South Dakota is among the fastest-growing states in the country. Thousands of people are relocating here each year, whether for the state’s incredible landmarks, outdoor recreation, or affordable cost of living.
For new South Dakota residents, or those thinking about moving here, it's important to know the state's auto insurance requirements and typical costs for coverage. The average cost of full coverage car insurance in South Dakota is $1,284 per year, compared to the national average of $1,582. But exactly how much you'll pay may vary based on your age, credit, and location.
- Key takeaways
- How much does car insurance cost in South Dakota?
- Average cost of car insurance in South Dakota by provider
- How does credit score affect car insurance rates in South Dakota?
- Average car insurance rates for high-risk drivers in South Dakota
- How does age affect car insurance rates in South Dakota?
- South Dakota car insurance rates by city
- SD's minimum car insurance requirements
- How to save money on car insurance in South Dakota
- Methodology
- FAQs about car insurance costs in SD
Key takeaways
- The average cost of car insurance in South Dakota is $1,284 per year for full-coverage policies.
- Drivers with a clean driving record and excellent credit pay an average of $1,181 per year for state-minimum liability coverage.
- Teen drivers pay an average of $3,456 per year for auto coverage.
How much does car insurance cost in South Dakota?
Despite South Dakota's population growth over the past few years, it still has a much lower-than-average population density. As a result, there are fewer vehicles in the state, so car insurance tends to be relatively affordable.
The average cost of car insurance in South Dakota is $1,284 per year for full-coverage policies — that includes liability, collision, and comprehensive insurance. And state-minimum liability coverage is just $345 per year.
Avg. cost for full coverage | Avg. cost for minimum coverage | Cheapest insurance provider |
$1,284/year | $345/year | Farmers Mutual Of Nebraska |
Avg. for young drivers | Avg. cost for seniors | Avg. for high-risk drivers |
$3,456/year | $1,360/year | $1,781/year |
Average cost of car insurance in South Dakota by provider
Many major insurance companies issue policies in South Dakota, including nationwide insurers like GEICO and State Farm. However, SD also has smaller insurers that serve a limited number of states, such as Farmers Mutual of Nebraska. These insurance companies may offer lower premiums than some of the bigger ones.
We found that Farmers Mutual of Nebraska has the lowest average premiums for full-coverage policies. But for state-minimum insurance coverage, USAA has the lowest average premiums of South Dakota providers.
Provider | Full coverage | Minimum liability coverage |
Farmers Mutual of Nebraska |
$718/year | $257/year |
American Family |
$1,324/year | $362/year |
Allstate | $1,101/year | $397/year |
Progressive | $1,379/year | $424/year |
GEICO | $1,365/year | $373/year |
State Farm | $927/year | $285/year |
USAA | $1,148/year | $188/year |
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Check RatesHow does credit score affect car insurance rates in South Dakota?
In many states, insurers review drivers' credit histories as a common practice during the underwriting process. South Dakota is no exception — insurers can use your credit score to help determine your auto insurance premiums. And if you have poor-to-fair credit, you may have to pay more for coverage.
We found that drivers with credit scores below 650 pay $2,869 per year on average for auto insurance coverage. That’s compared to the state average of $1,284.
Credit health | Avg. annual premium |
Poor (550-649) | $2,869/year |
Average (650-699) | $1,600/year |
Good (700-749) | $1,456/year |
Excellent (750+) | $1,181/year |
Average car insurance rates for high-risk drivers in South Dakota
Driving recklessly or while under the influence can have significant financial consequences in South Dakota. SD drivers with a DUI conviction see their premiums increase by an average of $1,178 per year. And a speeding ticket causes premiums for South Dakota drivers to increase by an average of $592 per year.
Violation | Avg. annual premium before violation* | Avg. annual premium after violation | Avg. cost increase |
At-fault accident | $1,284/year | $2,212/year | $928 |
DUI | $1,284/year | $2,462/year | $1,178 |
Speeding ticket | $1,284/year | $1,876/year | $592 |
*Assumes clean driving record with good credit
How does age affect car insurance rates in South Dakota?
Like in many other states, teens in South Dakota pay much more for auto insurance than other age groups. The average annual premium for drivers 18 years of age is $3,806 — more than the state average of $1,284.
As you age and get more experience behind the wheel, car insurance premiums typically decrease. In the Mount Rushmore State, drivers in their 60s have the lowest average premiums at $1,151 per year.
Age | Avg. annual premium |
18 | $3,806/year |
25 | $1,377/year |
30 | $1,292/year |
40 | $1,335/year |
60 | $1,151/year |
South Dakota car insurance rates by city
Areas with a lot of people and higher crime rates tend to have the highest car insurance premiums. In South Dakota, Rapid City has the highest average premiums at $1,797 per year — more than the $1,284 state average.
That higher insurance rate is due to the higher crime rate in SD’s second-largest city. NeighborhoodScout gave Rapid City a six on its crime rating index, meaning it considers this town more dangerous than 94% of U.S. cities. And Rapid City’s property crime rates are significantly higher than the rest of the state, indicating that residents here are more likely to be victims of crimes like auto theft or vandalism.
City | Avg. annual full-coverage premium |
Rapid City | $1,797/year |
Yankton | $1,632/year |
Watertown | $1,510/year |
Aberdeen | $1,482/year |
Brookings | $1,437/year |
Sioux Falls | $1,406/year |
SD's minimum car insurance requirements
All drivers in South Dakota legally must have car insurance, and your policy must meet the following minimums:
- $25,000 in bodily injury liability for one person
- $50,000 in bodily injury liability for two or more people
- $25,000 in property damage liability
Additionally, the state requires drivers to have uninsured motorist insurance that meets the following requirements:
- $25,000 per person in bodily injury protection
- $50,000 per accident in bodily injury protection
How to save money on car insurance in South Dakota
To save money on your car insurance premiums in South Dakota or anywhere else, follow these tips:
- Decrease your deductible: Your premiums are partially based on your deductible — the amount of money you pay for repairs or injuries before your insurer starts paying out on a claim. The higher your deductible is, the lower your premiums will likely be. That means increasing your deductible can lower your current insurance premium.
- Take a driving course: Some insurers offer discounts if you complete a qualifying defensive driver course. To find out if your insurer offers a defensive driving discount, contact your agent.
- Ask about other discounts: Call, email, or visit your local agent to ask about other insurance discount programs. Most insurers offer several discounts, including good student, multi-policy, multi-vehicle, and accident-free discounts.
- Do your homework: Before purchasing a policy, shop around and request quotes from several companies to find the best car insurance rates possible.
Methodology
Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.
FAQs about car insurance costs in SD
Is car insurance expensive in SD?
No, car insurance is less expensive in South Dakota than it is in most other states. The average cost of full-coverage policies in South Dakota is $1,284 per year compared to the national average of $1,582.
How much is car insurance per year in SD?
The average cost of car insurance in South Dakota is $1,284 per year for full-coverage policies and $345 per year for state-minimum liability insurance.