The Cheapest Auto Insurance in South Dakota in 2024

South Dakota state law only requires bodily injury, property damage, and uninsured motorist coverage, leading to some of the cheapest car insurance rates in the country. Average statewide rates for liability insurance are just $23 per month, while full-coverage rates average $84 monthly.

Kemper has the overall cheapest car insurance rates in South Dakota, but other insurers like Farmers Mutual of Nebraska and Western National offer even lower rates for drivers who meet certain criteria.

At the end of the day, many factors affect your car insurance rates. We’ll compare average rates from South Dakota’s top companies and show you how to save on your monthly bill.

Key Takeaways:

• South Dakota’s $77 average monthly rates rank fourth-cheapest in the U.S.
• Kemper has the cheapest average rates in South Dakota, at just $56 per month.
• Driving without insurance is a Class 2 misdemeanor in South Dakota.

South Dakota’s Cheapest Car Insurance Companies

Even though the average cost of car insurance in South Dakota is just $77 per month, you can still find ways to save more money. The best way is to find the cheapest company for your unique profile.

The companies featured in the table below have the most competitive rates in South Dakota, according to Compare.com data.

Kemper has the cheapest car insurance available, at $56 per month, but each of the five cheapest car insurance companies in the Mount Rushmore state have average monthly policy rates within $11 of each other. But since auto insurance rates vary by a wide variety of factors, South Dakota drivers should compare quotes from at least three insurers to determine the lowest average annual premium available to them.

Let’s look closer at how insurance premiums from South Dakota car insurance companies vary by some of the most prevalent rating factors used by insurance companies across the state.

Compare.com’s Best South Dakota Insurance Companies of 2024

The best car insurance company in South Dakota is subjective: Each insurer may offer different coverage levels, discounts, and benefits that align or don’t align with your budget and lifestyle.

The three insurers featured below were chosen based on a combination of average rates in the state, available savings programs, customer satisfaction ratings and reviews, and types of coverages offered for South Dakota drivers like teens.

Kemper: Best for well-rounded coverage

Average monthly quote: $56 per month

Compare.com rating: Not rated

Trustpilot rating: 2.5 out of 5

Better Business Bureau (BBB) rating: A+

Kemper is a Florida-based insurer that was founded in 1990, specializing in personal and commercial auto, life, and personal insurance. It has some of the best overall rates in South Dakota and is often listed as one of the top-five cheapest insurers for a variety of driver categories.

With annual policies, 24/7 roadside assistance, and eight available discounts, Kemper is positioned to offer great rates for a wide variety of South Dakota drivers.

Pros:

• Lower-than-average rates
• Will file an SR-22
• Discounts for military members

Cons:

• Low Trustpilot and BBB customer scores
• Limited industry history
• No coverage information listed on website

Farmers Mutual of Nebraska: Best for minimal coverage

Average monthly quote: $23 per month

Compare.com rating: Not rated

Trustpilot rating:  N/A

BBB rating: A+

Founded in the Midwest more than a century ago, Farmers Mutual of Nebraska is the leading insurer of farms in South Dakota and has the lowest average liability-only insurance rates in the state, at just $23 per month.

Not only is it the cheapest for drivers with clean records — including teens and seniors — but Farmers Mutual of Nebraska also has the best rates for drivers with a speeding ticket.

Pros:

• Super-low liability-only rates
• Multi-policy discount for home and auto
• AM Best financial strength rating of “A” (Excellent)

Cons:

• Limited available coverages
• Very few available discounts
• Limited agents outside of Sioux Falls and Rapid City

Western National: Best for high-risk drivers

Average monthly quote: $86 per month

Compare.com rating: N/A

Trustpilot rating: N/A

BBB rating: A+

Western National is a great option for drivers who’ve made a mistake in the past — and even South Dakotans who might make one in the future. This Minnesota insurer with a 120-year history has the best deal for South Dakota drivers with DUIs and at-fault accidents.

