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Last updated: February 10, 2026Best Auto Insurance in South Dakota of 2026
Farmers Mutual of Nebraska, State Farm, USAA, Progressive, and Auto-Owners are our top picks for car insurance in South Dakota.
Cheapest for Minimum Coverage
Editor's Rating:
4.7/5
4.7/5Full Coverage Averages in South Dakota
- Annual Premium: $1,836
- Monthly Premium: $153
Best Major Insurer
Editor's Rating:4.9/5
4.9/5Full Coverage Averages in South Dakota
- Annual Premium: $2,083
- Monthly Premium: $174
Best for Military and Veterans
Editor's Rating:5/5
5/5Full Coverage Averages in South Dakota
- Annual Premium: $2,042
- Monthly Premium: $170
Key Takeaways
- Our pick for the best value car insurance in South Dakota is Farmers Mutual of Nebraska. Drivers should also consider State Farm, USAA, Progressive, and Auto-Owners, depending on their needs and preferences.
- South Dakota auto insurance costs right around the national average for full coverage at $2,378 per year. Minimum coverage is much cheaper than the national average at $456 per year.
- Average rates like those included here can provide a useful starting point in your insurance search, but keep in mind that the rate you’re quoted will vary based on factors like age and driving history.
Summary of the Best Auto Insurance in South Dakota
- Cheapest for Minimum Coverage: Progressive
- Best Major Insurer: State Farm
- Best for Military and Veterans: USAA
- Cheapest for Full Coverage: Farmers Mutual
- Best for Add-Ons: Auto-Owners
Compare the Best Cheap Auto Insurance in South Dakota
| Company | Full Coverage Monthly Avg. in SD | Minimum Coverage Monthly Avg. in SD | Central customer satisfaction (J.D. Power) |
|---|---|---|---|
| Progressive | $153 | $22 | Below average |
| State Farm | $174 | $29 | Above average |
| USAA | $170 | $23 | Above average |
| Farmers Mutual of Nebraska | $100 | $25 | Not rated |
| Auto-Owners | $208 | $34 | Below average |
| South Dakota | $198 | $38 | – |
Breaking Down the Best Cheap Auto Insurance in South Dakota
1. Cheapest for Minimum Coverage - Progressive
What We Like Most:
- Affordable rates in South Dakota
- Many discounts available
- Highly-rated digital tools
Why we chose it
Progressive has the cheapest average rates for minimum coverage in South Dakota, and the second-cheapest for full coverage after Farmers Mutual of Nebraska. If you’re on a budget, it’s a good option. (Keep in mind that exactly how much you pay depends on your personal driver profile, so the best way to find the lowest rates is to compare quotes).
Like most states, South Dakota allows auto insurance companies to use credit history to determine your premium. Credit history helps insurers estimate an applicant’s likelihood of filing a claim. We found that Progressive has more affordable rates than most providers when insuring drivers with bad credit. It offers a wide variety of coverages and discounts for many types of drivers.
Another benefit of Progressive is its accident forgiveness coverage, which prevents your auto insurance premium from increasing after an accident. Progressive has three tiers of accident forgiveness, two of which are free. Small accident forgiveness is included in your policy automatically and forgives your first claim that’s less than or equal to $500. If you’ve been accident-free for five years, you will qualify for large accident forgiveness, which forgives a claim even over $500. You can also purchase accident forgiveness as a policy add-on.
THE MORE YOU KNOW
In South Dakota, insurers can’t apply comparative negligence (say you were partially at fault) just because you were on the scene.1 Still, it’s important to gather evidence like taking photos and filing a police report.
Who it’s best for
Drivers with poor credit, drivers who want to manage their policy online, those looking for minimum coverage
Progressive South Dakota Pricing
| Progressive | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $153 | $22 |
| Annually | $1,836 | $269 |
| Difference from South Dakota average | -23% | -41% |
2. Best Major Insurer - State Farm
What We Like Most:
- Excellent third-party ratings
- Competitive rates in South Dakota
- Multiple ways to save
Why we chose it
State Farm offers cheaper than average insurance rates in South Dakota for most driver categories, including for both full and minimum coverage, as well as for drivers with violations. It also has several discounts for policyholders to take advantage of, including for bundling policies, going three years or more without moving violations or at-fault accidents, and driving safely with its Drive Safe & Save telematics program.
State Farm ranked second for customer satisfaction for the Central region, which includes South Dakota, in J.D. Power’s U.S. Auto Insurance Study, making it a great option for drivers who want to work with a major national insurer without sacrificing customer service. It also ranked third in J.D. Power’s 2025 Insurance Shopping Study among large insurers.2 With strong financial stability scores and local agents, State Farm delivers solid customer service regardless of your driving record.
