Car Insurance in South Dakota

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.

Penalties for Driving Under the Influence

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.

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.

1. Fill out the Application for Rebuilt Motor Vehicle: https://www.state.sd.us/eforms/secure/eforms/E2431V1-SDApplicationForRebuiltMotorVehicle.pdf.
2. Mail it to this address:
   • State of South Dakota Department of Motor Vehicles
     445 E. Capitol Ave.
     Pierre, SD 57501
3. 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.

1. Pay the $25 inspection fee.
2. 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

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).

You have a few registration methods to choose from.

How to Get a Copy of Your Car Title in South Dakota

1. Print out the form at https://sddor.seamlessdocs.com/f/1002.
2. Get it notarized if you aren’t the vehicle owner.
3. Submit the $10 fee.
4. 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/.
5. 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