Best Auto Insurance in South Dakota 2025

Along with USAA, State Farm offers the lowest average insurance rates in South Dakota for drivers in all categories except those with low credit. It’s a solid option for drivers in the state.

Affordable Auto Insurance for Everyone

Our analysis found that for most driver categories, State Farm had the cheapest average rates in South Dakota. For some categories — households with teen drivers and minimum coverage — USAA had cheaper rates, though the provider is only available to military members, veterans, and their families. One notable exception is the low credit category, in which State Farm had some of the highest average premiums in South Dakota.

Savings After a DUI

On average, a DUI will increase your insurance rates by over 80 percent in South Dakota — from $177 monthly with a clean record to $369 monthly with a DUI (for full coverage). State Farm’s average rates in South Dakota are the lowest among the insurers we analyzed, at just $185 monthly. Progressive also had low average rates with a DUI, at $188 monthly.

Customer Satisfaction

State Farm ranked third in J.D. Power’s 2025 Insurance Shopping Study among large insurers¹. The company also ranked second in the Central Region, which includes South Dakota, in J.D. Power’s 2025 U.S. Auto Insurance Study². With strong financial stability scores and local agents, we are confident in State Farm’s customer service options—which shouldn’t change regardless of your driving record.

USAA is our best auto insurance for military and veterans—and it caters specifically to that group. You can qualify if your spouse or parent is a member.

Who Qualifies for USAA

The following people are eligible for USAA membership:

• U.S. military members and veterans, including active-duty, guard, reserve members, and veterans who are separated or retired from the U.S. Armed Forces with an honorable or general under honorable conditions discharge
• Precommissioned officers, including contracted cadets or midshipmen attending a U.S. service academy, affiliated academy preparatory school, advanced ROTC program, or officer or warrant officer candidates commissioning within 24 months
• Spouses, children, and stepchildren of USAA members, unmarried former spouses of USAA members, and widows/widowers of USAA members

Cheap Rates for South Dakota Teens

As in many states, teen drivers tend to pay higher rates in South Dakota than adult drivers. Due to their lack of driving experience, teens are more likely to get into crashes than any other age group, which is why insuring them is so expensive.

USAA offers the cheapest average rates for a policy with teen drivers, at $305 monthly. State Farm had the next cheapest rates, at $371 monthly. USAA also offers a discount when young drivers transition from their parents’ USAA policy to their own policy.

Low Rates After a Ticket

On average a speeding ticket in South Dakota increases your insurance rates by 19 percent, to $211 monthly for full coverage. USAA has the cheapest average rates with a speeding ticket, at $152 monthly.

One of the most important factors in choosing a car insurance provider is an excellent claims process. We chose Nationwide since it scored the highest for claims satisfaction among the companies on our list. It offers lower-than-average rates for those with a clean record, along with a great pay-per-mile program for low mileage drivers and top-rated digital tools.

Strong Claims Satisfaction Ratings

In 2023, there were 18,796 reported car crashes in South Dakota, which resulted in about 162 million dollars in property damage⁴. If you regularly drive in the Mount Rushmore State, it’s important to have an insurer with a smooth claims process after an accident.

Nationwide ranked fourth in J.D. Power’s Claims Satisfaction study, which surveyed over 9,000 car insurance customers across the country. It scored 18 points higher than State Farm, the second-highest ranking provider on our list, and 31 points higher than the study average. Based on Nationwide’s ratings, you can expect a timely and effective claims process.

Nationwide’s Digital Tools

Nationwide also scored the top spot for service in J.D. Power’s 2025 U.S. Insurance Digital Experience Study⁵. This study measures the success of auto insurance websites and apps when drivers are shopping for insurance and after they become customers. The survey evaluates navigation, speed, visual appeal, and information/content for desktop, mobile web, and mobile apps. Between shopping and service, a higher ranking in the service section bodes well for long-term customers, as the experience doesn’t stop after you get an online quote.

