South Dakota car insurance laws
South Dakota car insurance law requires drivers to carry at least 25/50/25 in liability coverage. These minimum limits help pay for injuries and property damage when an insured driver causes an accident. However, the required limits may not be enough in a serious crash, leaving the driver responsible for the remaining expenses.
These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.
However, coverage limits are very low and will not cover expenses from a serious accident. To be better protected, South Dakota drivers should consider increasing liability limits and adding coverage, such as collision and comprehensive.
South Dakota car insurance requirements
South Dakota drivers must carry liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. and UIMBI and UMBI. The minimum liability limit is 25/50/25. These minimum limits help pay for injuries and property damage after an accident, but if costs exceed your policy limits, you will be responsible for the remaining amount.
South Dakota requires the following coverage:
Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.
South Dakota liability minimums are 25/50/25.
Uninsured/Underinsured motorist coverage (UM/UIM). Uninsured and underinsured motorist coverageAn auto insurance coverage that pays for injuries or damage if you're in an accident with a driver who has no insurance or not enough insurance. helps pay for your medical costs and property damage if the at-fault driver has little or no car insurance. Your insurer would cover expenses up to your limits in addition to any payments from the other insurer.
South Dakota requires uninsured motorist coverage of 25/50.
Minimum coverage in South Dakota costs an average of $382. Farmers Mutual of Nebraska offers the lowest average rate at $148, but your premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. will depend on your driving record, age, location, and other factors.
The table below shows the average rates of the top insurers for minimum coverage in South Dakota.
| Company | Average annual premium | Average monthly premium |
|---|---|---|
| Farmers Mutual of Nebraska | $148 | $12 |
| Progressive | $219 | $18 |
| GEICO | $251 | $21 |
| State Farm | $343 | $29 |
| North Star Mutual | $345 | $29 |
| Auto-Owners | $363 | $30 |
| Iowa Farm Bureau | $466 | $39 |
| Allstate | $554 | $46 |
| Nationwide | $601 | $50 |
| Farmers | $690 | $57 |
| USAA | $210 | $18 |
South Dakota car insurance cost for minimum coverage limits
The average cost of minimum coverage car insurance in South Dakota is $382. Farmers Mutual of Nebraska offers the cheapest average policy at $148 annually. However, your actual rate will depend on the company you choose and personal factors such as your age, address, and driving record.
| State minimum coverage limit | 25/50/25 |
| Average annual premium | $382 |
| Average monthly premium | $32 |
Are the minimum coverage requirements changing in 2026 in South Dakota?
The minimum car insurance requirements in South Dakota will remain the same in 2026. Drivers who already meet the state's mandatory coverage limits do not need to change their policies. If the law changes in the future, insurers will notify customers about the new requirements and any effect on premiums.
Why do limits change?
"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated coverage values and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."
What does minimum car insurance cover in South Dakota?
Minimum car insurance in South Dakota pays for specific accident expenses up to the limits required by law. Liability insurance covers injuries and property damage you cause to other people. These limits pay for injuries, property damage, and other losses covered under South Dakota's minimum insurance requirements.
South Dakota requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.
South Dakota drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.
South Dakota is a no-fault state, meaning your insurer pays for your injuries and damages regardless of who caused the accident. The law requires you to carry personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. (PIP) to pay medical costs, such as doctor visits and prescriptions.
Uninsured and underinsured motorist coverage is also required. Uninsured motorist coverage helps pay for coverage when the at-fault driver doesn't have car insurance, and underinsured coverage assists when the at-fault driver doesn't have enough car insurance to cover injury and property damage costs. Without these coverages, you would have to pay for medical and repair costs that the other driver's insurance didn't cover. You may be able to opt out of this coverage.
PEOPLE ASK:
Is South Dakota minimum car insurance enough?
It may not be. Even a moderately serious accident could exceed the state minimum limits of 25/50/25, and minimum coverage may not cover all accident costs. Furthermore, state minimums do not cover your vehicle; you need to add comprehensive and collision coverage.
How much car insurance is enough in South Dakota?
The amount of car insurance you need in South Dakota depends on your assets, income, savings, and vehicle. Higher liability limits can protect you from lawsuits and major out-of-pocket expenses. Drivers with financed or leased vehicles will also need collision and comprehensive coverage.