Who it’s best for
Drivers looking to work with a local agent, those who prefer to purchase a policy from a national insurer, customers who bundle policies or insure multiple vehicles
State Farm South Dakota Pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $174 | $29 |
| Annually | $2,083 | $343 |
| Difference from South Dakota average | -12% | -25% |
3. Best for Military and Veterans - USAA
What We Like Most:
- Affordable for high-risk drivers
- Low rates for families with teens
- Military-specific coverages
Why we chose it
USAA is our pick for the best auto insurance for military and veterans — and it caters specifically to that group. You can also qualify if your spouse or parent is a member. USAA has some of the cheapest rates in South Dakota for those eligible, including for young drivers. As in many states, teen drivers pay higher rates in South Dakota than adult drivers due to their lack of driving experience.
USAA’s average rate for teens is 33 percent below the state average. It also offers a discount when young drivers transition from their parents’ USAA policy to their own policy. USAA has two telematics programs, SafePilot and SafePilot Miles, that customers can participate in to lower their rates. The former provides a discount of 10 percent just for signing up, and up to 30 percent off at renewal based on how safely you drive. SafePilot Miles tracks how safely you drive and also provides a discount for driving less than average.
FYI
In South Dakota, teen drivers can get their learner’s permit at 14 — the youngest any state allows. Teens can get a full license at age 16.3
Who it’s best for
Active-duty military, veterans, and their families, teen drivers of parents in the military, low-mileage drivers
USAA South Dakota Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $170 | $23 |
| Annually | $2,042 | $273 |
| Difference from South Dakota average | -14% | -40% |
4. Cheapest for Full Coverage - Farmers Mutual
What We Like Most:
- Cheap rates for most driving profiles
- High financial strength ratings
- Wide network of agents across South Dakota
Why we chose it
Farmers Mutual of Nebraska, more commonly known as FMNE Insurance, is based in Nebraska but operates in North Dakota and South Dakota as well. It offers auto, motorcycle, RV, home, and farm insurance. Its auto policies include standard coverages, such as liability, comprehensive, collision, medical payments, and uninsured motorist coverage. FMNE Insurance sells policies through agents throughout the state, making it ideal for those who want personalized service and don’t need bells and whistles on their policy.
Although it is not rated on larger industry studies like J.D. Power, it has an NAIC Complaint Index of 0.42, which indicates that it receives far fewer complaints than average. It also has the cheapest average rates in South Dakota for most driver profiles. Its discount opportunities include savings for bundling auto with another policy type, insuring two or more cars, and having safety equipment installed in your car. Drivers under 21 can get a discount for completing an approved driver’s education course, and drivers under 25 can save for having a strong academic record.
Who it’s best for
Those looking for the cheapest rates, drivers who want to work with a regional provider, those who only need standard coverages
Farmers Mutual of Nebraska South Dakota Pricing
| Farmers Mutual of Nebraska | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $100 | $25 |
| Annually | $1,194 | $302 |
| Difference from South Dakota average | -49% | -34% |
5. Best for Add-Ons - Auto-Owners
What We Like Most:
- Robust add-on coverages
- Savings for young drivers
- High regional customer service ratings
Why we chose it
Auto-Owners offers robust auto insurance coverage and discount offerings for South Dakota drivers. It is also one of only four companies (excluding USAA) to rank above average for customer satisfaction in the Central region in J.D. Power’s study. Auto-Owners has all of the standard coverages you’d expect from an auto insurer, as well as various add-ons. These include roadside assistance, gap insurance, rental reimbursement, diminished value coverage, and accident forgiveness.
Auto-Owners offers several discounts to help drivers save, such as multi-policy, multiple car, and paid-in-full discounts. You can also save by paying your premiums on time for 36 months, enrolling in paperless billing, and having a favorable loss history. Young drivers can lower their premiums with Auto-Owners’ good student and distance student discounts, as well as its teen driver monitoring discount, which relies on a permanently installed GPS in the car the teen uses or an eligible mobile app.
Who it’s best for
Drivers with new vehicles, homeowners, those looking for many policy customization options
Auto-Owners South Dakota Pricing
| Auto-Owners | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $208 | $34 |
| Annually | $2,492 | $410 |
| Difference from South Dakota average | +5% | -10% |
Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Central4 | CRASH Network Report Card5 | J.D. Power Claims Satisfaction6 | NAIC Complaint Index7 |
|---|---|---|---|---|
| Progressive | 637 | C | 673 | 2.79 |
| State Farm | 664 | C- | 716 | 2.46 |
| USAA | 719 | D+ | 741 | 3.10 |
| Farmers Mutual of Nebraska | Not rated | Not rated | Not rated | 0.42 |
| Auto-Owners | 654 | B | 711 | 1.05 |
| Average | 649 (out of 1,000) | C+ | 700 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
Average Cost of Auto Insurance in South Dakota
Average Full Coverage Rates in South Dakota
Full coverage car insurance in South Dakota costs an average of $2,378 per year or $198 per month. That’s right around the national average of $2,356 per year.
| Category | Full coverage average (annual) | Full coverage average (monthly) |
|---|---|---|
| South Dakota Average | $2,378 | $198 |
| National Average | $2,356 | $196 |
Minimum Coverage
Minimum coverage car insurance in South Dakota is affordable compared to the national average at only $456 yearly. That’s 37 percent cheaper than the national average.
