The best and cheapest car insurance in South Dakota

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State Farm ranks as the best car insurance company in South Dakota, earning 4.49 out of 5 stars based on our review of pricing, customer satisfaction and financial strength. With average annual premiums of $2,551, it costs $24 less than the state average.

In South Dakota, drivers pay an average of $2,575 per year or $215 per month for coverage.

Auto-Owners placed second with 4.32 stars, while Progressive followed with 4.07 stars.

How we picked the top car insurance companies

When choosing the top car insurance companies in South Dakota, we looked beyond just the average cost of coverage. We also reviewed customer satisfaction data from J.D. Power, financial strength ratings from AM Best and complaint trends reported by the National Association of Insurance Commissioners (NAIC). If state or regional data wasn’t available, we used national averages to keep the comparisons consistent and fair for readers.

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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Which insurers offer the cheapest car insurance in South Dakota?

Farmers Mutual of Nebraska has the cheapest average car insurance rate in South Dakota at $1,504 a year.

Other low-cost insurers in South Dakota include:

• Progressive, with average rates of $2,270 a year, or $189 a month
• Allstate, with average premiums of $2,336 a year, which comes out to $195 per month

On the higher end, Iowa Farm Bureau has the highest average premium at $4,212 a year.

Keep in mind that your actual rate may be different. Insurers consider factors like your driving record, credit score, age, vehicle and ZIP code when calculating premiums, so the cheapest company for the average driver may not be the cheapest for you.

Below are the cheapest car insurance rates by state, based on a profile of a 40-year-old driver with a Honda Accord LX to ensure fair, apples-to-apples comparisons. Rates are for full coverage car insurance.

What is full coverage car insurance?

Full coverage car insurance combines several types of protection to provide broader financial coverage. It generally includes liability insurance (which is required in most states) along with collision and comprehensive coverage.

These additional coverages pay for damage to your own vehicle caused by accidents, theft, severe weather, vandalism and other non-collision incidents. While full coverage offers more protection than minimum liability alone, it also comes at a higher cost and is often especially worthwhile for newer, financed or higher-value vehicles.

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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How to find the best 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.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. That means checking:

• The same liability limits
• The same deductibles
• The same coverage types

For instance, if one quote lists 25/50/25 in liability coverage and another lists 50/100/100, the lower premium may simply reflect less coverage rather than a better value. Many insurance agents suggest carrying at least 50/100/100, and higher limits may be appropriate depending on your income, assets and overall financial situation.

You can also lower your premium by:

• Maintaining a strong credit score
• Avoiding tickets and accidents
• Bundling home and auto insurance with the same carrier

Which companies have the cheapest car insurance for seniors in South Dakota?

Senior drivers in South Dakota generally pay higher car insurance rates than most age groups, though teens still tend to pay the most overall.

The cheapest car insurance companies for seniors in South Dakota are:

• Farmers Mutual of Nebraska: $1,357 a year ($113 a month)
• Progressive: $1,521 a year
• Allstate: $2,234 a year

Insurers typically charge seniors more because premiums reflect overall risk trends, including claim frequency and age-related driving factors such as slower reaction times and vision changes. That said, many seniors can still find lower rates by keeping a clean driving record, driving fewer miles and taking advantage of mature driver or safe driver discounts.

The chart below shows the average car insurance premiums for senior drivers in South Dakota.

Which companies have the cheapest car insurance for young drivers in South Dakota?

While rates start to drop for teen drivers as they become young adults, they still pay slightly higher rates than more experienced drivers. According to our data, Farmers Mutual of Nebraska is the cheapest insurer for drivers in their early 20s with an average premium of $1,975 a year or $165 per month.

Progressive was the second cheapest insurer at $2,733 and Allstate will insure a young driver in South Dakota for $3,643 a year.

Rates will continue to drop (assuming a clean driving record) as drivers hit their late 20s and move into their 30s. The chart below shows the average premiums for young drivers.

Which companies have the cheapest car insurance for teen drivers in South Dakota?

In South Dakota, Farmers Mutual of Nebraska offers the cheapest car insurance for teen drivers, with average premiums of $3,117 per year or $260 per month.

“Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

North Star Mutual is the next most affordable option at $5,139 per year or $428 per month, followed by Progressive at $6,509 per year.

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

Why the cheapest company may vary by driver

The lowest average rate doesn’t always mean the lowest quote for you. Car insurance is highly personalized, and insurers price policies differently based on risk.