Working with a Nationwide Agent

Nationwide works with independent agents who may represent multiple carriers, allowing clients to shop across companies and compare rates. This contrasts with captive agents, like those who work for State Farm and only offer State Farm products. Both options have drawbacks, but consulting an agent could get you closer to your perfect auto insurance policy. Nationwide has insurance agents in over 50 cities in South Dakota, including Sioux Falls, Rapid City, and Aberdeen.

Like most states, South Dakota allows auto insurance companies to use credit scores to determine your premium. Credit scores help insurers guess an applicant’s likelihood of filing a claim. We found that GEICO has more affordable rates than most providers when insuring drivers with bad credit. It offers standard coverages, discounts, and customer service products for many types of drivers.

Cheap Rates for Drivers with Poor Credit

Auto insurance companies equate bad credit scores with a higher likelihood of making late payments and a higher frequency of claims. Among all the providers on our list, GEICO has the lowest average rates in South Dakota for drivers with poor credit (excluding USAA, which is only available to military members and families). This is consistent with our national data set, which includes Allstate, and other popular auto insurance providers like Progressive and Travelers.

Accident Forgiveness + Coverage After an Accident

Accident forgiveness is an add-on coverage that prevents your auto insurance premium from increasing after an accident. If you’ve been accident-free for five years and are over 21 years old, you qualify. Your first accident with a GEICO policy won’t affect your future premiums.

One lesson to learn after an accident: opt for the extra coverage. Here are some additional coverage options you may consider adding to your policy after an accident—or before, just in case:

• Emergency road service: GEICO provides 24/7 roadside assistance and helps pay for towing, tire changes, and jump-starts.
• Rental car reimbursement: GEICO covers the cost of renting a car until your damaged vehicle is fixed or until your reimbursement limit runs out, whichever comes first.
• Mechanical breakdown insurance: GEICO will pay for any costs for repairs, replacement parts, or mechanical issues for new or leased vehicles that are less than 15 months old and have less than 15,000 miles.

Extensive List of Discounts

In addition to offering the lowest premiums for those with poor credit, GEICO also has a robust offering of discounts. Even if your high-risk status raises your rates, you can qualify for multiple discounts on your policy.

GEICO’s list includes:

• Autopay discount, for setting up recurring policy payments
• Defensive driving, for completing a state-approved defensive driving course
• Early shopper discount, for signing up for a policy before your current policy ends
• Federal employee discount
• Good student, for being a full-time student with good academic performance
• Homeownership discount
• Internet quote, for getting an online quote
• Military discount
• Multi-policy discount
• Multi-vehicle discount
• New vehicle discount, for owning a car that’s less than three years old
• Paid in full discount
• Paperless discount
• Telematics discount (GEICO DriveEasy)

Farmers is one of the largest auto insurers in the nation, serving nearly 20 million policies. With a good discount for bundling home and auto and high property claims satisfaction rates, Farmers is a good option for South Dakotans looking to insure both their home and vehicle.

Bundling Discount

Farmers offers discounts to reduce the burden of your auto insurance premiums. Farmers’ bundling discount is one of the highest we’ve seen in the industry: up to 20 percent off if you bundle home or renters insurance with your auto insurance policy.

High Property Claims Satisfaction

In addition to the financial benefits, bundling with Farmers provides a streamlined experience. Customers can manage all their insurance needs through a single provider, simplifying the process of updating information, making payments, and filing claims. In addition to standard home coverage, Farmers offers:

• Guaranteed Replacement Cost, which guarantees Farmers will pay the full cost of repairs for your home, even if they exceed your policy limits
• Water Backup and Sump Overflow, which pays for water damage caused by backups through drains or sumps
• Emergency Mortgage Assistance, which covers up to three mortgage payments ($10,000 total) if your home is uninhabitable after a covered loss
• And more

In J.D. Power’s 2024 U.S. Property Claims Satisfaction Study, Farmers ranked above the industry average (869 out of 1,000) with a score of 883, securing the fourth position overall.⁶ This recognition highlights the company’s ability to efficiently and fairly handle homeowners insurance claims.

