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Last updated: November 14, 2024
Car Insurance in South Dakota
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Table of Contents
- Minimum Required Car Insurance in South Dakota
- How Much Coverage to Get in South Dakota
- The Average Cost of Car Insurance in South Dakota
- Car Insurance Companies in South Dakota
- How to Save Money on Car Insurance in South Dakota
- Proof of Car Insurance
- South Dakota State Driving Laws
- Contact Information
- How Much Car Repairs Cost
- Crime and Traffic Fatality Rates in South Dakota
- Conclusion
- Frequently Asked Questions
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With only 679,711 licensed drivers, South Dakota has driving and car insurance laws that are relatively lax compared to other states. For example, South Dakota does not require regular vehicle safety inspections for privately owned vehicles, and while front seat passengers are required to wear seat belts, there is no law mandating seat belt use for adult passengers in the back seat.
However, there are still plenty of laws to be aware of, especially when it comes to car insurance. Here’s what you need to know, whether you’re a new driver or just new to the Mount Rushmore state.
Editor’s note (last updated October 2024): We have updated this guide with the latest pricing data, distracted driving laws, and driving statistics for the state of South Dakota.
Minimum Required Car Insurance in South Dakota
- Bodily injury liability: $25,000 per person, $50,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured motorist coverage: $25,000 per person, $50,000 per accident1
How Much Coverage to Get in South Dakota
South Dakota’s minimum coverage may not be enough if you cause an accident or are a victim of car theft, vandalism, or natural disasters. To better protect yourself, we recommend getting full coverage insurance in addition to the state-required liability insurance.
| Claim type | Full coverage | Liability-only coverage |
|---|---|---|
| Injury to passengers in the other car | Included | Included |
| Damage to the other car | Included | Included |
| Property damage | Included | Included |
| Collision | Included | Not included |
| Comprehensive | Included | Not included |
| Damage to your car | Included | Not included |
| Your injuries | Included | Not included |
| Your passenger’s injuries | Included | Not included |
Liability coverage only reimburses the other party’s losses in accidents where you’re at fault. To get your own losses covered, you’ll need collision insurance. You’ll also need comprehensive coverage to pay for non-collision damages to your car, like theft or vandalism.
Additionally, we recommend adding medical payments coverage to help cover medical bills for you and your passengers, even if you already have health insurance. MedPay can help with medical costs not covered by insurance, like ambulance rides, co-pays, and rehab.
The limit for collision and comprehensive coverage is your car’s actual market value; in other words, what you would get if you sold it tomorrow. We also recommend higher limits on your bodily injury, property damage, and uninsured motorist coverages: 100/300/100, or up to $500,000 if you have a high net worth.
The Average Cost of Car Insurance in South Dakota
At an average of $758 annually, minimum coverage in South Dakota is 39 percent higher than the national average. If you’re considering full coverage, it’s about 6 percent higher than the national average, with South Dakotans paying around $2,039 per year. While minimum coverage is always the cheapest option upfront, you may find yourself paying more out of pocket in the event of a claim. Instead of choosing the cheapest car insurance that only meets South Dakota’s minimum requirements, consider investing in higher coverage to save more later. For a more detailed analysis, read our guide to the best auto insurance in South Dakota.
Car Insurance Companies in South Dakota
Below are some of the car insurance companies that sell policies in South Dakota.
- Allied
- Allstate
- American Family
- Amica
- Auto-Owners
- Dairyland
- Farm Bureau
- Farmers
- Farmers Mutual of Nebraska
- GEICO
- Grinnell Mutual
- Iowa Farm Bureau
- Nationwide
- North Star Mutual
- Progressive
- State Farm
- The General
- USAA
- Western National
How to Save Money on Car Insurance in South Dakota
Talk to your agent
Your agent is the best person to ask about auto insurance discounts. If you have a teen driver, get a discount for their good grades. Get an early payer discount if you are okay with paying more upfront. Each company’s policies are different, so we recommend going straight to the source to find ways to save.
Bundle your policies
If you already have more than one policy — for example, a home and an auto policy — purchasing them from the same provider (also known as bundling) will likely lower your rates.
Lower your limits
The lower your liability limits, the lower your premiums, but keep in mind the financial responsibility you’ll have in an at-fault accident. Paying less now could mean paying more later.
Get rid of coverages
Similarly, dropping non-required coverages will save money now; but if something happens — for example, your car is stolen — you won’t receive any insurance compensation. Keep in mind, too, that if you haven’t paid off your vehicle, your lender may require you to hold comprehensive and collision coverage. If you drop it anyway, you might have to pay extra for forced-place insurance.