For drivers with clean records, its Penalty-Free Promise program states that you’ll never receive higher rates after future accidents or traffic violations.

Pros:

• Free perks, like pet insurance and car seat replacement
• Wide range of available coverages
• Penalty-Free Promise prevents premium increases

Cons:

• Drivers who need an SR-22 are ineligible for certain coverages
• Only uses independent agents
• Fewer available discounts than some competitors

The Average Cost of South Dakota Car Insurance

The average monthly cost for car insurance in South Dakota is $77 per month. The table compares its average car insurance premiums to the rates of neighboring states.

South Dakota is the fourth-cheapest state in the nation for car insurance, falling just behind nearby Iowa. The state may be cheaper than the national average for multiple reasons, including aspects like its lower population, geographical factors, and the state minimum insurance laws.

But certain areas within South Dakota — like Rapid City — may have higher rates than the state average, especially when you factor in coverage types, driver profiles, and driving history.

Cheapest State-Minimum Car Insurance in South Dakota: Farmers Mutual of Nebraska

Keep in mind that coverage level always affects rates. Liability coverage is the minimum level of insurance required by the state, which is why it’s often the cheapest policy available. Liability typically covers a limit of bodily injury and property damage coverages — both of which are required in South Dakota.

The table below shows how low liability-only rates can be in South Dakota.

Farmers Mutual of Nebraska has the lowest liability rate in South Dakota, at $23 per month. All of these insurers have similar rates because their liability policies must meet the state minimum.

Now, let’s see how rates between insurers differ when adding optional coverages like collision coverage.

Cheapest Full-Coverage Car Insurance in South Dakota: Farmers

Full-coverage car insurance tends to include collision and comprehensive insurance in addition to the state-minimum liability coverage. These policies have a greater range of coverage to pay for damages to your car and medical bills, which is why full-coverage policies tend to cost more.

South Dakota’s cheapest companies for full-coverage car insurance can be found in the table below.

Farmers has the lowest average full-coverage rate in South Dakota, at $84 per month. Allied — the fifth-cheapest insurer in the state — has average rates that are more than 20% more expensive, potentially because it weighs the potential for expensive deer-vehicle collisions more heavily in its premium ratings.

Compare South Dakota Auto Insurance Rates by Age

Both men and women receive higher rates based on their age, with the youngest drivers receiving the highest rates and the oldest getting the cheapest offers. The good news is that both groups may qualify for discounts to make the price even lower, such as discounts for students getting their bachelor’s degree and for seniors who drive limited miles per month.

Let’s take a look at how rates in South Dakota vary among these two popular age groups.

Cheapest car insurance for South Dakota teens: North Star Mutual

Teen drivers have a four-times-higher fatal crash rate than adults, partially due to inexperience, overconfidence, and increased distractions. This leads to teens paying the highest average rates of any age group.

Fortunately, rates tend to drop once you reach age 25, but young drivers should still expect to pay much more than their parents.

The table below highlights South Dakota’s cheapest car insurance companies for teens, sorted by liability rates for 18-year-old drivers.

North Star Mutual has the lowest average rates for South Dakota teens, at $62 per month. But its full-coverage rates are the highest on this list, at $372 per month. Teens looking for full-coverage policies are better suited starting with Farmers, whose average full-coverage rates are less than half that of North Star Mutual.

Cheapest car insurance for South Dakota seniors: Farmers Mutual of Nebraska

Rates tend to decrease once you reach your mid-30s, then drop again around retirement age. Limited driving and less likelihood of certain car accidents allow seniors to secure some of the cheapest rates possible.

Let’s take a look at which companies offer the best car insurance rates for South Dakota seniors.

Farmers Mutual of Nebraska has the lowest price in this category, at just $20 per month. But when it comes to full-coverage policies, Kemper takes the slight edge.

Seniors should review their policy limits prior to purchasing to ensure they have the extended coverage they need, such as direct compensation for medical expenses in the event of an accident.

