Car Insurance In South Dakota 2026: Laws, Costs, Requirements & Companies

Having thoroughly reviewed the South Dakota car insurance market I’ve seen the impact that common accident causes and crime in the state can have on drivers. This guide is designed to tell you everything you need to know about the laws for insurance coverage in South Dakota, what happens if you don’t carry the right coverage, and how you can reduce premiums.

Does South Dakota Require Car Insurance?

Yes, South Dakota requires that all motor vehicle operators not only maintain minimum liability coverage but also carry proof of that coverage at all times. Failure to carry proper insurance or be able to present proof of that insurance can lead to criminal charges and fines.

South Dakota requires the following:

• Bodily Injury Liability: $25,000 per person and $50,000 per accident.
• Property Damage Liability: $25,000 per accident.
• Uninsured/Underinsured Motorist (UM/UIM) Bodily Injury: $25,000 per person and $50,000 per accident.

How Much Insurance Should You Get In South Dakota?

While state minimums are more robust than many other states, there are still additional forms of coverage that you might consider, given the severe weather, high wildlife activity, and unique road hazards across South Dakota.

Comprehensive Coverage

This helps protect against non-collision damage, which can be a serious risk for South Dakota drivers, especially things like flash floods, hail storms, and wildlife collisions.

Collision Coverage

Collision coverage can pay for repairs to your vehicle if you are involved in things like single-vehicle accidents, sliding off an icy road into a ditch, or hitting a telephone pole.

Roadside Assistance

With a low population density and rural isolation, roadside assistance coverage can help you if you break down in a remote area, offering fuel delivery, battery jumps, and professional towing services.

Higher UM/UIM Limits

While there are state mandates for UM/UIM, around 8.5% of all drivers are uninsured, so if you get in an accident with someone who is uninsured or carries the state minimum, which proves insufficient for the damages, this can help ensure your medical bills are fully covered.

Loan/Lease Gap Coverage

The high-speed roadways and severe weather increase the likelihood of a total loss. So if you have a lease or a loan on your vehicle, this type of gap coverage can help pay the difference between the current market value and what you still owe if your vehicle is totaled in an accident.

Medical Payments (MedPay)

In South Dakota, this optional coverage can be applied to medical and funeral expenses for you and any of your passengers, no matter who was at fault. It can be a good way to cover any immediate deductibles for your health insurance after an accident.

How Much Is Car Insurance In South Dakota?

The average monthly cost is around $45 for minimum coverage but around $185 for full coverage. South Dakota has some of the most affordable car insurance rates across the country, but the average premiums will vary based on driver categories like the following:

• Low-income car insurance: There are no government-sponsored programs to help with low-income residents, but drivers who are on a budget can find affordable state minimum policies for around $20 per month from some providers.
• Non-owner car insurance: Drivers who don’t own a car but still want coverage for rented or borrowed cars can expect premiums around $15 per month in South Dakota.
• Temporary car insurance: A one-month policy can cost around $81 in South Dakota.
• Senior car insurance: Seniors can pay around $175 per year for full coverage, but this price goes up with age and risk.
• Teen car insurance: Similarly, teens have the highest risk profile and the highest costs, with minimum liability averaging $85 per month but up to $600 per month for full coverage.
• SR-22: Drivers who are considered at risk with an SR-22 can expect monthly premiums around $200 for full coverage.
• College Students: College students/young drivers pay around $150 per month for full coverage.
• Bad Credit: Drivers with a poor credit score in South Dakota pay nearly double the state average for minimum and full coverage policies.
• With a speeding ticket: A speeding ticket can increase premiums by an average of $15 per month.

These figures are general estimates and can vary depending on the insurer and your personal driving profile.

Which Car Insurance Companies Operate In South Dakota?

The following providers offer a range of coverage options and discounts tailored to South Dakota drivers:

• State Farm
• Progressive
• Allstate
• GEICO
• Travelers
• USAA
• Nationwide
• Farmers Insurance
• Liberty Mutual
• American Family Insurance
• Farmers Mutual of Nebraska (FMNE)
• Auto-Owners Insurance
• North Star Mutual
• Nodak Insurance Company
• Farm Bureau Financial Services
• Northwest G.F. Mutual Insurance Company
• Columbia Insurance
• Grinnell Mutual
• Kemper
• The General
• Dairyland
• Safeco

Note: You can access an official directory of every license insurer throughout South Dakota from the South Dakota Division of Insurance website.

If you aren’t sure whether a regional or national carrier will provide the coverage you need or the best rates, you can compare quotes and coverage details through Insuranceopedia to find the best fit for your needs.