Increase your deductible
You can raise the deductible on your comprehensive and collision coverage to decrease your premium. Just make sure you can actually afford to pay that higher deductible in the event of a covered claim. Most collision deductibles are $500 or $1,000.
Proof of Car Insurance
If you’re caught driving without insurance in South Dakota, you could be charged with a Class 2 misdemeanor and face the following penalties.
- Fine: $500 maximum
- Imprisonment: Up to 30 days (in addition to or instead of the fine)
- License suspension: 30 days to one year, until you show proof of insurance
- License reinstatement fee: $50 to $200
- Registration suspension: Until you show proof of insurance
Proof of insurance can be either paper or electronic.
South Dakota State Driving Laws
Fault System
South Dakota’s at-fault insurance system means the person who caused an accident is responsible for the other party’s property damages and bodily injuries, as well as their own. Regarding negligence laws, the state is unique with slight-gross comparative negligence. That means the plaintiff, or the accident victim, can only recover money if they displayed “slight” negligence and the defendant displayed “gross” negligence.
However, the state legislature does not define percentages for what constitutes “slight” or “gross” negligence, so it’s up to the discretion of the judge to determine compensation, if any.
Uninsured Motorists
South Dakota requires uninsured motorist coverage (UIM), which pays for damages caused by uninsured drivers, as well as hit-and-runs. However, unlike some other states, you can’t stack coverage limits if you have multiple cars.
FYI
Only 8 percent of South Dakota’s drivers are uninsured, ranking South Dakota 43rd in the nation for percentage of uninsured drivers by state.2
Penalties for Driving Under the Influence
| Offense number | Crime classification | How long driving privileges are revoked | Requirements for restricted driving for employment, 24/7 sobriety testing, school, child care delivery or pickup, health appointments, court or probation, or counseling program attendance | Imprisonment term | Other requirements |
|---|---|---|---|---|---|
| 1 | Class 1 misdemeanor | 30 days to 1 year | SR-22 | None | Addiction counselor evaluation if you had a BAC 0.17% or higher |
| 2 | Class 1 misdemeanor | 1 year minimum | SR-22 and completion of a court-approved chemical dependency counseling program | 3 days minimum if found driving without license during restricted driving period | None |
| 3 | Class 6 felony | 1 year minimum | SR-22 and completion of a court-approved chemical dependency counseling program | 10 days minimum if found driving without license during restricted period | None |
| 4 | Class 5 felony | 2 years minimum | SR-22 and completion of a court-approved chemical dependency counseling program | 2 years minimum | Enrollment in alcohol or drug accountability program, ignition interlock, breath alcohol interlock, and/or alcohol monitoring bracelet. |
| 5 and up | Class 4 felony | 3 years minimum | SR-22 and completion of a court-approved chemical dependency counseling program | 4 years minimum | Enrollment in alcohol or drug accountability program, ignition interlock, breath alcohol interlock, and/or alcohol monitoring bracelet3 |
Seat Belt Laws
In South Dakota, people 18 and older are required to wear seat belts in the front seat only. Seat belts aren’t required in the back seat. The seat belt requirement is under secondary enforcement. That means, for law officers to issue a ticket for a seat belt violation, another violation would have to occur.
All children under five years old and who weigh less than 40 lbs must ride in a federally-approved car seat or booster. The state has a car seat distribution program for eligible families.5
Distracted Driving Laws
As of July 1, 2020, using a cell phone while driving in South Dakota is classified as a Class 2 misdemeanor. The violation is considered a primary offense, meaning law enforcement can stop drivers solely for this infraction. It carries a fine of $178.50. Exceptions include making hands-free phone calls, using a GPS app, or calling 911 in an emergency.
Teen Driver Restrictions
In South Dakota, teens can obtain a learner’s permit at the age of 14, the youngest age allowed in any state. However, they must wait until they turn 16 to qualify for a full, unrestricted driver’s license.