Compare South Dakota Auto Insurance Rates by Driving Record

Your experience behind the wheel is one of the most important rating factors for car insurance. Drivers with the best records get the best offers, but car insurance quotes tend to rise when you have a speeding ticket, at-fault accident, or DUI on your record.

Let’s take a look at how auto insurance companies raise rates for different infractions.

Cheapest car insurance for good drivers in South Dakota: Farmers Mutual of Nebraska

Drivers with good credit and a clean driving record tend to get the cheapest car insurance in South Dakota. But rates can still vary quite a bit from one company to the next.

Let’s take a look at the cheapest car insurance options in South Dakota for drivers with clean records.

Farmers Mutual of Nebraska has the lowest average liability rates for good drivers, at $23 per month, but all five companies shown have monthly rates within $5 of each other.

Kemper has the cheapest average rates for full-coverage car insurance, at $87 per month — more than 10% cheaper than any other insurer on this list. This variance in pricing shows the importance of comparing rates to find the right car insurance company and coverage level for your needs.

Next, let’s see how a good driver’s rates change with one speeding ticket on their record.

Cheapest car insurance in South Dakota after a ticket: Farmers Mutual of Nebraska

Speeding puts you at a higher risk of a car accident, which is why a single speeding ticket can raise your rates by 37%, according to Compare.com data. But not all companies increase their rates by the same amount.

With that in mind, let’s take a look at which insurers have the cheapest rates for South Dakotans with a recent speeding ticket.

Farmers Mutual of Nebraska has the cheapest liability rates for drivers with speeding tickets. Kemper’s monthly liability rates are $6 more expensive, but it has the same monthly premium as Farmers Mutual of Nebraska for full-coverage policies.

Now, let’s compare the rates with a speeding ticket on record to average rate increases after an accident.

Cheapest car insurance in South Dakota after an accident: Farmers Mutual of Nebraska

Getting in an at-fault car accident increases your auto insurance rates because your insurer has to pay for the damage or injuries you cause. Average rates increase by 44% for a single at-fault accident, according to Compare.com data, but not all insurers treat accidents equally.

Let’s examine which South Dakota insurance companies offer the best rates after an at-fault accident.

Farmers Mutual of Nebraska once again has the cheapest liability-only rates, at $32 per month, but it has higher insurance rates for a full-coverage policy than Farmers and State Farm. The latter’s $99 monthly rates are the cheapest for South Dakota drivers with a recent accident.

An at-fault accident is costly, but you’ll see below how DUI cases could lead to the highest average annual rate for car insurance in South Dakota.

Cheapest car insurance in South Dakota with a DUI: Western National

A DUI conviction increases average rates by 94%, according to Compare.com data, making it one of the most expensive traffic violations you can commit. But that doesn’t mean you’re stuck with skyrocketing rates. Some companies are better equipped to insure high-risk drivers, which means you can find a great deal if you know where to look.

With that in mind, let’s take a deeper dive into the five insurers offering the best rates to South Dakota drivers with a DUI.

Western National has the lowest average rate for liability-only insurance with a DUI, at $35 per month, but State Farm offers the best rates for full coverage. That said, all of the monthly liability rates shown are within $11 of each other, which yet again reinforces the need for comparing quotes. State Farm’s full-coverage rates, however, are nearly $60 cheaper than Progressive’s.

Remember, these rate increases don’t include fines, jail time, SR-22 filing fees, or other consequences of drinking and driving.

5 Ways to Get Cheap Car Insurance in South Dakota

Although different factors like ZIP code, age, marital status, and credit score may increase your premiums, there are also several factors that can decrease your rates. You could potentially lower your monthly insurance premiums with these tips from the Insurance Information Institute (Triple-I):

1. Ask about discounts. Most insurers offer a wide range of discounts for drivers to save. Just ask your agent or customer service representative what you qualify for.
2. Raise your deductible. By opting to pay more after an accident or claim, you could potentially lower your premiums.
3. Check your credit score. South Dakota car insurance rates can impact your credit history, which is why it’s a good idea to check your credit report regularly and resolve inaccuracies.
4. Compare costs before you purchase a car. The type of car you drive is one of a variety of factors affecting your rate. Investigate which type of vehicle gets the lowest rates before buying your next car.
5. Shopping around. Insurance is a highly competitive and highly saturated market, so new customers may benefit from certain bonuses when they sign a policy. Plus, how are you supposed to know you’re getting the best price if you don’t shop around? We recommend comparing quotes each time your current policy is renewed.

