Known for its breathtaking landscape, Mount Rushmore State is one of the best places in the country for scenic drives. But regardless of whether your car is spending time on the road or in the garage, you don’t have to worry about costly auto insurance payments. South Dakota car insurance rates are slightly lower than the national average thanks to low population density, large rural areas, and a low percentage of uninsured drivers.
So do these lower prices mean that you’ll get less coverage, substandard customer care, and misplaced claims? Absolutely not. Insurance companies provide competitive rates to a variety of drivers, offering everything from safe-driving bonuses to discounts for veterans. We’ve conducted a thorough analysis of the offers in South Dakota, and our review will help you find the best option for your individual needs.
The Best Car Insurance in South Dakota
- State Farm: Best overall
- Progressive: Runner-up
- Farmers Mutual of Nebraska: Most affordable option
- Farmers Insurance: Best for optional coverage and discounts
- USAA: Best for military
Best overall: State Farm
We’ve crowned this insurer as the best option because it excels in all categories we’ve reviewed, including price, discounts, and user satisfaction. Moreover, it has the financial muscle that ensures reliable claims-paying abilities – an important characteristic that earned the company the highest possible rating (A++ ) from A.M. Best.
Their customers echo that sentiment. State Farm is the best-ranked provider of auto insurance in South Dakota when it comes to customer satisfaction, according to J.D. Power’s 2021 regional study.
A lot of that satisfaction has to do with the affordability of the service. The company isn’t the cheapest option on the market, but it’s still a very affordable solution, especially when considering service quality.
You can also save money through a long list of insurance discounts. These include safe driving discounts, good student rewards, and the option to save up to 17% by bundling home and auto insurance. State Farm has an equally impressive selection of coverage options, offering SD auto insurance for teen drivers, rental cars, and even sports cars.
Of course, like a lot of the industry’s heavyweights, State Farm doesn’t have a one-size-fits-all approach. You’ll have to get in touch with a sales agent for a free quote. Some of the company’s best rates are reserved for good drivers with clean records. But rates for drivers with speeding tickets, an accident, or a DUI on their record are also some of the lowest on the market.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose State Farm for its affordability, range of coverage options, and above-average customer support.
Look elsewhere if you have bad credit.
4.75
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Runner-Up: Progressive
Holding nearly 15% of the car insurance market, Progressive is the second-largest provider of car insurance in South Dakota. The company offers every benefit you’d expect from a reliable insurer. Aside from extensive coverage options, affordable prices, and many discounts, it also offers some interesting tools that other insurers lack.
One of them is the signature Name Your Price Tool. The unique feature enables you to state your budget, and the agents present you with the best coverage options. Furthermore, you can reduce the price if you’re eligible for one of the many discounts, such as having two or more policies with Progressive or being a safe driver.
But buying cheap auto insurance in South Dakota from Progressive doesn’t mean that you’ll be missing out on coverage options. For example, Progressive offers pet injury coverage, custom parts and equipment, roadside assistance, and gap coverage.
When it comes to financial strength, Progressive is rated as A+ (Superior), showing that the company is capable of paying any claim that comes its way.
And the clients are relatively happy with how their claims are handled —Progressive ranks a little bit above average when it comes to user satisfaction, according to the J.D Power 2021 regional study.While this is undoubtedly one of the top-rated auto insurance companies in South Dakota, no one is perfect. Progressive isn’t an ideal option for young drivers. For this particular category, the company’s prices are above average.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose Progressive for a comprehensive insurance package.
Look elsewhere if you’re a young driver.
4.5
Most Affordable Option: Farmers Mutual of Nebraska
In addition to its South Dakota car insurance offering, this company covers only two other states, North Dakota and Nebraska. However, being small doesn’t translate into insufficient financial resources. The company holds an A (Excellent) rating from A.M. Best for its ability to cover the claims of its clientele.
A lot of its coverage options are tailored to farm and ranch owners. Customers can insure farm vehicles, snowmobiles, trailers, etc. But this doesn’t mean that it’s lacking in the car insurance department. The company has an excellent client-retention rate — almost 91% of them renew their policies, and 89% would recommend this cheap auto insurance in SD to their friends.
Customer satisfaction like this is hard to achieve, and the company obviously works hard to keep clients happy. They rely on maintaining human contact to add a personal touch to their policies. A network of more than 1,500 independent agents is there to help the clients out.
