for young drivers: North Star Mutual

The state of South Dakota requires that all drivers acquire at least a minimal level of car insurance to drive legally. Along with bodily injury liability and property damage liability, South Dakotans must also carry uninsured/underinsured motorist insurance, which helps pay for medical expenses for drivers and their passengers if hit by an uninsured or underinsured motorist. While minimal limits are usually associated with a lower premium, insurance experts recommend that policyholders carry higher levels of liability for more financial protection.

Minimum coverage requirements for South Dakota drivers

The cheapest type of car insurance in South Dakota is minimum coverage, which costs, on average, $329 a year. Minimum coverage insurance in South Dakota is represented as 25/50/25, which translates to $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $25,000 in property damage coverage per accident. Drivers are also required to carry 25/50 in uninsured/underinsured motorist coverage. Note that minimum coverage does not help pay for damage to your vehicle if you cause the accident, though.

It is recommended that drivers in South Dakota purchase coverage beyond the required amount if they are financially able to do so. In the event of an at-fault accident, if a driver’s financial responsibility exceeds their policy’s coverage limit, they become responsible for paying the remaining damages out of pocket. Full coverage, which typically includes collision and comprehensive coverage, costs an average of $2,096 in South Dakota. If you lease or finance your vehicle, you will probably be required to purchase full coverage car insurance.

Full coverage insurance is a policy that includes all the state's required coverage plus collision and comprehensive insurance, which covers damage to your own car in an at-fault accident. Full coverage generally costs more, but it also gives you more robust protection. Unless you have a very old vehicle that is not worth repairing if it's in an accident, choosing a full coverage policy can be a good idea.

The average rates quoted above are for drivers with a clean driving record. If you have one or more infractions on your license, you may pay more for your policy, since insurers are likely to consider you a higher risk for future claims. It may be possible, however, to find cheap car insurance in South Dakota even if you've had an at-fault accident or other mark on your license.

• Cheapest car insurance for drivers with a ticket: North Star Mutual
• Cheapest car insurance for drivers with an at-fault accident: USAA
• Cheapest car insurance for high-risk drivers: Western National

Cheapest insurance companies for drivers in South Dakota with a speeding ticket: North Star Mutual

A single speeding ticket conviction may be enough to increase your car insurance rates. It indicates to insurers that you may not be as safe a driver as they would like you to be, which might cause them to raise your rates accordingly. You may still be able to find cheap South Dakota car insurance, however, by considering the following companies, which have a reputation for writing inexpensive policies for those with a speeding ticket conviction on their license. North Star Mutual tops the list, with the cheapest averages of all our choices.

Cheapest car insurance for drivers in South Dakota with an at-fault accident: USAA

If you're at fault in an accident, you may be facing fines or other penalties. In addition to that, your insurance rate is likely to rise. Just as is the case when you get a speeding ticket, an at-fault accident leads your insurer to believe you are not a safe driver, and may therefore be at risk of future accidents as well. If that's the case, they may respond by raising your rate. These insurers, including our top choice USAA, are known for writing relatively low-cost car insurance in South Dakota for those who have had an accident.

Cheapest rates in South Dakota for high-risk drivers: Western National

Each insurer has its own criteria for placing a driver in the high-risk category. For many, it may be multiple speeding tickets, accidents or other moving violations. A DUI is seen as the most serious infraction, and a single instance of this on your record could have you paying high-risk rates for your insurance. Some insurers, in fact, will not write you a policy if you are in the high-risk category. The insurers in the table below offer South Dakota car insurance savings for those who are high-risk drivers, with Western National having the lowest average rates in this category:

One of the factors insurers may take into consideration when determining your premium is age. Insurers look at statistical evidence showing which age groups are most likely to be involved in accidents, and teens and young adults score high in this category. By shopping around, however, you may be able to find cheap car insurance for young adult drivers.

• Cheapest car insurance for insuring a teen driver: North Star Mutual
• Cheapest car insurance for teens with a ticket: North Star Mutual
• Cheapest car insurance for teens with an at-fault accident: North Star Mutual
• Cheapest car insurance for young drivers with a DUI: Progressive

Cheapest South Dakota car insurance for insuring a teen driver: North Star Mutual

It can be a challenge to find cheap car insurance in South Dakota if you have a teen driver listed on your policy. Teen drivers are statistically more likely to be involved in an accident than any other age group, largely because they do not yet have much experience behind the wheel. Insurers compensate for this by charging higher premiums across the board for teen drivers, even those who have not been involved in an accident. The good news is that they soon age out of this group and will see lower rates as they enter their twenties, assuming their driving records are clean. Even more good news: many insurers offer discounts for teens and student discounts that can lower your rate significantly.

Cheapest South Dakota car insurance for teens with a ticket: North Star Mutual

As is true for adult drivers, teens who have a speeding ticket on their license are likely to see their rates increase. If this is the case, they may want to look at companies such as North Star Mutual and Western National, who have low average rates for teens with a speeding ticket.

Cheapest South Dakota car insurance for teens with an at-fault accident: North Star Mutual

Teens sometimes engage in risky behavior behind the wheel, such as texting while driving, and the rate for teen accidents is high. If you have a teen in your family who has been in an at-fault accident, companies such as North Star Mutual offer affordable average rates for drivers who may be considered high-risk.

Cheapest South Dakota car insurance for young drivers with a DUI: Progressive

A teen who is convicted of a DUI is likely to face steep civic penalties, but in addition to that, they will probably see a sharp increase in their insurance rate. They may want to consider taking a defensive driving course to see if that earns them a discount. They may also want to look at carriers such as Progressive, which offers some of the cheapest car insurance in SD for drivers with a DUI.

As we noted above, discounts can be a great way to save on car insurance in South Dakota. Almost all insurers offer at least a few of these, and many of them are easily earned. Here are a few of the more common ones in the Mouth Rushmore state:

• Accident-free: Many insurers will give you a discount if you remain claim-free for a certain number of years — usually one to three. The discount may increase the longer you go without filing a claim.
• Safe driving: Insurers increasingly use telematics to monitor your driving in real-time. If you prove to be a safe and careful driver, you may be able to save a significant amount on your premium. Keep in mind that some insurance companies may also penalize you if you demonstrate unsafe driving habits.
• Young driver: These opportunities vary from insurer to insurer; the most common one rewards young drivers in school with a discount if they maintain a "B" or above average. College students may also get a discount if they attend school more than 100 miles from where their car is garaged.
• Bundling discount: This common program saves you money on your premiums if you purchase more than one policy from your insurer. Most commonly, this will be auto and homeowners or auto and renters insurance.
• Vehicle safety discounts: Most newer cars have safety features such as anti-lock brakes, airbags and theft prevention systems. Some insurers will offer a discount for these devices.

Bankrate utilizes Quadrant Information Services to analyze the latest rates in April 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate increases filed by insurance companies and are weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction. Young driver DUI rates are for 21-year-old drivers on their own policy; other young driver incident rates are for 18-year-old drivers on their own policy.

Teens: Rates were determined by adding a 16-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.