South Dakota Auto Insurance Requirements

Most states have a minimum coverage limit all drivers must maintain, and South Dakota law specifically outlines the following required coverages:

• $25,000 of bodily injury liability coverage per person
• $50,000 of total bodily injury liability coverage per accident
• $25,000 of property damage liability coverage per accident

Uninsured motorist coverage is also required for all policies, in the same policy limits listed above. All major insurance companies, agents, and licensed producers must offer these amounts as the minimum liability coverage for every South Dakota auto insurance policy.

You have the option to increase these coverage amounts, and you can also purchase additional coverages, such as comprehensive, collision, rental car reimbursement, roadside assistance, and more.

Penalties for driving without auto insurance in South Dakota

Driving without auto insurance in South Dakota is considered a Class 2 Misdemeanor. The penalties associated with this misdemeanor include a $100 fine, 30 days in county jail, or both.

The South Dakota Department of Public Safety notes that your driver’s license could be canceled, disqualified, revoked, or suspended for failing to maintain proof of auto insurance. The driver will also be required to obtain an SR-22 insurance filing.

SR-22 auto insurance in South Dakota

An SR-22 certifies that you have the liability insurance required by state law. It’s typically required for high-risk drivers who may have certain infractions on their driving record or lapses in insurance coverage.

South Dakota state law requires that all of the vehicles registered under a driver’s name be added to the SR-22 form if the driver is legally required to have proof of financial responsibility on file.

If you need an SR-22 in South Dakota, talk to your insurer first — some customers don’t realize that different companies may not offer SR-22 filings. For example, American Family will file the form on your behalf, but North Star Insurance doesn’t list this as an option on its website.

South Dakota Auto Insurance FAQs

Though rates may vary between Sioux Falls and the Black Hills, it’s helpful to know which South Dakota car insurance companies tend to offer the lowest insurance rates. Use the following information to help you make the best financial decisions when selecting car insurance coverage.

What is the cheapest auto insurance in South Dakota?

The cheapest auto insurance in South Dakota is a liability-only car insurance policy for older drivers from Farmers Mutual of Nebraska, at $20 per month. Farmers Mutual of Nebraska also offers cheap car insurance, at $23 per month for good drivers who need a liability-only policy.

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

The average cost of auto insurance in South Dakota is $77 per month, but your average monthly rate may be higher or lower based on various personal factors.

Does South Dakota have cheap car insurance?

Yes. South Dakota has some of the most affordable rates in the country. Average rates in South Dakota are the fourth-lowest in the country. Compared to the national average monthly cost of car insurance, South Dakota is $52 cheaper.

Which company has the best car insurance in South Dakota?

Kemper has the overall cheapest average auto insurance policy in South Dakota, at $56 per month. The most affordable car insurance company for full-coverage policies is Farmers, while Farmers Mutual of Nebraska has the cheapest rates for liability insurance.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. Insurance Institute for Highway Safety, “Teenagers,” Accessed November 7, 2023.
2. Insurance Institute for Highway Safety, “Older Drivers,” Accessed November 7, 2023.
3. Insurance Information Institute, “How to save money on car insurance,” Accessed November 7, 2023.
4. South Dakota Division of Insurance, “Bulletin 2002-3,” Accessed November 7, 2023
5. South Dakota Department of Labor & Regulation, “Automobile Insurance,” Accessed November 7, 2023.South Dakota Department of Public Safety, “Revoked or Suspended Licenses,” Accessed November 7, 2023.