However, this business model has its downsides. Some of those agents end up going out of business, and people often sign up with another insurer simply because it’s more convenient. As a matter of fact, most people who say they opted for another company did so because their local Farmers Mutual agent left or went out of business.
When it comes to costs, the company’s rates are lower than the state average for those with a clean South Dakota driving record. This is also an ideal option for those with poor credit and those who get caught driving without insurance. The rates are slightly higher than what some of the competitors offer for drivers with speeding tickets and accidents on their record.
The costs can be reduced further with the help of discounts. Unfortunately, there aren’t many, and they mostly revolve around safe driving and insurance policy bundling. There are also many different coverage options, including protection when you’re using a rental or even a friend’s car.
Overall, this is an excellent company. If you get past the somewhat dated website, you’ll get much more than you expect.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose Farmers Mutual of Nebraska if you want good coverage and excellent customer care.
Look elsewhere if you have an accident on your record.
4.5
Best for optional coverages and discounts: Farmers Insurance
If you’re into discounts and special perks, Farmers is the best choice for car insurance in South Dakota. Aside from offering industry-standard discounts, the company also has occupational price reductions. Namely, teachers, doctors, police officers, military personnel, and firefighters get significant price reductions.
Another way to save money is by installing the Signal app, which monitors your driving habits, and if you drive carefully enough, you can get up to $100 in rewards every month. Unfortunately, the company’s price policy makes these discounts essential, as its car insurance premiums in South Dakota are above average. Another thing you’ll have to contend with is the below-average rating for the company’s customer support team from the J.D. Power 2021 regional study.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose Farmers Insurance for discounts and additional benefits.
Look elsewhere if you want low prices and top-notch customer support.
4
Best for Military: USAA
USAA car insurance is one of the best you can buy in South Dakota. It’s unparalleled when it comes to customer satisfaction. For years now, it’s held the number one place in J.D. powers customer satisfaction studies.
Perhaps unsurprisingly, one of the main reasons for this is the price — USAA is almost always the most affordable option on the market. That’s true whether you have a speeding ticket, accident, or a DUI on your record. Even those with poor credit can get some of the lowest rates.
Of course, low prices aren’t the only reason, as the company offers extensive coverage options, including collision, theft, glass, and weather-related damage. However, this insurance provider tailors exclusively to active and retired military personnel and their eligible family members.
Customer Service
Discounts & Optional Coverages
Financial Strength
Prices
Choose USAA Insurance if you want low prices and comprehensive coverage.
Look elsewhere if you aren’t a current or former military member.
5
Cheapest Car Insurance in South Dakota (By City)
In order to find the best and most affordable insurer in each city, we requested quotes from several companies. Our quote profile was a 30-year-old single male with good credit and a clean driving record. The vehicle in question is a four-door sedan, a 2012 Honda Accord EX. After reviewing the quotes and other factors like optional coverage, customer satisfaction ratings, South Dakota car insurance rates, and discounts, we made a list of our favorites for each city:
Sioux Falls
With nearly 200,000 residents, Sioux Falls accounts for about a quarter of South Dakota’s entire population, and the city itself is the most populous in the state. It’s also the healthiest city in the US, according to Best Life magazine. This title probably has something to do with the fact that the city is an important medical center and that medical facilities are some of the biggest employers there.
Car insurance in Sioux Falls, SD is relatively affordable. The best option is Farmers Mutual of Nebraska, followed by State Farm and GEICO. Farmers Insurance is also a good option because many residents work in health care, and the company has plenty of occupational discounts for those in this field.
Rapid City
Rapid City is the second-largest city in South Dakota. It’s a very popular tourist destination because of the many national monuments and parks. These include Mount Rushmore, the Crazy Horse Memorial, and Custer State Park.
Although the city isn’t very large, it’s often packed with tourists, causing many traffic jams. Luckily, this doesn’t affect rates for car insurance in Rapid City, SD. The costs are some of the lowest in the state. State Farm offers the most affordable insurance, but GEICO and Farmers Mutual of Nebraska are also cost-effective solutions.
Aberdeen
In the 140 years since its founding, this city was initially referred to as “The Town in the Frog Pond” because of its periodic flooding. In the years that followed, it became better known as the state’s railroad hub. The city is also known as the birthplace of the Super 8 motel franchise.
