Rates for car insurance in South Dakota depend on many factors — none more important than where you get your quote. You’ll typically receive very different estimates for a policy depending on the insurer, which is why it’s best to compare as many deals as you can.
Your driving history and personal circumstances such as your age and credit score also affect your quotes. The cheapest company for your retired neighbor who no longer commutes may not offer the lowest rates for you, and vice versa. To help you find the most competitive prices for your situation, NerdWallet gathered quotes from the seven largest insurers in the state and found the three cheapest options for these driver profiles:
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Cheapest for good drivers
For drivers with no at-fault crashes, DUIs or moving violations; range of average prices from the seven largest insurers: $806 to $1,541 per year.
Price
- $806/year
Price
- $900/year
Price
- $952/year
Among the three cheapest companies, the average cost was $886 per year. Allied Insurance, a Nationwide affiliate, led the pack with the lowest average rate at $806 per year. State Farm had the next-cheapest average quote, about $100 more than Allied’s.
Drivers without accidents on their records should look to lower their rates with discounts. Practically every insurer offers perks for avoiding accidents and claims, meaning safe motorists are usually well-positioned to earn extra savings.
Cheapest for young drivers
For drivers in their early 20s; range of average prices from the seven largest insurers: $411 to $775 per year.
Price
- $411/year
Price
- $415/year
Price
- $457/year
Because of their inexperience and high accident risk, young car insurance customers can typically expect steep rates if they purchase the same amount of coverage as older drivers. However, since those in their early 20s have less at risk financially, in most cases, it’s reasonable for them to reduce their car insurance coverage amounts to help keep costs at bay.
We reflected these leaner coverage needs in our test and found fairly affordable results. All three of the cheapest companies notched rates under $39 a month for this driver group.
Cheapest for drivers with one at-fault crash
Range of average prices from the seven largest insurers: $1,042 to $2,129 per year.
Price
- $1,042/year
Price
- $1,255/year
Price
- $1,526/year
The cheapest quote we found for drivers with an at-fault crash on record was $1,042 per year from State Farm. That’s $236 higher than the best price for drivers of the same age with a clean record.
This group had the widest range of prices of any we sampled. There was a $1,087 difference between the lowest and highest rates, which goes to show how much drivers with blemished records have to gain by shopping around and testing the waters with as many companies as they can.
Cheapest for drivers with poor credit
For drivers placed in the “Poor Credit” tier using the Quadrant Information Services rate tool; range of average prices from the seven largest insurers: $1,148 to $2,097 per year.
Price
- $1,148/year
Price
- $1,244/year
Price
- $1,249/year
In most states, including South Dakota, companies use a credit-based insurance score to help gauge applicants’ chances of accidents and claims, and tend to charge higher rates for drivers with low credit.
Farmers returned the cheapest average rate for this group at $1,148 per year, which comes to roughly $96 a month. The similar-sounding Farmers Mutual of Nebraska — which only sells policies in South Dakota and (you guessed it) Nebraska — was next at about $100 a year more.
Cheapest for retired drivers
For drivers in their mid- to late 60s who no longer use their car for commuting; range of average prices from the seven largest insurers: $662 to $1,468 per year.
Price
- $662/year
Price
- $734/year
Price
- $751/year
Older motorists may have trouble finding affordable rates if they use their car as much as middle-age drivers. But most retirees cut down on overall driving once they give up the daily commute, a factor we took into account when generating prices for this age group.
In our test, State Farm led the field with an average quote of $662 per year. Although retirees should have good deals available, shopping around is still key. The most expensive average quote we retrieved was $1,468 per year; getting several estimates is the best way to weed out sky-high rates like this one.
Minimum car insurance requirements in South Dakota
If you live in South Dakota, you must insure your car with liability insurance and uninsured/underinsured motorist bodily injury coverage with at least the following limits:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per crash
- $25,000 property damage liability per crash
- $25,000 uninsured/underinsured motorist bodily injury coverage per person
- $50,000 uninsured/underinsured motorist bodily injury coverage per crash
Liability insurance kicks in if you cause a crash. It will pay for others’ injury treatment and property damage repairs, up to your limit.
Uninsured/underinsured motorist coverage pays for your injuries and those of your passengers, up to your limit, if you’re struck by a driver who lacks auto insurance, or one who has some coverage but not enough to cover your bill.
For help choosing your coverage limits and to learn about other options you might want, such as collision and comprehensive, check out NerdWallet’s guide to minimum car insurance requirements by state.
Alternative car insurance for high-risk drivers
If you have multiple crashes or moving violations on record, poor credit or other insurance red flags, you could have trouble securing a policy on the voluntary market.
As an alternative option, you can seek coverage through the South Dakota Automobile Insurance Plan. To be eligible, you must have tried and failed to get car insurance elsewhere within the last 60 days.
For more help finding the best car insurance quotes in South Dakota, try NerdWallet’s rate comparison tool.
Alex Glenn is a staff writer at NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
This article was updated on June 2, 2016. It was originally published in November 2013.
METHODOLOGY
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured/underinsured motorist bodily injury coverage and collision and comprehensive with a $1,000 deductible. We used a 2012 Toyota Camry in all cases.
Our sample young driver was age 22 and carried the minimum required coverage. Our sample retired driver was age 67 and drove 5,000 annual miles; all other groups drove 10,000 annual miles. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
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