| Restriction | Learner’s permit | Restricted minor’s permit | Unrestricted license |
|---|---|---|---|
| Minimum age for learner’s permit | 14 | 14 (eligible after 180 days on learner’s permit with driver’s ed or 275 days on learner’s permit without driver’s ed) | 16 |
| Curfew | 10 p.m. to 6 a.m. unless a licensed parent/guardian 18 or older is in the front seat | 10 p.m. to 6 a.m. unless a licensed parent/guardian 18 or older is in the front seat | None |
| Supervision | If under 18: Parent/guardian or another licensed adult with 1 year of driving experience in front seat
If over 18: Any licensed adult with at least 1 year of driving experience in front seat |
Legal guardian during curfew hours. May drive alone after 10 pm if you are taking the most direct route and traveling to or from school, church, or work. | None |
| Passengers | The passenger in the front seat must be a parent/guardian or other adult with a valid driver’s license and at least 1 year of driving experience. | First 6 months of permit: No passengers outside of immediate family/household
After 6 months: 1 passenger who’s not part of your household |
None |
| Electronic devices | Can’t use any type of wireless communication device while driving | Can’t use any type of wireless communication device while driving | No cell phone use while driving, unless making a hands-free phone call, using a gps app, or calling 9116 |
When to File Claims
You have six years to file property damage claims and three years to file personal injury claims following a car accident — that is, if you want insurance coverage. While technically you can file claims after this statute of limitations, your insurance company isn’t obligated to cover you under your policy’s terms at that point.
Notification Laws: Cancellations and Non-Renewals
Can an insurance company in South Dakota cancel your insurance at any time? The answer is yes, and for any reason during the first 60 days of your policy. After the first 60 days, an insurer can only cancel your policy due to nonpayment, fraud, misrepresentation, or a revoked or suspended license. That said, the company must provide you with 20 days’ notice before canceling your policy.
Non-renewals aren’t as highly regulated, as they just entail a company not renewing a policy at the end of its term. Still, the insurer must give you 60 days’ notice before your coverage ends.
Self-Insurance: Is It Allowed?
While all states allow some form of self-insurance, the majority require that you own a minimum amount of vehicles, usually 25. South Dakota doesn’t have this minimum vehicle requirement, but it does require that you put down $175,000 in collateral instead.7 If you don’t have this money lying around, the personal auto insurance route is best for you.
Are Car Inspections Required in South Dakota?
South Dakota doesn’t require regular safety or emissions inspections for the majority of cars. It only requires inspections for rebuilt or salvaged vehicles. You’ll need to repair your salvage vehicle to get car insurance, but an inspection is the first step.
- Fill out the Application for Rebuilt Motor Vehicle: https://www.state.sd.us/eforms/secure/eforms/E2431V1-SDApplicationForRebuiltMotorVehicle.pdf.
- Mail it to this address:
- State of South Dakota Department of Motor Vehicles
445 E. Capitol Ave.
Pierre, SD 57501
- State of South Dakota Department of Motor Vehicles
- Wait to hear back and schedule an appointment at the inspection station closest to you. There are only three inspection stations in all of South Dakota, and each is open only once a month.
| Sioux Falls Inspection Station | Pierre Inspection Station |
Rapid City Inspection Station | |
|---|---|---|---|
| Address | 300 S. Sycamore Ave., Suite 102 Sioux Falls, SD 57110 |
445 E. Capitol Ave. Pierre, SD 57501-3185 |
1520 Haines Ave., Suite 3 Rapid City, SD 57701 |
| Phone number | 605-367-5800 | 605-773-3311 | 605-394-2332 |
| Email address | bustax@state.sd.us | bustax@state.sd.us
specialT@state.sd.us |
bustax@state.sd.us |
| When inspections take place | First Wednesday of every month | Second Wednesday of every month | Third Wednesday of every month |
- Pay the $25 inspection fee.
- The South Dakota Department of Revenue will inspect your vehicle and, if it passes, give you a certificate. You’ll need to send a copy of the certificate to your local county treasurer’s office in order to register your car: https://dor.sd.gov/government/county-treasurers/contact-county-treasurers/.8
SR-22s in South Dakota
Like many states, if you commit a serious driving violation in South Dakota, you will be required to file an SR-22 form with the state. This certificate proves that you carry the minimum required insurance coverage and it is required when your license has been suspended or revoked for being convicted of any of these offenses:
- Driving without insurance
- Vehicular homicide
- Driving under the influence
- A second offense of reckless driving in a one-year period
You’ll need to maintain the SR-22 for three years following the reinstatement of your license. Your insurance can file the form on your behalf for a small fee. Expect higher auto insurance premiums when you have an SR-22, as it means you’re classified as a high-risk driver.
Defensive Driving Courses
Defensive driving is a method of avoiding hazards on the road. It includes practices like leaving enough space between you and the car in front of you and avoiding aggression. In South Dakota, defensive driving courses are four to eight hours long. Depending on the provider, completing a defensive driving course in South Dakota may qualify drivers for an auto insurance discount. Unlike in some states, South Dakota does not offer a point reduction system for completing a defensive driving course. In other states, point reductions serve as an incentive to encourage drivers to take the course after receiving traffic violations. Find a course near you at https://www.nsc.org/safety-training/defensive-driving/courses/online.
