The Complete Guide to South Dakota Car Insurance
Lemonade is on the way to the Mount Rushmore State and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things SD car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in South Dakota?
Car insurance in South Dakota averages $196/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Sioux Falls | $174 |
| Rapid City | $207 |
| Aberdeen | $168 |
| Brookings | $162 |
| Watertown | $161 |
Source: ValuePenguin
Why is car insurance so low in South Dakota?
South Dakota drivers face unique risks that drive insurance costs
Uninsured drivers
7.4% of drivers in South Dakota are uninsured vs. 13% nationally, lowering costs for everyone else.
Car theft
FBI data shows there were 1,698 reported motor vehicle thefts in 2024 in SD, down 21% from the previous year.
Natural disasters
SD has a relatively low FEMA disaster rating of 27, lowering comprehensive coverage costs, though tornado and inland flooding are still threats.
What car insurance do I need in South Dakota?
All South Dakota drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for South Dakota drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Bodily injury liability | $25,000 (per person) $50,000 (per accident) | Medical bills, lost wages, and other costs when you hurt someone else in an accident | Your own injuries, damage to your car, amounts above your policy limits |
| Property damage liability | $25,000 | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
What additional car insurance coverages are offered in South Dakota?
Beyond state minimums, these optional coverages provide
extra protection for South Dakota drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in South Dakota?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from badlands off-roading
What happens if I drive without insurance in South Dakota?
South Dakota takes uninsured driving seriously, and the penalties add up fast.
Fines
$100-$500 for any violation, plus reinstatement fees ranging $50-$200.
Suspension
License suspended 30 days to 1 year depending on circumstances.
Jail time
Up to 30 days in jail, either instead of or in addition to fines.
What do you need to get a car insurance quote in South Dakota?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in South Dakota?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
South Dakota car insurance FAQs
Is South Dakota a no-fault state?
No, South Dakota isn’t a no-fault state. South Dakota uses at-fault auto insurance. If you’re injured in an accident, you can seek compensation from the responsible party. PIP insurance is optional.
Do I need insurance to register a car in South Dakota?
Yes, South Dakota requires insurance to register a vehicle. You must carry minimum liability coverage. Proof of insurance may be required during registration, and coverage must be maintained while your vehicle is registered.
What are the top risks for driving in South Dakota?
South Dakota’s rural highways feature wildlife crossings and severe winter weather that persists for months. Long distances between towns create dangerous driver fatigue situations, while snow and ice affect road safety. Agricultural traffic is common on rural routes.
How long do I have to report an accident in South Dakota?
South Dakota requires accidents involving injury, death, or property damage of $1,000 or more to be reported immediately to police. If no officer responds, you must file a report within 10 days. The report is submitted to the Department of Public Safety. Insurance notice should be prompt.
What are the top safety tips for driving in South Dakota?
In South Dakota, watch for wildlife and farm equipment on country roads. Prep for winter by slowing down. Take breaks to avoid getting drowsy on long drives. Drive carefully at night.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
Continue Reading
How Much Does Car Insurance Cost in 2026?
Let’s dig into the factors that impact car insurance rates.
How Much Does it Cost to Repair a Car Dent?
From $50 dings to $3,000 disasters, here’s what dent repair costs and how to pay less.
How Much Does Brake Pad Replacement Cost?
Brake pad costs, warning signs, and when insurance helps.
How Much Does Car AC Repair Cost?
AC repair costs, warning signs, and insurance coverage explained.
How Much Does It Cost to Repair a Tire?
What you can expect to pay to repair or replace your damaged tire at the repair shop.
How Much Does a Water Pump Replacement Cost?
Costs, coverage, and what you need to know.