Accident Forgiveness + Coverage After an Accident

Accident forgiveness is an add-on coverage that prevents your auto insurance premium from increasing after an accident. If you have a clean record but want the assurance that an accident won’t affect your future premiums, opt for this coverage from Farmers. Farmers will forgive one at-fault accident every three years.

One lesson to learn after an accident: opt for the extra coverage. Here are some additional coverage options you may consider adding to your policy after an accident—or before, just in case:

• Towing and roadside assistance: Farmers provides 24/7 roadside assistance and helps pay for towing, tire changes, and jump-starts.
• Rental car reimbursement: Farmers pays the cost of renting a car for up to 30 days while yours is repaired after a covered loss.
• Loss of use coverage: Farmers will provide a flat sum for transportation if you can’t use your vehicle after a covered claim.
• Glass deductible buyback: Farmers offers a $100 deductible for windshield and glass repairs/replacements.
• Full windshield and glass coverage: The same as above with a $0 deductible, so you pay nothing out of pocket.
• Original equipment manufacturer (OEM): This will cover the cost of factory-original repair parts for cars up to 10 years old. It’s a good coverage for people who drive vehicles like Teslas, with expensive or unique parts.
• New car replacement coverage: If your car is totaled within the first two model years and under 24,000 miles, you can replace it with a new car of the same make and model.
• Residual debt coverage (similar to GAP coverage): If your insured car is a total loss and the actual cash value (ACV) is less than the remaining balance on your auto loan, Farmers will pay up to 25 percent above the ACV to help you pay off your loan.

Allstate’s auto insurance commercials reassure us that we’re “in good hands with Allstate.” But, if you were one to decide based on marketing alone then you wouldn’t be this far into the article! There are many options for South Dakota drivers looking for robust auto insurance coverage. We chose Allstate because of its extensive coverage and discount offerings. Drivers with less-than-stellar records may find Allstate too expensive, but, for the average driver, it has almost everything you could want out of an auto insurance policy.

Allstate’s Full Coverage Options

The best full coverage auto insurance provides affordable and flexible optional coverage options. As one of the nation’s largest insurance companies, Allstate offers many coverages, discounts, and resources. When we say full coverage, we mean an auto insurance policy that includes the following required and nice-to-have coverages.

Legally-required auto insurance coverage in South Dakota:

• Bodily injury liability of at least $25,000 per person, $50,000 per accident
• Property damage liability of at least $25,000 per person
• Uninsured/underinsured motorist coverage of at least $25,000 per person, $50,000 per accident (we recommend as high as you can afford, up to $500,000)

Nice-to-have coverages in our definition of full coverage auto insurance:

• Medical payments coverage of as much as you can afford
• Collision insurance equal to your car’s actual market value (AMV)
• Comprehensive insurance equal to your car’s AMV

Allstate’s Add-On Coverages

These nice-to-have coverages offered by Allstate are not included in our definition of full coverage auto insurance, but are still worth a look as you shop for a policy:

• Rideshare insurance: Allstate calls this Ride for Hire, and it helps fill in coverage gaps when you use your vehicle for a ride-sharing service.
• Roadside assistance: Allstate’s roadside assistance covers tire changes and jump-starts.
• Personal umbrella policy: An umbrella policy covers liability above and beyond your auto policy’s limits.
• Rental reimbursement: Allstate covers renting a car or other transportation expenses while your vehicle is in the shop due to a collision or other insured loss.
• Gap insurance: Covers the difference between what you owe and your car’s ACV in the event of a total loss. 
• New Car Replacement: For cars two model years older or less, Allstate will replace your vehicle in the event of a total loss.

Allstate also offers auto insurance policies for classic car owners and travel insurance for drivers from the U.S. and Canada when they drive in Mexico.