Civil Suit Thresholds
In South Dakota, there’s no dollar minimum to sue for compensation in a civil trial. Similarly, there’s no severity of injuries threshold you’ll have to meet. Your negligence must be slight to receive compensation, but the state imposes no monetary or serious injury threshold for civil suits. As mentioned above, South Dakota follows a slight-gross comparative negligence system, which means a plaintiff can only recover compensation if their negligence is “slight” in comparison to the defendant’s “gross” negligence.
When You Must Report a Car Accident
Do you need a police report for an insurance claim? Not necessarily, although it will bolster your case. However, in South Dakota, you must report an accident to the police immediately if it involves any of the following:
- Death
- Injury
- Over $1,000 of property damage to one person’s property
- Over $2,000 of total property damage
- A parked vehicle is damaged and the driver can’t immediately contact the owner
- Unattended property is damaged and the driver can’t identify the owner
NOTE
If you don’t report an accident that meets these conditions immediately, you could be charged with a Class 2 misdemeanor, which has a penalty of a $500 fine, up to 30 days in jail, or both.
Credit Scores & Gender
Certain states ban insurance companies from determining car insurance premiums based on credit scores and gender. However, South Dakota is not one of those states. Drivers with poor credit and male drivers—especially young male drivers—typically pay higher premiums compared to those with good credit or female drivers.
Total Loss Formula
Not all cars are worth repairing. In South Dakota, a car is declared a total loss under these conditions:
- It cannot be repaired safely.
- The repairs would cost more than the vehicle’s value.
- The salvage value is less than the cost of the repair (the total loss formula).
Contact Information
How to Register Your Car in South Dakota
If you’ve purchased a new car, you must register it with the South Dakota Department of Revenue within 45 days of your purchase date.
You can expect to pay the following registration fees in South Dakota
- One-time 4 percent motor vehicle excise tax upon purchase of vehicle
- Annual $50 fee for electric vehicles only
- Vehicle registration charges, which depend on weight of the vehicle, and often range from $30 to $42 per year for vehicles weighing between 2,000 – 4,000 lbs
- For renewals: renewal fee, plus any applicable late fees
FYI:
South Dakota is one of ten states that allows non-residents to register vehicles in the state. As of July 1, 2024, non-residents who title vehicles in South Dakota must pay an additional $100 fee.
You have a few registration methods to choose from.
| Details | Registering in person | Registering by mail | Registering online | Registering at Now License Renewal Kiosk |
|---|---|---|---|---|
| Contact information | County treasurer’s office: https://dor.sd.gov/government/county-treasurers/contact-county-treasurers/ | State of South Dakota Motor Vehicle Division 445 E. Capitol Ave. Pierre, SD 57501 |
https://apps.sd.gov/RV66Portal/userlogin.aspx?ReturnUrl=%2frv66portal% | https://sddmvnowkiosk.com/ |
| Documents you’ll need |
|
|
|
|
| Accepted payment methods | N/A |
|
N/A | Credit/debit card from Discover, Mastercard, or Visa |
| Additional Processing Fees | N/A |
|
|
|
How to Get a Copy of Your Car Title in South Dakota
- Print out the form at https://sddor.seamlessdocs.com/f/1002.
- Get it notarized if you aren’t the vehicle owner.
- Submit the $10 fee.
- Send the form and fee to your local county clerk’s office, which you can locate at https://dor.sd.gov/government/county-treasurers/contact-county-treasurers/.
- How to Contact the South Dakota Division of Insurance
- Email: sdinsurance@state.sd.us
- Phone number: 605-773-3563
- Address:
South Dakota Division of Insurance
124 S. Euclid Ave. #2
Pierre, SD 57501
How Much Car Repairs Cost
Car repairs in South Dakota cost about 16.2 percent less than the national average.9 The average total car repair cost in South Dakota is $377.64, which breaks down into $147.27 for labor and $230.37 for parts.10
Crime and Traffic Fatality Rates in South Dakota
Auto Theft Rate
With an annual rate of 248 motor vehicle thefts per 100,000 residents in South Dakota, South Dakota ranks 23rd among states with the highest auto theft rates. The rates in cities like Rapid City and Sioux Falls were even higher.
| Metropolitan statistical area | Rate of motor vehicle theft by 100,000 inhabitants in 2022 |
|---|---|
| Rapid City, SD | 398 |
| Sioux Falls, SD | 403 |
| Sioux City, IA-NE-SD | 23211 |
Keep in mind that car insurance covers theft only if you have comprehensive coverage. If you lack comprehensive coverage and your car is stolen, you’ll be responsible for buying a new car on your own.
