Paying for car insurance is just a part of owning a car.  South Dakota’s auto insurance costs are generally below the U.S. average, but rates have climbed since 2021; many good‑driver full‑coverage policies now fall in the mid‑$1,000s per year and minimum coverage often lands in the low‑to‑mid $300s (see Bankrate, The Zebra, and BLS CPI).

We chose the best car insurance companies in South Dakota based on annual premium cost, consumer support and satisfaction, coverage options, and online resources, incorporating the latest pricing benchmarks and regional customer satisfaction insights from J.D. Power. Some of the top picks for the state are also part of our national list of best car insurance companies.

The 4 Best Auto Insurance Companies in South Dakota

• Allstate: Best for robust coverage
• American Family: Best for customizable coverage
• State Farm: Best for customer service
• USAA: Best for military-centric options

Compare the Top Car Insurance Companies in South Dakota

The average price for car insurance will vary depending on a number of situations. Credit score, driving record, the city in South Dakota you live in, age of the car, and more all affect your premium in South Dakota.  Recent studies show urban areas like Sioux Falls and Rapid City often price higher than rural counties, and overall premiums have increased since 2021 due to higher claim severity and repair costs (see Bankrate and The Zebra).

The comparison data above reflects 2021 inputs; current 2025 averages are higher due to market-wide inflation in claim costs. For up-to-date South Dakota benchmarks, see Bankrate and The Zebra.

* Data provided by Bankrate.com

** J.D. Power 2024 Auto Insurance Study for the region that includes South Dakota. Based on a 1,000-point scale. USAA not officially ranked due to eligibility restrictions.

Allstate

American Family

State Farm

USAA

* Data provided by Bankrate.com.

**J.D. Power’s 2024 U.S. Auto Insurance Study rating for the Central region. Based on a 1,000-point scale.

The Average Cost of Car Insurance in South Dakota

Several factors influence the average cost of car insurance in South Dakota, like extreme weather, crime rates, driving statistics, and more. Driving habits, traffic violations, age and sex of the driver, type of vehicle, etc., also influences the premium you’ll pay.  Premiums have risen in recent years alongside higher repair costs and claim severity; severe convective storms have also contributed to losses across the Great Plains (see BLS CPI and NOAA).

Today, many clean-record drivers in South Dakota can expect full coverage to price in the mid-$1,000s per year and minimum coverage in the low-to-mid $300s, on average. Nationally, full coverage commonly lands in the mid-$2,000s. Actual quotes vary widely by city, vehicle, credit, and coverage choices (see Bankrate, NerdWallet, and The Zebra).

Top 3 Cheapest Car Insurance Companies in South Dakota

* Data provided by Bankrate.com; figures reflect an earlier dataset and may be higher today. For current statewide benchmarks and cheapest-company snapshots, see Bankrate’s South Dakota page.

Top 3 Most Expensive Car Insurance Companies in South Dakota

* Data provided by Bankrate.com; figures reflect an earlier dataset and may be higher today. Compare multiple quotes, as rank order can change by driver profile (The Zebra).

Top 3 Cheapest Cities for Car Insurance in South Dakota 

* Data provided by Bankrate.com; city-level averages fluctuate year to year and have generally increased since 2021. Recent trackers show rural areas often price lower than Sioux Falls and Rapid City (Bankrate).

Top 3 Most Expensive Cities for Car Insurance in South Dakota 

* Data provided by Bankrate.com; current averages are typically higher than 2021. City rankings can shift as theft, traffic and repair costs change (The Zebra).

Guide to South Dakota Car Insurance 

South Dakota is an “at fault” (tort) auto accident state, so whoever is at fault for causing an accident is responsible for all costs up to policy limits. Insurance prices vary by location and risk — larger cities often see higher averages than rural counties. For current theft context, see this overview of vehicle theft rates by state and the FBI Crime Data Explorer. South Dakota’s weather can also influence premiums through hail and severe-storm losses.

A conviction for driving without proof of insurance is considered a “Class 2 Misdemeanor” by South Dakota law and may be punishable by up to a $500 fine, up to 30 days in jail, or both, with potential license and registration consequences. Your driver’s license may also be suspended upon conviction; electronic proof of insurance is accepted (see SDCL 32-35-113 and 32-35-113.1). For agency resources, consult the South Dakota Department of Public Safety Motor Vehicle Division, 

Car Insurance Add-Ons That May Further Protect You 

To save money on your auto insurance, several add-ons are recommended for drivers in South Dakota. Some may not be available to all drivers, and some car insurance companies may not offer all types of additional coverage.  Common options include rental reimbursement, roadside assistance, loan/lease gap and others; availability and pricing vary by carrier and state (see NAIC consumer guide).

• Comprehensive insurance: Covers non-collision-related damages to your vehicle, like theft and vandalism.  
• Collision: Covers the cost to repair any damage to your vehicle when in an accident. 
• Medical payments: Up to the limits in your policy, this coverage will pay for your medical costs if you’ve been in an accident. 
• Rental reimbursement: If you need a rental car when your vehicle is being repaired after an accident, this coverage has your back.
• Gap insurance: Covers the difference between the current value of your car and the amount you still owe on your vehicle. 
• Towing and labor. If your vehicle is not drivable after an accident and needs to be towed, this coverage will kick in.
• Customized equipment. Covers vehicle add-ons like new wheels or a trailer hitch that’s damaged.

South Dakota Minimum Insurance Requirements

If you want to drive in South Dakota, you’ll need to meet these state minimum requirements on your auto insurance policy. Even though the state doesn’t require drivers to carry full coverage insurance on their vehicles, if you finance your car, most financial institutions will require you to have comprehensive insurance.  South Dakota also requires Uninsured and Underinsured Motorist bodily injury coverage at least equal to 25/50, and proof of insurance may be shown electronically (see South Dakota Division of Insurance).

Minimum liability required in the state of South Dakota is divided as follows:

• $25,000 for bodily injury or death per person.
• $50,000 for bodily injury or death to multiple people in an accident.
• $25,000 for property damage.

To meet South Dakota state insurance laws, you’ll need to purchase and maintain a policy that includes:

• Liability coverage.
• Uninsured and underinsured motorist coverage.

You’ll also need to have proof of insurance in your vehicle at all times.   Electronic proof is acceptable under state law.

South Dakota Car Insurance FAQs 

Methodology

Reviews.com reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers.  We also reference recent regional customer satisfaction findings from J.D. Power.

As for average pricing, historic figures shown in on-page tables reflect earlier Bankrate.com datasets. For current context, we considered 2025 state benchmarks from Bankrate and trend analyses from The Zebra, noting that premiums have generally increased since 2021. For full coverage, the details commonly used in benchmarking include the following:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a late-model sedan, commute five days a week and drive roughly 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes; your quotes may differ materially by profile and location. For the latest statewide averages, see Bankrate’s cost guide.

Keep Reading

Car Insurance Buyer’s Guide

The Best Companies for Bundling Home and Auto Insurance in 2025

How to Switch Car Insurance Companies