Key factors that affect your premium include:

• Driving record
• Credit score (in most states)
• Age and marital status
• Vehicle make and model
• ZIP code and local risk levels

Age is one of the biggest pricing factors. For example, adding a teen to a policy can significantly increase premiums because teens are the least experienced drivers and are more likely to be involved in accidents and file claims.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

Parents can help offset higher costs by asking about good student discounts, insuring a less expensive vehicle or adjusting coverage if the car’s value is low.

What is the average cost of car insurance in South Dakota?

In South Dakota, drivers pay an average of $2,575 per year for car insurance.

Rates can vary significantly from one state to another because insurers set premiums based on overall risk patterns, including claim frequency, repair expenses, state laws and local accident trends. Even within South Dakota, drivers may receive different quotes depending on factors such as driving history, age, vehicle type and ZIP code.

The chart below displays the average rate in South Dakota for a 40-year-old driver with 100/300/100 coverage and a $500 collision and comprehensive deductible driving a Honda Accord LX.

Which cities and ZIP codes in South Dakota are the most expensive for car insurance?

Oglala has the highest car insurance rates in South Dakota, with average premiums reaching $3,081 per year across its most expensive ZIP codes.

Insurers use ZIP code data to assess localized risk factors, including traffic density, crime rates and exposure to severe weather. Urban areas with higher accident frequency or vehicle theft claims typically have the highest premiums.

According to our analysis of city and ZIP code data, the following areas are the most expensive in South Dakota for car insurance:

Which South Dakota cities and 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 Gayville has the lowest premiums in South Dakota with an average premium of $2,298.

How location in South Dakota impacts car insurance rates

Your ZIP code can significantly influence what you pay for car insurance in South Dakota. Insurers look at local risk factors such as accident rates, traffic density, repair costs and weather-related claims when setting premiums.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Gao.

Because insurers weigh these location-based risks differently using their own pricing models, quotes can vary widely even for drivers with similar profiles living in different parts of the state.

Which companies have the cheapest car insurance for high-risk drivers in South Dakota?

Traffic violations and accidents can significantly increase your car insurance rates because insurers may classify you as a higher-risk driver.

For example, a speeding ticket can raise the average premium to $3,371 and typically affects your rates for up to three years. An at-fault accident tends to have a larger impact, pushing the average cost of coverage to around $3,944.

A DUI is considered a major violation and usually leads to the steepest increase, with average premiums rising to $5,335.

The table below shows how much car insurance rates increase on average after common driving incidents.

Minimum car insurance requirements in South Dakota

Drivers in South Dakota are required to carry at least 25/50/25 in liability insurance to legally operate a vehicle. This minimum coverage pays for injuries and property damage you cause to others in an accident.

However, state-required limits are often modest. In a major crash, medical expenses and vehicle repairs can quickly exceed those minimum amounts – and anything beyond your coverage becomes your financial responsibility.

To better protect your savings and income, many insurance professionals suggest higher liability limits, such as 100/300/50. Increasing your coverage can provide an added layer of financial security if the unexpected happens.

That required coverage translates into:

• $25,000 for injury/death per person
• $50,000 for injury/death per accident
• $25,000 for damage to property

Final thoughts on the best and cheapest car insurance in South Dakota

The best car insurance in South Dakota depends on your budget, driving profile and coverage needs. State Farm delivers strong overall value by combining competitive pricing with high customer satisfaction and financial stability.

That said, the cheapest insurer for the average driver may not be the cheapest for you. Factors like your age, driving history, vehicle and ZIP code all influence your final quote, which is why comparing multiple insurers is key.

To get the best rate in South Dakota, compare quotes from at least three companies, review coverage limits (not just price) and take advantage of discounts such as bundling, safe driver, telematics or good student savings. A few minutes of comparison shopping can lead to significantly lower premiums without sacrificing coverage.

What our experts say

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

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

Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups

Methodology

Our car insurance analysis is based on 2026 rate data across all 50 states and Washington, D.C., covering 29,159 cities and 34,595 ZIP codes.

For standard rate comparisons, we analyzed 65,756,440 quotes from 195 companies across 73 insurer groups. Rates reflect a 40-year-old male and female driving a Honda Accord LX with 100/300/100 liability limits, $500 collision and comprehensive deductibles, a good insurance score, no violations, a 12-mile commute and 10,000 annual miles. The national average premium for this profile is $2,578 per year.

To measure the impact of risk factors, we reviewed an additional 95,071,152 quotes modeling at-fault accidents, DUI/DWI, speeding violations and poor credit, using the same base profile for consistency.

Company rankings are weighted as follows:

• J.D. Power (30%) – customer satisfaction
• Annual premium (25%) – average cost
• AM Best (25%) – financial strength
• NAIC (20%) – complaint index

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.

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