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Best car insurance in South Dakota for 2023
Bankrate’s research revealed that USAA and State Farm are some of the best car insurance companies in South Dakota. The average cost of car insurance in South Dakota is $1,607 per year for full coverage, according to Bankrate’s 2022 analysis of quoted annual premiums. However, most of the carriers we feature here have average full coverage rates below the state average.
We understand that price is an important consideration for many drivers when shopping for car insurance, but we also encourage you to take other factors into account. If you’re looking for the best car insurance for your needs, you may also want to consider coverage types, available discounts and third-party scores when you are comparing companies. Our research into the South Dakota car insurance market could help you choose the right provider for your situation.
The best car insurance companies in South Dakota
Bankrate used a proprietary research methodology to examine car insurance companies. We found that USAA, State Farm, Progressive, Allstate and Farmers are some of the best companies in South Dakota. In addition to average premiums, we also took J.D. Power scores, AM Best and Standard & Poor’s (S&P) financial strength scores, coverage offerings, discounts and digital assets into consideration. We combined these features into a Bankrate Score, which are on a scale of 0.0 to 5.0, indicating how highly each carrier scored in each category. Higher overall Bankrate Scores correspond to higher rankings within each scoring metric.
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score (Central region)|
*Not officially ranked by J.D. Power due to eligibility restrictions
Discover the best carrier for you
USAA offers coverage solely to military members and veterans, as well as qualifying family members. Because of these eligibility restrictions, USAA doesn’t qualify for official ranking with J.D. Power, but the insurance provider regularly receives high scores. USAA is the only carrier on our list with a perfect 5.0 Bankrate Score. When combined with the lower-than-average full coverage premium, USAA could be a great choice for drivers who qualify.
Learn more: USAA Insurance review
State Farm has the lowest average annual full coverage premium on our list, so it could be a good choice for drivers looking for cheap car insurance. State Farm also comes backed by excellent financial strength scores and the largest market share in the industry. However, the carrier does have a higher-than-average complaint index score from the National Association of Insurance Commissions (NAIC). A score of 1.00 means that the NAIC receives an average number of complaints about a company; State Farm’s overall score is 1.46.
Learn more: State Farm Insurance review
Progressive’s average premium is slightly higher than the state average, but the carrier might still be a good fit for your needs. Progressive may offer options for high-risk drivers, who might otherwise struggle to find coverage. Drivers looking for robust digital tools might also enjoy Progressive. The provider ranked highly in the 2021 J.D. Power U.S. Insurance Digital Experience Study, taking second place in the service category and scoring above average in the shopping category.
Learn more: Progressive Insurance review
Allstate’s premium is the highest on our list, but the high price might be due to the numerous add-on coverage types available. Policyholders looking for a more personalized policy might enjoy Allstate’s suite of endorsements, which includes custom equipment coverage and rideshare coverage. Allstate offers plenty of discounts, too, so you might find that you can lower your premium.
Learn more: Allstate Insurance review
Farmers has the highest official J.D. Power ranking of any company on our list, so it could be a good choice for South Dakota drivers who value good service but do not qualify for USAA. Farmers also boasts the second-lowest average full coverage premium, so drivers on a budget may want to get a quote too. However, just like State Farm, Farmers has a higher-than-average NAIC complaint index score. Farmers’ score is 2.03, meaning the NAIC receives more than twice as many complaints as usual.
Learn more: Farmers Insurance review
Average car insurance cost in South Dakota
Based on 2022 premium data from Quadrant Information Services, car insurance in South Dakota is generally cheaper than it is in the country as a whole. While the national average car insurance rate is $1,655 per year for full coverage, the average cost of car insurance in South Dakota is $1,607 per year for full coverage. Car insurance rates vary by state due to a number of factors, including the likelihood of accidents, the cost of medical care and the cost for repairing vehicles.
|Average annual premium for minimum coverage in South Dakota||Average annual premium for full coverage in South Dakota|
How to find the best car insurance in South Dakota
Each driver has a unique set of circumstances when shopping for car insurance, so the best company will vary. However, you can take steps 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. Most insurance professionals recommend that you buy higher limits of liability to further protect your 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.
Car insurance discounts in South Dakota
While car insurance in South Dakota is generally cheaper than average, you may be able to save on your car insurance premium by taking advantage of discounts. Most car insurance companies offer at least a few auto insurance discounts, and some — like multi-car and multi-policy — are very widely offered.
- Young driver discounts: If you have young drivers in your household, you might be looking for cheap car insurance for teens. You may want to look for companies that offer good student discounts, driver training discounts or distant student discounts. Eligibility varies by company, so be sure to check if you or your child qualifies.
- Safe driver discounts: You might get a claims-free discount or a safe-driver discount if you haven’t filed any claims or had any tickets in the last three to five years. Additionally, save drivers might want to consider car insurance with telematics, which tracks your driving patterns and assigns a personalized discount.
- Other discounts: Perhaps one of the biggest discounts available is a home and auto bundle. Also often available as a condo or renters bundle, you may be able to get this discount by insuring your property and auto policies with the same company. You might also want to keep an eye out for payment discounts, like paid-in-full or automatic payments.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 2020 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.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2020 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.