The best, cheapest car insurance in South Dakota

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Best car insurance company in South Dakota

Drivers in South Dakota pay an average of $2,280 a year or $190 a month for car insurance coverage which makes it the 5^th most expensive state in the country.

Even though car insurance is pretty expensive in South Dakota, it’s possible to find affordable coverage with top insurers such as Nationwide, Allstate, State Farm, and other insurers.

Auto-Owners is our choice for the best car insurance in South Dakota. It finished first in our rankings with 4.28 out of 5 stars and an average premium of $2,566 a year, or $214 a month, which is $286 more than the state average.

State Farm was second with a score of 4.14 stars followed by Nationwide with 4.11 stars.

The best car insurance companies in South Dakota

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state/regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in South Dakota

Nationwide is the cheapest option for car insurance in South Dakota.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age and marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The numbers highlight these differences. Progressive is the most expensive insurer in South Dakota with an average premium of $3,163 a year.

On the other hand, as mentioned above, the average premium for Nationwide policyholders in South Dakota is $1,526 a year. Allstate had the second cheapest coverage in South Dakota at $2,070 and State Farm rounded out the top three cheapest at $2,096.

Below is a list of the cheapest full-coverage car insurance rates in South Dakota for a 40-year-old driver of a 2023 Honda Accord LX.

Cheapest full-coverage insurance in South Dakota

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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Full coverage car insurance in South Dakota

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

Shopping for car insurance in South Dakota

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in South Dakota by age

Car insurance rates will vary by age as reams of statistics show that teen and young adult drivers, because they are inexperienced on the road, take bigger risks and are more likely to get in anaccident and file a claim, which is why they pay more for coverage than older more experienced drivers.

Nationwide turned out to be the best insurer in South Dakota for drivers of all ages. The numbers show the difference between young and old drivers with the lowest premium for a teen coming in at 91% more than the lowest premium for a senior driver.

Once a driver hits 25, rates will start to drop, assuming they keep their driving record clean, and will stay stable until their 70s when they will start climbing a bit.

Cheapest car insurance for senior drivers in South Dakota

Seniors in the state pay more for coverage than all other driver groups, except for teens. Nationwide is the most affordable option for seniors with a yearly premium of $1,243 or $104 a month. State Farm was the second cheapest at $1,818 and Farmers rounded out the top three at $1,841.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

The chart below shows the average premium for senior drivers.

Average rates for seniors in South Dakota

Car insurance for young drivers in South Dakota

Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In South Dakota, Nationwide is the cheapest option for young adults with a yearly premium of $2,392 or $199 a month.

Farmers is the next most affordable with an average rate of $2,905 followed by State Farm at $3,142.

Young drivers who maintain a clean driving record can expect their rates to drop even more as they reach their late 20s.

The table below shows the best insurers for young drivers in South Dakota:

Average rates for young drivers in South Dakota

Car insurance for teen drivers in South Dakota

Although teen drivers always pay much higher premiums than other driver groups, Nationwide offers teens the cheapest rate at $4,562. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

State Farm has the second most affordable premium at $4,973 a year followed by Auto-Owners at $5,952 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While Nationwide was the most affordable at $4,562, Progressive was the most expensive with an annual premium of $9,057.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

The chart below shows average premiums for teens in South Dakota:

Average rates for teens in South Dakota

Average cost of car insurance in South Dakota

In South Dakota, the average premium is $2,280, which makes South Dakota the 5^th most expensive state for coverage.

All states have large metropolitan areas, which will always push up the cost of insurance as more vehicles on the road lead to more accidents and claims. A high crime rate will also impact rates.

“If a state has a higher rate of car insurance claims associated with vandalism or car theft, prices are usually higher because car insurance companies view insuring these cars as a higher risk for them,” says Chong Gao, director of product management R&D at Mercury Insurance.

The chart below is the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

Which South Dakota ZIP codes are most expensive for car insurance?

Car insurance costs in South Dakota can vary significantly based on your location, as insurers consider the ZIP code where your vehicle is primarily parked when determining your premium.

Our data shows that the Oglala area came out as the most expensive with an average annual premium of $2,871. Pine Ridge was No. 2 and Porcupine was No. 3.

Here are the most expensive ZIP codes in South Dakota for car insurance:

Most expensive ZIP codes in South Dakota

Which South Dakota ZIP codes are the cheapest for car insurance?

When it comes to cheap car insurance in South Dakota, these ZIP codes have the most affordable coverage. The area around Brookings has the lowest premiums in South Dakota with an average premium of $1,916.

Least expensive ZIP codes in South Dakota

Cheapest car insurance for high-risk drivers in South Dakota

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $2,117 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $2,474.

A DUI is considered a major violation and will raise the average premium to $3,581.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in South Dakota after a traffic incident

Minimum car insurance requirements in South Dakota

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. South Dakota requires drivers to carry 25/50/25 in liability coverage, which translates into:

• $25k for bodily injury and $50,000 for death for a person involved in an accident
• $50k for bodily injury and $100,000 for death for two or more people in an accident
• $25k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like South Dakota.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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