Drivers with substantial savings, property, or other assets should avoid choosing limits that are too low. If you cause an accident that exceeds your policy limits, the injured party may pursue your income or assets for the remaining costs.
Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease, you will be required to carry this coverage by your lender.
Consider your financial situation when determining how much car insurance you need.
South Dakota penalties for driving without car insurance
Driving without required car insurance in South Dakota can result in fines, a suspended driver's license, vehicle registration penalties and higher future insurance rates. Penalties become more severe after repeated violations. You will also have to pay accident-related expenses out of pocket if you cause a crash while uninsured.
Failing to carry South Dakota car insurance has penalties, including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.
| Fines | $100 |
| Other penalties | License suspension |
| Jail time | Possible |
South Dakota minimum coverage cost by age group
Younger drivers tend to pay the most, and rates decline with age and experience. Farmers Mutual of Nebraska is the cheapest option for teens, while Farmers Mutual of Nebraska has the lowest average adult rate
The table below breaks down the cost of car insurance for various age groups. Farmers Mutual of Nebraska has the best rates for teens, with minimum coverage averaging $401. Farmers Mutual of Nebraska offers the cheapest coverage for adults at $141.
Additionally, females and males pay different rates. The average rate for a 40-year-old female is $389, and the average rate for a 40-year-old male is $375, a difference of $14.
South Dakota minimum coverage cost by city
Minimum coverage is cheapest in Pierre, where drivers pay an average of $371. Sioux Falls has the highest average minimum coverage rate in South Dakota at $507. Differences in traffic, accident claims, theft, and local repair costs can cause premiums to vary from one city to another.
The table below shows average minimum coverage rates for cities in South Dakota.
| City | Average annual premium | Average monthly premium |
|---|---|---|
| Aberdeen | $382 | $32 |
| Brookings | $381 | $32 |
| Huron | $390 | $33 |
| Mitchell | $372 | $31 |
| Pierre | $371 | $31 |
| Rapid City | $458 | $38 |
| Sioux Falls | $507 | $42 |
| Spearfish | $405 | $34 |
| Watertown | $372 | $31 |
| Yankton | $378 | $31 |
Optional car insurance coverage in South Dakota
The minimum coverage required in South Dakota does not protect your vehicle against most types of damage. Optional insurance, such as collision and comprehensive, will pay to repair or replace your car. Rental reimbursement, roadside assistance, and gap coverage can also help with costs that are not included in a minimum liability policy.
Drivers may choose optional coverages such as:
- Collision coverage. Collision coverage pays for damage to your vehicle if you cause an accident.
- Comprehensive coverage. This coverage pays for damage to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
- Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
- Roadside assistance coverage. If you run out of gas, need a tire changed, or have a dead battery, roadside assistance will send someone to help.
- Gap coverage. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.
Why do limits change?
Minimum car insurance limits change when state lawmakers determine that existing coverage amounts are no longer sufficient to meet current accident costs. As vehicle prices, repair bills and medical expenses rise, lower liability limits may leave both accident victims and at-fault drivers with large unpaid balances.
Methodology
Insurance.com partners with Quadrant Information Services to field average car insurance rates across all 50 states and Washington, D.C. National and state average rates are based on state minimum coverage and on the following parameters:
- 40-year-old driver
- Honda Accord LX
- Good credit
- A clean driving record
- 12-mile commute, 10,000 annual mileage
State laws were gathered from state DMV and insurance department websites.
Learn more about our data and methodology.
South Dakota car insurance laws and requirements: FAQs
Is it mandatory to have car insurance in South Dakota?
Yes. Drivers in South Dakota must maintain the minimum insurance required under state law. Mandatory coverage includes 25/50/25, UIMBI and UMBI, 25/50. Driving without the required policy can result in fines, license or registration penalties, and higher premiums when you purchase insurance again.
Will my bare minimum car insurance cover me in another state?
Yes, your car insurance will cover an eligible claim when you drive in another state. If the state where the accident occurs requires higher liability limits, your policy will automatically adjust to meet those limits for the claim. However, this does not add collision or comprehensive coverage to a minimum policy.
What happens if I drive without car insurance in South Dakota?
Driving without car insurance in South Dakota can lead to fines, license suspension, vehicle impoundment, and increased insurance premiums. Repeat offenses may carry more serious consequences, including jail time. You will also be personally responsible for medical bills, repairs, and other damages if you cause an accident while uninsured.
Compare state minimum requirements with other states
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