INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in South Dakota for 2024

Updated March 4, 2024
Fact checked
Farmers Mutual Of Nebraska is generally the cheapest car insurance in South Dakota for full coverage policies.

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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.

In this article

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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How 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. 

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.