How To Get Lower Insurance Premiums In South Dakota

Drivers in the Mount Rushmore state might benefit from a low population density, but there are many other ways to keep premiums low.

Shop For “Homeowners” Bundling In Rural Areas

Many local insurance providers, like the Farm Bureau Financial Services in South Dakota, will offer deep discounts if you bundle things like farm or ranch insurance with your auto insurance.

Check Roadside Coverage

As South Dakota has a lot of areas with limited population density, being able to access roadside assistance is important. However, there are many things like travel-based credit cards, vehicle warranties, and club-based memberships that offer roadside assistance. If you already have it, you can remove that add-on from an existing policy and save an average of $60 per year.

Pay Your Premium In Full

Many insurance providers in South Dakota will give up to 10% off your premiums if you pay biannually or annually rather than monthly.

“Full Tort” Flexibility

Because South Dakota has an at-fault system, you can typically save money on your premiums by choosing a higher deductible for your collision coverage, but then rely on the liability coverage of another driver if you are not at fault.

Leverage Deer-Related Comprehensive Savings

South Dakota has a high number of deer vehicle collisions, so ask about being able to separate your deductible for comprehensive coverage, which will apply to any animal collisions while also raising your collision deductible. In some cases, this can lower your overall bill.

Defensive Driving For Seniors

Any senior driver over 55 who completes a state-approved accident prevention course will receive a mandatory discount on liability, no-fault, and collision coverage for 3 years.

Opt For Pay-Per-Mile Insurance

South Dakota drivers who have short commutes or don’t drive very often might have lower premiums if they look at a pay-per-mile plan where the charges are based on the miles driven rather than a base fee. This does mean that the costs could fluctuate from month to month, but it’s also a cost-effective alternative for people who are retired or work remotely.

Install Anti-Theft Devices

Many South Dakota providers offer discounts for drivers who install anti-theft devices. If you install anti-theft devices like alarm systems or GPS trackers, it can reduce your premiums.

Proof Of Insurance In South Dakota

South Dakota requires all drivers to maintain financial responsibility, which means proof of coverage in the form of a physical ID or an electronic copy, declaration page, temporary binder, or full copy of your insurance policy.

If you don’t have a policy or proof of your policy, it’s a class 2 misdemeanor. Most of the time, this gets treated as an administrative violation, and you have 15 days to show that you actually have proof, but if you didn’t have insurance at all, then it’s a class misdemeanor, a conviction of which can stay on your criminal record.

Drivers will also have their license and registration suspended for anywhere between 30 days and one year, and a sentence of up to 30 days in jail. In addition to fines, reinstatement can include an SR22 for 3 years, and all drivers have to retake their driver’s exam.

South Dakota State Driving Laws

South Dakota uses a range of state driving laws to protect everyone on the road. With a fault-based system and a unique comparative negligence rule, below are some of the key regulations that every driver in South Dakota should know:

Fault State

South Dakota is a fault state, which means that whichever driver is found to be at fault for causing an accident has to pay for the resulting property damage and injuries. The injured party will file a claim with the at-fault driver’s insurance company.

However, plaintiffs can only recover damages if their negligence is considered slight in comparison to the gross negligence of the other driver based on the “slight/gross” comparative negligence system used in South Dakota.

Drivers Without Insurance

Driving without insurance is a Class 2 misdemeanor, which can result in an immediate suspension of your driver’s license, license plates, and registration, an SR-22 certificate requirement, jail time, and fines.

Uninsured Motorist (UM) Coverage

South Dakota mandates that all drivers carry uninsured motorist and underinsured motorist coverage that conforms to the minimum liability limits of the state.

SR-22s

High-risk drivers may be required to submit an SR22 or an FR-9 in South Dakota for offenses like driving without insurance.

Self-Insurance

Large fleets for businesses can be self-insured if businesses and other entities can provide proof of their financial ability to cover damages equal to the minimum insurance requirements set by the state of South Dakota.

Seat Belt Laws

South Dakota requires all occupants in all seats to have a seatbelt, and failure to wear a seatbelt is a primary offense, which means law enforcement can pull you over just for not wearing a seatbelt.

Distracted Driving Laws

Using a handheld mobile device to type, read, or view anything while driving is a Class 2 misdemeanor, and this includes using your phone while at a stoplight or a stop sign.

Teen Driving Laws

South Dakota relies on a graduated driver licensing program where permits are available at age 14, after which teenagers can graduate to a restricted permit and eventually get an operator’s license at age 16 when they meet all other requirements.