Motor Vehicle Death Rate
One advantage of such a small and low-density population is a lack of motor vehicle deaths. According to early estimates from the National Highway Traffic Safety Administration, South Dakota’s motor vehicle fatality rate for the first quarter of 2024 is projected to decrease by 14.3 percent compared to the previous year. The estimated fatality rate per 100 million vehicle miles traveled in South Dakota is expected to decrease to .83 in 2024, down from 1.01 in 2023.12
Conclusion
Interested in driving outside of the Mount Rushmore State, maybe up north? Enjoy our guide to car insurance in North Dakota. If you prefer to learn more about South Dakota, read our frequently asked questions below.
Frequently Asked Questions
Does insurance follow the car or the driver in South Dakota?
Insurance follows the car, not the driver, in South Dakota. That means anyone who drives your car with permission can be covered for any accidents they cause or are a victim of.
Who has the best cheap car insurance in South Dakota?
Overall, State Farm offers the most affordable rates for full coverage auto insurance in South Dakota, while USAA offers the best rates for minimum coverage. Keep in mind, however, that the cheapest auto insurance you are going to find will depend on various factors, like whether you’re a teen driver, have a DUI, are bundling policies, or have recently gotten a speeding ticket in South Dakota. For example, for drivers with low credit in South Dakota, Nationwide typically provides the best rates.
How much is car insurance for teens in South Dakota?
Car insurance for teens in South Dakota costs an average of $4,850 per year, although it can range from $3,272, all the way up to $$7,809. The high cost of insurance for teenage drivers is due to their lack of driving experience and statistical likelihood of engaging in risky behaviors, making them high-risk for insurance companies.
How soon do I need to get insurance for a newly purchased used car in South Dakota?
To drive your newly purchased used car off the lot in South Dakota, you’ll need to buy insurance beforehand. Otherwise, you can buy the car but not drive it legally, as the state requires proof of financial responsibility.
Senior Writer & Editor
A seasoned journalist and content strategist with over 10 years of editorial experience in digital media, Aliza Vigderman has written and edited hundreds of articles on the site, covering everything from plan coverages to discounts to state laws. Previously, she was a senior editor and industry analyst at the home and digital security website Security.org, previously called Security Baron. She has also contributed to The Huffington Post, SquareFoot, and Degreed. Aliza studied journalism at Brandeis University.
Citations
Automobile Insurance. South Dakota Department of Labor & Regulation. (2016).
https://dlr.sd.gov/insurance/general_guidance/auto.aspxFacts + Statistics: Uninsured motorists. Insurance Information Institute. (2024).
https://www.iii.org/fact-statistic/facts-statistics-uninsured-motoristsCodified Laws. South Dakota Legislature. (2024).
https://sdlegislature.gov/Statutes/32-23Child Safety Seat Distribution Program. South Dakota Department of Social Services. (2024).
https://dss.sd.gov/childcare/childsafetyseat/Teen Drivers. South Dakota Department of Public Safety. (2024).
https://dps.sd.gov/driver-licensing/south-dakota-licensing-information/teen-drivers/MOTOR VEHICLE FINANCIAL RESPONSIBILTY . Legislative Research Council. (2024).
https://mylrc.sdlegislature.gov/api/Documents/Issue%20Memo/124588.pdfVehicle Inspection. South Dakota Department of Revenue. (2024).
https://dor.sd.gov/individuals/motor-vehicle/rebuilt-vehicles/#inspectThe U.S. States and Cities that Pay the Biggest Premium for Car Repairs. Net Credit. (2024, Mar 19).
https://www.netcredit.com/blog/car-repair-costs-by-state/Auto Repair Rates by State 2024. World Population Review. (2024).
https://worldpopulationreview.com/state-rankings/auto-repair-rates-by-state‘Hot Spots’ Report Shows Vehicle Theft Rates Spiking in Different Regions of the U.S.. National Insurance Crime Bureau. (2023, Oct 25).
https://www.nicb.org/news/news-releases/hot-spots-report-shows-vehicle-theft-rates-spiking-different-regions-usEarly Estimate of Motor Vehicle Traffic Fatalities for the First Quarter of 2024 . NHTSA. (2024, June).
https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813598
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