Best car insurance in South Dakota for 2023

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

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.

If your car is leased or you have a car loan, your financial institution is likely to require you to carry collision and comprehensive insurance. Policies that include state-mandated minimums along with these two optional coverage types are considered full coverage. Full coverage policies protect your own vehicle as well as the other driver's auto in the event of an at-fault accident. If you have a car loan, you may also want to consider gap insurance. This option will cover the difference between the actual cash value of a new car that's been totaled and the amount of the car loan. It can help protect you from having to pay out-of-pocket expenses in the event that your car is a total loss after an accident.

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.

There are a handful of companies writing reliable car insurance policies in South Dakota, as we noted above. To find the one that is best for you, first consider your priorities. Is price your primary consideration or are you more interested in award-winning customer service? Do you have special circumstances, such as a high-risk driver in your household? Then look at the companies that excel at your chosen priorities and ask for quotes from several of them to find the one that offers the cheapest coverage for your purposes.

There are several companies offering some of the cheapest auto insurance in South Dakota, including Farmers Mutual of Nebraska, State Farm, North Star Mutual and USAA. Your premium is based on personal rating factors that are unique to you and your vehicle, including your age, gender and driving record, as well as your car's age, make and model. Because of this you will need to ask for quotes from a range of likely carriers to see who is able to offer you the lowest rate.

When it's time to purchase your South Dakota insurance policy, your agent will tell you what information you need to have at hand. In general, you will need to have the name, date of birth and driver's license number of all the licensed drivers in your household. You will need information about the vehicle you are insuring, such as the vehicle identification number (VIN), as well as the car's make and model. You will also need to know what types of optional coverage, if any, you want included on your policy, as well as the policy limits for liability that you'd like included on your coverage. Your agent can help you determine how much car insurance you need if you're not sure.