DUI Laws

South Dakota has strict regulations against driving under the Influence with a 0.02% limit for drivers under the age of 21 and a 0.08% limit for most other drivers. All drivers are considered to have legally consented to Chemical Testing if they get arrested for a DUI, and refusal can lead to additional penalties.

Statute Of Limitations For Claims

The statute of limitations for filing a lawsuit is 3 years from the date of the accident for personal injury claims and 6 years from the date of the accident for property damage.

When To Report An Accident

Accidents must be reported immediately to the nearest law enforcement agency if they result in injury, death, or property damage of more than $1,000.

When Is A Car Declared A Total Loss?

A car is declared a total loss when the cost of repair and salvage meets or exceeds the actual cash value of the vehicle in South Dakota.

Cancellation/Non-Renewal Notification Laws

All insurance providers must give you at least 10 days written notice before canceling your policy due to non-payment, but for all other reasons, they must give you 30 days notice. 30 days’ notice is also required if your policy is not going to be renewed.

Defensive Driving

Drivers in South Dakota can complete a defensive driving course voluntarily to qualify for potential insurance discounts or as part of the sentence after traffic violations.

South Dakota Car Insurance Contact Information

In South Dakota, vehicle insurance, registration, and driver compliance are managed by three separate state bodies. Knowing which one to contact for which issue/service can save drivers a lot of time.

1. South Dakota Division of Insurance

The first is the Department of Labor and Regulation, which can be contacted for unresolved issues with your insurance provider or to report insurance fraud.

Contact Information:

• Phone: (605) 773-3563
• Consumer Complaints Email: sdcomplaints@state.sd.us
• General Email: sdinsurance@state.sd.us
• Physical Address: 124 South Euclid Avenue, 2nd Floor, Pierre, SD 57501
• Website: sd.gov/insurance

2. South Dakota Motor Vehicle Division (MVD)

The second is the MVD, which manages vehicle records and offers self-service kiosks to use for basic registration and renewal. You can also contact this department if you need to replace your registration.

Contact Information:

• Main Phone: (605) 773-3541
• Email: motorv@state.sd.us
• Physical Address: 445 East Capitol Avenue, Pierre, SD 57501
• Website: sd.gov/motor-vehicle

3. County Treasurer Offices

Finally, there are county-level treasurers that typically handle local registration, renewals, and taxes. So if you need to get new plates, this is where you go. This is also where you go to pay for your annual registration or register a new vehicle.

Contact Information: Use the County Treasurer Location Finder to find your specific office.

• Minnehaha County: (605) 367-4211
• Pennington County: (605) 394-2163

4. South Dakota Driver Licensing

If you need to get a copy of your driver record, or your license was suspended for not having insurance, the Department of Public Safety (DPS) is where you go for reinstatement.

Contact Information:

• Phone: (605) 773-6883
• Website: dps.sd.gov/driver-licensing

Common South Dakota Car-Related Crime And Fatalities

South Dakota drivers do not regularly wear seat belts, and there has been an increase in the number of fatal car accidents relating to alcohol impairment. Understanding crime rates and fatality causes can help drivers get the right insurance and protection.

Traffic Fatality Data For South Dakota

There were 140 car accident fatalities recorded in 2023, 146 in 2024, and around 100 in 2025. Reports indicate that the number of traffic accident fatalities in the last year has dropped by 20%, but the risks remain; around 58% of all car accident fatalities involve drivers not wearing seat belts, and the number of alcohol related fatalities increased by 36% in 2024.

In terms of driver demographics, those between the ages of 21 and 34 are the least likely to wear seat belts and the most likely to be involved in fatal car accidents.

Vehicle Theft Trends

Many areas of the state have tried to contend with previously high rates of car-related crime through things like “Lock Your Car” awareness campaigns. Still, South Dakota has historically struggled with high levels of property crime, and over the last 5 years, motor vehicle thefts have increased by 53%.

Most Common Causes Of Accidents And Fatalities In South Dakota

South Dakota is 6th across the nation for car accidents involving animals, which means the drivers have a one in 73 chance of hitting an animal, mainly a deer. In fact, 2% of all fatal car accidents are attributed to wildlife collisions.

As interstate speed limits have reached 80 mph, speeding remains one of the leading factors in fatal car accidents, followed by distracted driving, bad weather conditions, and failure to obey signs. In fact, South Dakota is the 5th worst state for fatal car accidents attributed to drivers failing to heed traffic signs, and approximately 10% of all fatal car accidents are due to bad winter weather.