| Category | Minimum coverage average (annual) | Minimum coverage average (monthly) |
|---|---|---|
| South Dakota Average | $456 | $38 |
| National Average | $722 | $60 |
Cost of Auto Insurance in South Dakota by City
Car insurance rates depend on several factors, including location. Rates can vary by city, sometimes significantly, depending on the state. In South Dakota, rates are relatively stable across major cities, likely due to the fact that its largest city still only has a population of around 225,000 people, so there is less traffic congestion. Of the cities we analyzed, Mitchell had the highest average rates at $1,960 per year, while Brookings had the lowest at $1,811 per year.
| City | Average Annual Premium | Average Monthly Premium |
|---|---|---|
| Mitchell | $1,960 | $163 |
| Sioux Falls | $1,929 | $161 |
| Aberdeen | $1,884 | $157 |
| Watertown | $1,819 | $152 |
| Brookings | $1,811 | $151 |
How Many Car Accidents Happen in South Dakota?
According to data from the South Dakota Department of Public Safety, there were 18,686 total crashes in the state in 2024.8 There were 134 fatal crashes, 3,487 that involved injuries, and 15,065 that were property damage only. Alcohol was involved in 5 percent of all crashes but 38 percent of fatal crashes. Most people killed in alcohol-involved crashes were between the ages of 21 and 29. The majority of crashes occurred in November, January, and October.
Minimum Auto Insurance Requirements in South Dakota
South Dakota requires that drivers have at least these minimum coverage limits on their auto insurance policy:
- Bodily injury liability: $25,000 per person/$50,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured/underinsured motorist coverage: $25,000 per person/$50,000 per accident
These minimum coverage limits are required to legally drive in South Dakota, but they offer very limited protection. While minimum coverage premiums cost less than full coverage, you could be on the hook for significant expenses if you cause an accident without adequate coverage. It’s wise to get higher limits if you can afford to.
The mandated uninsured motorist coverage covers you if you’re hit by a driver without insurance (or without sufficient insurance). Your uninsured motorist coverage limits generally match your liability limits, so increasing one will increase the other.
Methodology
To identify the best auto insurance companies in South Dakota, we evaluated providers across four areas: pricing, claims handling, customer experience, and coverage options. Here’s a breakdown of how each was assessed:
- Pricing (40%): We analyzed average annual premiums for full and minimum coverage for a good driver profile in South Dakota. We also looked at average rates for high-risk driver profiles in the state, including those with an accident, speeding ticket, or poor credit. Additionally, we considered available discounts and whether major opportunities like bundling, good student, and telematics discounts are offered. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): We considered third-party evaluations from sources like J.D. Power’s Claims Satisfaction Report and financial strength ratings from AM Best and Moody’s, which reflect an insurer’s ability to pay claims.
- Customer Experience (25%): The overall experience of obtaining a quote, purchasing a policy, and interacting with the insurer as an existing customer was evaluated based on: regional customer satisfaction scores (J.D. Power U.S. Auto Insurance Study and Digital Experience Study), complaint data from the National Association of Insurance Commissioners (NAIC), and Better Business Bureau (BBB) ratings.
- Coverage Options (10%): We value insurers that provide additional protection beyond legally-required coverage in South Dakota, through optional endorsements like: gap insurance, rideshare coverage, accident forgiveness, and other offerings.
Read more about our ratings and methodology.
Frequently Asked Questions
The cheapest car insurance in South Dakota is $269 per year for the average minimum coverage policy from Progressive. The cheapest full coverage is from Farmers Mutual of Nebraska, also called FMNE Insurance, at $1,194 per year.
No, South Dakota is not a no-fault state. South Dakota is an at-fault state, meaning the insurance company of the driver responsible for the accident pays for liability damages.
Yes, it is illegal to drive without insurance in South Dakota. Driving without proof of insurance or financial responsibility is a class 2 misdemeanor and could result in up to $1,000 in fines, reinstatement fees, license suspension, and even jail time.
Citations
Auto Insurance – General Guidance. South Dakota Division of Insurance. (2025).
https://dlr.sd.gov/insurance/general_guidance/auto.aspx2025 U.S. Insurance Shopping Study. J.D. Power. (2025).
https://www.jdpower.com/business/press-releases/2025-us-insurance-shopping-studySouth Dakota DPS – Traffic Crash Information. South Dakota Department of Public Safety. (2025).
https://www.sd.gov/dps?id=cs_kb_article_view&sysparm_article=KB0043735&sys_kb_id=a8acbe751b887a10ff55631ee54bcb11&spa=1It’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, June 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyInsurer Report Card – Top Rated U.S. Car Insurance Companies for 2025. CRASH Network. (2025).
https://www.crashnetwork.com/irc/2025 U.S. Auto Claims Satisfaction Study. J.D. Power. (2025).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2025).
https://content.naic.org/cis_refined_results.htmCrash Data. SafeSD / South Dakota Department of Public Safety. (2025).
https://www.safesd.gov/#crash-data
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