The flooding problem was solved a century ago, the railroad lost its significance, and the motel franchise HQ was moved to another city. One thing that hasn’t changed over the years is that Aberdeen is a pretty safe place to drive. Insurers love safe surroundings, and as such, auto insurance in Aberdeen, SD is highly affordable. People looking for the cheapest option should look into Farmers Mutual of Nebraska, State Farm, and Progressive. Since State Farm has the best customer satisfaction ratings, it’s the best choice.
Brookings
Brookings is a small city with a population of just over 20,000, but it’s an important educational and business center. It’s home to South Dakota State University, which has more than 11,000 students, who can cause quite a commotion in the city.
Luckily, that doesn’t affect insurance costs, and auto insurance in Brookings, SD is one of the cheapest in the state. The most affordable insurers are Farmers Mutual of Nebraska, Progressive, and State Farm. However, since the government is one of the largest employers in the city, companies that offer occupational discounts are also worth looking into. The best options from this category are GEICO and Farmers Insurance.
Watertown
Watertown is the fifth-largest city in SD and one of the most important cultural hubs. It’s home to the Redlin Art Center, dedicated to its native painter Terry Redlin, frequently called “America’s most popular artist.” This also makes it a very popular tourist spot.
Luckily, art-lovers are not notorious for their high-speed chases and car escapades, and SD driving statistics show that Watertown’s roads are safe. Typically, this would be an ideal environment for low insurance prices. But Watertown has very expensive real estate and high-income residents, which drive up costs.
As a result, they are well above the state average. If you’re looking to save money, the best options are companies that offer different discounts. Aside from State Farm, Watertown, SD residents should also look into GEICO, Progressive, and Farmers Mutual of Nebraska.
Mitchell
Mitchell is home to the world’s only Corn Palace. The name was chosen because the murals and shapes covering the structure are actually made from corn and other grains, and the pattern is changed every year. Of course, this makes The Corn Palace a trendy tourist destination, which can cause quite a bit of traffic in the city.
But just like in other cities in South Dakota, car insurance prices are low in Mitchell. The most affordable insurers are Farmers Mutual of Nebraska, State Farm, and Progressive. Since the government facilities are some of the larger employers, GEICO might be an interesting solution as it offers occupational discounts for this customer category.
Pierre
Pierre is the capital of South Dakota and one of the most interesting state capitals in the US. With just over 14,000 residents, it’s among the state’s smaller cities. It lost a lot of its relevance when roads became major transportation routes instead of railroads — Pierre is the only state capital in the US that doesn’t have access to an expressway.
Even though it’s not that well connected, the road infrastructure is decent, and the peaceful city is safe for drivers. With conditions like that, auto insurance in Pierre, SD, isn’t expensive. It’s actually one of the most affordable in the state. The best options are Farmers Mutual of Nebraska, State Farm, and Progressive. As is the case in many state capitals, much of the workforce is employed by the government, so GEICO might be a good option due to its discounts for government employees.
Car Insurance Laws in South Dakota
South Dakota Automobile Insurance Plan (SDAIP)
Some people are deemed risky drivers, which makes it difficult for them to buy insurance on the regular market. The Automobile Insurance Plan is there to help these drivers. Its role is to act as a mediator and connect drivers and insurance companies. Every insurer must take on a percentage of risky drivers that’s analogous to its market share.
Auto Insurance Requirements in South Dakota
South Dakota requires drivers to have liability car insurance with minimum coverage of:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury to multiple people
- $25,000 per accident for property damage in a single accident
The drivers must also have uninsured and underinsured policies. The coverage amounts should be the same as in their liability car insurance. For example, if the driver decides to get the state minimum car insurance, then the uninsured and underinsured policies should cover $25,000 per person and $50,000 for multiple people per accident.
No-Fault Car Insurance Laws in SD
South Dakota is a tort or at-fault state. The at-fault driver’s insurance company will pay for all medical expenses and property damage. However, the guilt can be shared. If the insurance company determines you are partly responsible for the accident, it will reduce the payout according to your share of the guilt.
SR-22 South Dakota Insurance
South Dakota requires drivers whose licenses have been suspended or revoked to file an SR‑22 Form or a certificate of financial responsibility. It’s evidence that the driver has the minimum state-required car insurance and should be maintained for at least three years.
