Auto Insurance In South Dakota
Auto insurance is a basic requirement for road users in most jurisdictions across the world. It refers to a binding agreement between an insurance company and a road user. This agreement protects the road user against monetary loss in the event of automobile theft or accident. Usually, the insurance policy features an agreement to pay for the road user’s losses in exchange for payment of premiums.
Almost all the states in the US make it mandatory for drivers to insure their vehicles. The exceptions are New Hampshire and Virginia, where drivers can pay some form of fees for their uninsured vehicles. However, in every state of the country, there are laws guiding vehicle insurance. For instance, a license plate and proof of liability car insurance are required before you can lawfully drive around in South Dakota.
In addition, South Dakota is regarded as an “at fault” state. This means that the individual adjudged to have caused a car accident shoulders the responsibility for any resulting harm. As a consequence, the individual’s insurance company will bear the cost of the losses. There is a lot of information about car insurance in South Dakota. This is site is a one-stop for everything you need to know about car insurance in the Mount Rushmore State.
What are the insurance requirements in South Dakota?
As stated earlier, if you are going to be driving anywhere in South Dakota, your car will be needing insurance. Perhaps you are new to the state or planning to get your first car. It is instructive that you get yourself acquainted with the insurance requirements in this state. There are minimum requirements but residents are allowed to get additional overage if they feel the need for it. For all road users, the mandatory requirements are as follows:
| S/N | Category | Requirements |
|---|---|---|
| 1 | Bodily Damage or Death | $25,000 liability coverage per person and $50,000 per accident |
| 2 | Property Damage | $25,000 liability coverage per accident |
| 3 | Uninsured Motorist | $25,000 liability coverage per person and $50,000 per accident |
| 4 | Underinsured Motorist | $25,000 liability coverage per person and $50,000 per accident |
Liability insurance policies cover any legal costs and payouts an insured party is responsible for if they are found illegally liable. Most insurance companies offer liability coverage for property damage, medical bills, and other costs. It is possible sometimes that the amount of liability is far above the policy limit of your insurance. When such a scenario occurs, the insurer may have to cough out the excess liability cost. This underscores the importance of getting more coverage for your car. This affords you adequate protection in case a serious accident leads to significant vehicle damage and/or bodily injuries.
Furthermore, the basic liability coverage may not be applicable to your injuries or vehicle damage in this State. To have more protection, the policy offered to you could feature additional coverage such as collision coverage. Although this type of coverage is optional, it could come in handy in the event of a very serious accident. It is also noteworthy that your insurance policy in South Dakota, your liability coverage may extend to any family member. If you have given express permission to a non-family member to drive your car, liability coverage is applicable as well.
Average cost of car insurance in South Dakota
The average cost of auto insurance in South Dakota also stands among cheap US policies. Drivers have to pay an annual average of $2430 each year, or around $203 every month.
And just like in other US states, your premium rates depend to an extent on where you currently live.
Residents that own vehicles in Brookings, Flandreau, and Watertown usually have the cheapest comprehensive coverage rates.
The most expensive areas to own an auto policy are Oglala, Pine Ridge, and Manderson. Most residents in the expensive areas will have to pay up to 25% more than state averages each year.
But do not think your actual rates will be drawn up with residential information alone. Other factors play a role in how much you need to pay for auto insurance.
Look at the table below for more information based on percentage from average reductions based on location,
Top 25 South Dakota Locations with Lower Annual Auto Insurance Premium Rates
| Location | Percent Reduction from the state average | Average yearly cost |
|---|---|---|
| Lennox | Eleven point nine percent | $2,145 |
| Dell Rapids | Eleven point nine percent | $2,142 |
| Madison | Eleven point nine percent | $2,142 |
| Fairview | Eleven point nine percent | $2,142 |
| Valley Springs | Twelve point one percent | $2,138 |
| White | Twelve point one percent | $2,136 |
| Worthing | Twelve point one percent | $2,132 |
| Bruce | Twelve point two percent | $2,132 |
| Elkton | Twelve point three percent | $2,130 |
| Sinai | Thirteen percent | $2,111 |
| Hudson | Thirteen point one percent | $2,108 |
| Trent | Thirteen point two percent | $2,108 |
| Brandon | Thirteen point four percent | $2,104 |
| Alcester | Thirteen point four percent | $2,104 |
| Burbank | Thirteen point four percent | $2,102 |
| Beresford | Thirteen point six percent | $2,099 |
| Egan | Thirteen point seven percent | $2,097 |
| Vermillion | Thirteen point six percent | $2,096 |
| Tea | Thirteen point nine percent | $2,093 |
| Volga | Thirteen point nine percent | $2,092 |
| Elk Point | Thirteen point nine percent | $2,092 |
| Aurora | Fourteen percent | $2,088 |
| Brookings | Fourteen point six percent | $2,073 |
| Watertown | Fourteen point eight percent | $2,069 |
| Flandreau | Fourteen point eight percent | $2,068 |
Top 25 South Dakota Locations with Higher Annual Auto Insurance Premium Rates from State Average
| Location | Percent Increase to the state average | Average yearly cost |
|---|---|---|
| Pine Ridge | Twenty-six percent | $3,061 |
| Oglala | Twenty-five point five percent | $3,050 |
| Manderson | Twenty-five point four percent | $3,046 |
| Wounded Knee | Twenty-five point five percent | $3,043 |
| Batesland | Twenty-four point one percent | $3,013 |
| Denby | Twenty-four point one percent | $3,013 |
| Porcupine | Twenty-three point nine percent | $3,009 |
| Allen | Twenty-three point two percent | $2,994 |
| Kyle | Twenty-two point four percent | $2,972 |
| Saint Francis | Twenty-two point one percent | $2,966 |
| Mission | Twenty-one point three percent | $2,947 |
| Antelope | Twenty-one point two percent | $2,945 |
| Parmelee | Twenty-one percent | $2,940 |
| Tuthill | Twenty point eight percent | $2,935 |
| Martin | Twenty point seven percent | $2,933 |
| Wood | Twenty point two percent | $2,919 |
| Rosebud | Twenty point two percent | $2,920 |
| Buffalo Gap | Twenty point one percent | $2,916 |
| Lantry | Nineteen point nine percent | $2,913 |
| Little Eagle | Nineteen point eight percent | $2,911 |
| Okreek | Nineteen point five percent | $2,902 |
| Bullhead | Nineteen point four percent | $2,899 |
| White River | Nineteen point four percent | $2,901 |
| Whitehorse | Nineteen point three percent | $2,898 |
| Dupree | Nineteen point two percent | $2,895 |
Many factors account for the average cost of auto insurance in South Dakota. These include age, gender, marital status, credit history, and driving records. What this means is that there are varying rates depending on each of the factors.
