Best car insurance in South Dakota for 2023

Best car insurance companies in South Dakota

According to Bankrate’s analysis of average rate data from Quadrant Information Services, the average cost of car insurance in South Dakota for 2023 is $1,553 per year for full coverage and $276 for minimum coverage car insurance. Our research also determined that the best car insurance companies in South Dakota include USAA, State Farm, Progressive, Allstate and Farmers.

In addition to weighing average rate data from these companies, we also considered other factors, including J.D. Power rankings, AM Best and Standard & Poor’s (S&P) financial strength scores, each company’s coverage offerings, discounts and digital assets. We used this information to issue each company a Bankrate Score with a maximum score of 5.0, which may be useful for South Dakota drivers to consider when weighing their car insurance options.

*USAA not officially ranked due to eligibility requirements

How Bankrate chose the best car insurance companies in South Dakota

Bankrate compiles the Bankrate Score by weighing average rate data from Quadrant Information Services, financial strength ratings from AM Best, customer satisfaction ratings from J.D. Power, coverage options and availability, as well as the portion of insurance market share held. Shoppers may be able to better identify which insurers are the best fit for them by using our Scores as part of the process.

How much is car insurance in South Dakota?

South Dakota car insurance is generally cheaper than it is in the country as a whole in 2023. While the national average car insurance cost is $2,014 per year for full coverage and $622 for minimum coverage, the average cost of car insurance in South Dakota is $1,553 per year for full coverage and $276 for minimum coverage. 

Car insurance rates vary by state due to several factors, including the likelihood of accidents, the cost of medical care and the cost of repairing vehicles, as well as the risk of severe weather issues or other related factors. In comparison, the neighboring state of North Dakota has annual average rates of $1,302 per year for full coverage and $269 per year for minimum coverage car insurance. Nebraska, which sits just south of South Dakota, has average annual car insurance rates of $1,624 for full coverage and $359 for minimum coverage.

How to find the best car insurance in South Dakota

Each driver has unique circumstances that will impact their search and their costs when shopping for car insurance, so the best company will vary for each driver. However, there are some steps you can take to help ensure you are getting the best coverage for your needs. 

Consider minimum insurance requirements in South Dakota

Despite having a low average cost for minimum coverage, South Dakota’s car insurance laws require drivers to carry more kinds of coverage than many states. Drivers in South Dakota are required to carry at least minimum limits of bodily injury liability, property damage liability, uninsured motorist bodily injury and underinsured motorist bodily injury coverage. While minimum coverage can result in cheap premiums, you should know that it offers very little financial protection. Many drivers choose to buy higher limits of liability to further protect their finances.

Consider lender requirements

If you lease or finance your vehicle, you likely have more insurance requirements to consider than just your state’s laws. Generally, you’ll have to carry full coverage, which includes comprehensive coverage and collision coverage. Because these coverage types provide coverage for damage to your vehicle, they help protect the lender or lessor, since they have a financial interest in the vehicle. Although it’s not usually required, gap insurance may also be a good option. This coverage is designed to pay for the difference between your totaled or stolen vehicle and the balance on your loan.

Consider your individual needs

State and financing requirements aren’t the only factors that can affect what car insurance company and coverage options you choose. Your own unique circumstances will also play a role. For example, households with teen drivers may have different needs than households with only adult drivers. You might look for a company with teen driver discounts or low average rates for young drivers, for example. Understanding your own situation and searching for companies that can match your needs could help you find coverage that fits your lifestyle.

Frequently asked questions