Average car insurance cost in Sioux Falls, South Dakota

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At $2,478 per year, full coverage car insurance in Sioux Falls is $97 less than the state average and $100 less than the national average. Farmers Mutual of Nebraska offers the lowest average rate at $1,495, but your actual premium depends on factors like your age, driving record, and coverage level.

Where you live plays a bigger role than most drivers expect. Insurers price risk by ZIP code, so local factors – traffic density, accident and theft rates, repair costs, weather, and the share of uninsured drivers on the road – all feed into what you pay in Sioux Falls. That’s why two drivers with identical records can pay very different rates depending on which side of a city line they live on.

Here’s how Sioux Falls’s average premium stacks up against South Dakota and national rates:

How much car insurance do you need in Sioux Falls?

Most drivers in Sioux Falls need at least liability coverage, but full coverage offers stronger financial protection because it pays for your own car, not just the other driver’s.

Liability only covers damage you cause to others, if your car gets damaged in an accident, stolen, or hit by a falling tree, you’re paying out of pocket without full coverage. Here’s what each coverage level costs per year and what it includes:

• State minimum coverage: $405 per year – Limits of $25,000 bodily injury per person, $50,000 total bodily injury per accident, $25,000 property damage. The lowest coverage level allowed by law.
• Liability only coverage: $441 per year – Limits of $50,000 bodily injury per person, $100,000 total bodily injury per accident, $50,000 property damage. Pays for others’ injuries and property damage when you’re at fault but doesn’t cover your own vehicle.
• Full coverage: $2,478 per year – Limits of $100,000 bodily injury per person, $300,000 total bodily injury per accident, $100,000 property damage. Combines liability with collision and comprehensive, so your own car is covered too.

What are the cheapest car insurance companies in Sioux Falls?

Farmers Mutual of Nebraska offers the cheapest full coverage car insurance in Sioux Falls, averaging $1,495 per year, while Progressive has the second-cheapest premium, averaging $1,563 per year. Rates are based on limits of $100,000 bodily injury per person, $300,000 per accident, and $100,000 property damage.

Rates differ by company because each insurer calculates risk differently. Comparing quotes from multiple providers is the best way to find a rate that fits your budget.

Below is a breakdown of average yearly and monthly car insurance rates from different insurers in Sioux Falls.

Do men or women pay more for car insurance in Sioux Falls?

In Sioux Falls, male drivers pay $2,506 per year for full coverage, which is $57 more than the $2,449 per year that female drivers pay.

Gender factors into pricing in most states, though seven don’t allow it. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania stand out as exceptions.

The Insurance Information Institute (Triple-I), a nonprofit that researches insurance trends, points to safer driving habits and fewer serious accidents among women as the reason. Insurers build that difference into what men pay.

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How does age affect car insurance rates in Sioux Falls?

Teen drivers pay the most for car insurance in Sioux Falls, averaging $7,133 per year, or $594 per month. Rates drop as drivers gain experience – young adults ages 20 to 24 average $3,542 per year, adults 25 to 55 average $2,397 per year, and seniors 60 to 75 average $2,156 per year.

Teens aged 16 to 19 are more likely to be in crashes due to inexperience, which drives up their rates. According to theInsurance Information Institute, teen drivers pay $3,591 more annually than young adult drivers.

As drivers get older and gain experience, premiums typically go down. Young adults ages 20 to 24 pay $3,542 per year – 50% what teen drivers pay.

Below is a breakdown of average annual full coverage car insurance rates by age group.

How have car insurance rates changed in Sioux Falls?

Car insurance rates in Sioux Falls show a upward trend since 2023 to 2025, with average rates increased by 9%, or $206.

If your own rates have climbed, shop around to confirm you’re not overpaying compared to what other insurers offer.

The graph below tracks insurance costs from 2022 to 2025, showing the long-term trend behind today’s rates.

Methodology

Insure.com commissioned car insurance rates in 2026 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors analyzed 65,756,440 auto insurance quotes collected in 2025 across 51 states, 29,159 cities and 34,595 zip codes. Quotes came from 195 insurance companies across 73 company groups, giving a national average annual premium of $2,578.

Each quote reflects a 40-year-old male and female driver with a Honda Accord LX, no violations and a good insurance score, driving 10,000 miles a year with a 12-mile daily commute. Coverage includes:

• 100/300/100 liability limits (up to $100,000 per person and $300,000 per accident for bodily injury, and $100,000 for property damage)
• $500 deductible for collision and comprehensive

The quoted insurance rates are for comparison purposes, and your rates may vary.

Alisha Ambre

 

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Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.