Average cost of car insurance by Age Group
In South Dakota, older drivers are likely to pay higher premiums than the younger ones. This is based on the premise that drivers with many years of experience are less likely to make claims as younger drivers. So, if you are under 40 years old, you are likely going to be billed far more than you expect. The exact quotes will always depend on the insurance provider. However, the table below provides insight into the average cost of insurance by age.
| AGE | AVERAGE PREMIUM PER MONTH |
|---|---|
| 18 | $4,843.96 |
| 19 | $2,805.08 |
| 20s | $1,717.73 |
| 30s | $1,247.53 |
Average cost of car insurance by Gender
Gender also plays a role in the calculation of premiums in South Dakota just as age. The gap between the two genders has been bridged substantially over time in the US. However, there are still instances where certain behavioral tendencies of a particular gender are used as a yardstick for certain decisions. Auto insurance is a good example to that effect.
In South Dakota for instance, males have to pay more premium than their female counterparts. This is because of the assumption that younger males have more likelihood of getting involved in accidents than females. The rates are significantly lower for older men. The table below shows the average rates of five top companies according to age and gender classifications.
| 25-year-old male | 25-year-old female | 35-year-old male | 35-year-old female | 60-year-old male | 60-year-old female | |
|---|---|---|---|---|---|---|
| American Family | $1,389 | $1,321 | $1,130 | $1,397 | $1,046 | $1,023 |
| Progressive | $1,861 | $1,774 | $1,358 | $1,334 | $1,135 | $1,097 |
| All State | $1,876 | $1,724 | $1,564 | $1,527 | $1,444 | $1,354 |
| Nationwide | $1,442 | $1,295 | $1,088 | $1,031 | $1,077 | $929 |
Average cost of car insurance by Marital Status
Car insurance in South Dakota is generally more expensive for married couples than policies for singles. One of the reasons is the likelihood of more cars to be covered in insurance for married couples. In other words, the policy for married couples features more than one person.
| Marital Status | Average Monthly Cost |
|---|---|
| Married | $136.30 |
| Divorced | $65.74 |
| Single | $101.30 |
Average cost of car insurance by Credit History
Having a good credit history in the US is hugely important for many reasons. Apart from being able to access amazing loan offers, you also stand the chance of getting a significant insurance discount. In South Dakota for example, the average cost of car insurance for a driver with an excellent credit score is $85.21. Contrastively, anyone with a poor credit history may have to cough out $114.21 on average.
Average cost of car insurance for Bad/Good Drivers
In the same manner as a credit score, driving history also plays a crucial history is important for car insurance. Most insurance companies perceive drivers with an eventful driving history as high risk. As a result, they will request such drivers to pay more premiums than someone who drives more safely. What this means is that drivers who desire fair car insurance deals should avoid speeding tickets, DUI, and accidents as much as possible. Below is how the cost of insurance for high risk drivers compares to safe drivers.
| Driving history | Average Monthly Cost |
|---|---|
| High Risk Drivers | $102.78 |
| Low Risk Drivers | $108.01 |
Best car insurance companies in South Dakota
Many car insurance companies have their presence in South Dakota. Those that can be considered as top five are USAA, American Family, Progressive, and AllState. If you are new to South Dakota, you could compare these insurance companies whenever you need auto insurance.
USAA: This provider is reputed for its high customer satisfaction ratings. It is however streamlined to render services to veterans, serving military officers, and members of their families. Therefore, it is not designed for the general public. However, USAA is one of the most reliable one-stop shops for all types of insurance in the US.
American Family: The beauty of American Family’s auto insurance is that it gets few complaints. This seems surprising for a company its size and customer base. Nevertheless, the company is not available in all 50 states in the US.
Progressive: It is safe to say that Progressive is best known for its auto insurance. In fact, it is the third-largest personal auto insurance provider in the country. If are in South Dakota and need car insurance, this company should be considered.
AllState: Here’s an equally good choice for anyone in need of auto insurance. The main demerit f this company is that the rates for its policies are on the high side.
South Dakota Auto Insurance Laws
Just like in most other states in the US, the law mandates that car drivers have car insurance. If you are found short of the minimum requirement in South Dakota for instance, you could get penalized. Typically, you could be fine or get about 30 days of jail term. It is also possible that your license is suspended for up to 30 days in a year.
The law also requires that you produce an SR-22 insurance certificate which will show your proof of financial responsibility. Failure to produce it could lead to the suspension of your driving privileges.