Price Optimization in South Dakota
In their attempts to maximize their profits, insurance companies started using a procedure called price optimization. It involves using Big Data gathered from different sources to enable the company to get the highest possible price without making the client leave.
Since this highly controversial procedure utilizes data entirely unrelated to risk management, 20 states have proclaimed it illegal. Unfortunately, the South Dakota Department of Insurance has yet to take a stand on the subject. The experts recommend that you shop around and request quotes from different companies, even if you’re not planning on switching insurance providers. This will alert your insurer that you are considering other options, and the company will probably offer you a lower price to encourage you to stay.
How to Get Cheap Car Insurance in South Dakota
Check Car Insurance Reviews
Going through every insurer’s website can be overwhelming and confusing. It can be hard to differentiate important information. In addition, if you’re new to the matter, you might not be able to recognize the coverage types you actually need and may end up with a bunch of optional plans that look great on paper but provide little value.
Reviews are a good way to get the data you need to make an informed decision. On our website, you can find detailed reviews of every major insurer in the country, as well as their comparisons.
Auto Insurance Quote in South Dakota – Compare Different Types
Prices can differ from one insurer to another. The best way to find the lowest price is to pick a dozen providers and then request quotes from all of them. This will improve your chances of getting the best offer. You should also ask for quotes before buying insurance and renewing your South Dakota car registration.
See who provides the highest discounts
Discounts can reduce the rates considerably. Many drivers are eligible for multiple discounts, which can save you a lot of money. So, don’t be discouraged if your initial car insurance quote for South Dakota is high. Just review the company’s discount policy.
Most companies offer industry-standard price reductions, but some companies went one step further and introduced discounts for different occupations, membership groups, etc. By cleverly combining discounts, you could end up with perfectly affordable coverage.
Conclusion
Finding affordable auto insurance that covers all your needs may seem like a daunting task. After all, no matter what the insurance companies claim, they’re in the business of making money. But you shouldn’t only look at prices and settle for coverage that barely meets the minimum South Dakota car insurance requirements. An ideal insurance provider is one that’s dependable and makes good on its obligations. Of course, in some cases, you may have to compromise on your long list of desirables by deciding what matters to you most – price, customer satisfaction ratings, discounts, or additional perks.
People Also Ask
How much is car insurance in South Dakota?
The average annual car insurance price in South Dakota is $424 for minimum liability insurance and around $1,277 for full coverage. This is around 12% lower than the national average. However, you should keep in mind that the quotes you’ll receive will differ significantly from these averages because the insurers will calculate the quotes based on many individual factors.
Does South Dakota require car insurance?
Yes, South Dakota requires all drivers to have car insurance. The mandatory minimum liability insurance should cover:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury to multiple people
- $25,000 per accident for property damage in a single accident
The drivers must also have uninsured and underinsured policies. These should cover at least $25,000 per person and $50,000 for multiple people per accident.
Is car insurance cheaper in South Dakota?
With the average annual price of $424 for minimum liability insurance and around $1,277 for full coverage, car insurance in South Dakota is cheaper than the national average. That’s mainly because of the state’s low population density and low percentage of uninsured drivers. In addition, the road infrastructure is good, and there isn’t much traffic.
Is SD a no-fault state?
No, South Dakota is not a no-fault state. It is a tort or at-fault state. This means that the at-fault driver’s insurance company pays for all medical expenses and property damage that they cause. But state laws allow the guilt to be shared. If the insurance company determines that the no-fault driver is partly responsible for the accident, it’ll reduce the payout accordingly.
How much is car insurance in South Dakota per month?
Car insurance prices in South Dakota are below the national average. The average monthly cost is around $35 for minimum liability insurance and about $106 for full coverage. The state also requires that the drivers have uninsured and underinsured driver coverage, which may increase the price, depending on the coverage amounts. Higher coverage is recommended since minimum liability insurance amounts are somewhat limited.
Why is South Dakota car insurance so expensive?
Car insurance in South Dakota is not expensive, as the prices are below the national average. However, if you receive high quotes or your car insurance price goes up with every renewal, you should shop around for another insurer. Even if you’re not planning on switching insurance providers, requesting quotes from multiple South Dakota car insurance providers is advisable.
