South Dakota’s low population density keeps its average auto insurance premium at a mere $767 per year— that’s one of the lowest rates in the nation. But you may not find it so affordable if you have a less-than-perfect driving record.
The good news is, it’s still possible to find a great deal on your insurance. State Farm ranks highest for its low cost, well-rounded discounts, and customer service ratings. We also provide a full rundown of four more competitive auto insurance providers in South Dakota.
The 5 Best Car Insurance Companies in South Dakota
- State Farm
- American Family Insurance
|State Farm||American Family||Farmers||USAA||Progressive|
|Our review||Our review||Our review||Our review||Our review|
|A.M. Best Financial Strength Rating||A++||A||A||A++||A+|
|J.D. Power 2019 Overall Customer Satisfaction Score||4/5||N/A||3/5||5/5||3/5|
|Avg. Annual Premium||$617||$655||$677||$582||$726|
|Compare rates||Compare rates||Compare rates||Compare rates|| Compare rates|
Quadrant car insurance rate data as of 07/01/2019.
- Competitive annual premium
- Strong customer service ratings
- Limited discount programs
State Farm makes an appearance in our roundup of the best nationwide providers, and for good reason. Not only does it write the most auto policies in South Dakota, it also boasts one of the highest ratings for financial stability. With an “A++” from A.M. Best, you can rest assured State Farm will be able to pay out any claim.
State Farm has been serving in the insurance industry since 1922 and has earned an A+ rating from the Better Business Bureau. Discounts for South Dakota drivers are respectable, but a tad slimmer than other companies on this list.
While you’ll find several discounts for vehicle safety and an option to enroll in its Drive Safe and Save program, you won’t find discounts for seniors, being a loyal customer, or owning a new car.
The average annual premium, however, is just $617, which is one of the lowest in the state, so you might not save by going to other competitors even if their advertised discounts are more robust.
American Family Insurance
- Supplemental coverage available
- 24/7 customer service via online chat and phone
- Lower financial rating compared to others
- No rideshare coverage for Uber or Lyft drivers
American Family is the third largest auto insurer in South Dakota, and boasts strong ratings for customer experience. Consumer Reports gives it an 89/100; however, in terms of financial stability, it’s slightly lower than our other contenders, with an “A” from A.M. Best.
It’s worth noting that American Family offers the most discounts out of all our contenders, too. From safe driving, safety equipment, and age-based discounts, to savings for driving under 7,500 miles in a year, AmFam makes saving money on your policy pretty reachable. One of the most competitive options in terms of price, the average annual premium in South Dakota is $655.
- Low average premiums
- Extensive discount programs
- Room to improve for financial stability
Farmers Insurance boasts solid ratings in the customer service realm, with an 89/100 on Consumer Reports and a three out of five Power Circles from J.D. Power’s regional assessment. In terms of financial stability, Farmers holds a strong — but not exceptional — “A” rating from A.M. Best.
Still, the company’s average annual premium in South Dakota is fairly competitive at $677 — or just over $55 per month. Farmers offers a wide variety of discounts, including one for teen drivers, being employed or retired from an approved business, or driving a car with eco-friendly fuel options.
- Lowest average premium
- Highly rated customer service
- Available only to military members
USAA is the the most highly-regarded insurer on this list. With an “A++” from A.M. Best, there’s no need to worry about USAA’s ability to pay out on claims. USAA takes home gold for customer service, too: J.D. Power gives it 906/1,000 in the region and a rare five out of five Power Circles. Plus, the average annual premium for the state is the lowest at $582.
So what’s the catch? USAA is only available to current or former military members and their families. If you have served, are currently serving, or have close relatives in the military, we highly suggest getting a quote from USAA.
Along with stellar customer service ratings, the company offers a robust list of coverage and discounts, and is known for saving military members money on their car insurance.
- Multiple discounts available
- Coverage for riskier drivers
- Most expensive average premium on the list
- Average customer service ratings
Progressive is another solid option for South Dakota residents. It fares well in the financial stability realm, with an “A+” from A.M. Best. It also earns an 87/100 from Consumer Reports — which is about average — with “excellent” ratings for its timely claims payments. That said, Progressive ranks below average with J.D. Power, scoring just two out of five Power Circles.
Ratings aside, Progressive stands out for a couple reasons. First for its generous discount options — including savings for getting an online quote, signing online, paying in full, and “continuous insurance.” Progressive is also known for being friendly towards “riskier” drivers, and even offers discounts for teens (18 years or younger). That may explain their higher average annual premium in South Dakota, which is $726.
The Cheapest Car Insurance Companies In South Dakota
|Car Insurance Companies||Average Annual Premium|
|American Family Insurance||$655|
|Farmers Mutual of Nebraska||$677|
|Farm Bureau Insurance||$775|
|North Star Mutual||$852|
Car Insurance by Credit Rating
|Credit Rating Tier||Average Annual Premium|
|Average Across Credit Rating Tiers||$987|
Quadrant car insurance rate data as of 07/01/2019.
These rates are a sample set meant only for general comparison. Your own premium will vary. Learn how we tested rates for the cheapest car insurance companies below.
Top 3 Cheapest Car Insurance Companies in South Dakota
• USAA – $582
• State Farm – $617
• American Family Insurance – $655
Top 3 Most Expensive Car Insurance Companies in South Dakota
• Western National Mutual – $1,287
• Auto-Owners Insurance – $1,268
• Allstate – $1,094
USAA gives South Dakota drivers affordable annual premiums averaging under $600. Alternatively, Western National Mutual’s average cost is more than double that amount. When collecting car insurance quotes, however, remember that your own offer will vary based on your personal background and information.
Guide to South Dakota Car Insurance
South Dakota Minimum Liability
“Liability” means “responsibility” when it comes to auto insurance coverage. South Dakota, like most other states, requires that drivers carry a minimum amount of insurance for both bodily injury and property damage. If an incident occurs and you’re found at-fault, your insurer pays out these damages on your behalf.
The minimum liability is the lowest amount of coverage you can legally have as part of your policy. Here are the minimum liabilities in South Dakota:
- $25,000 bodily injury coverage per person
- $50,000 bodily injury coverage per accident
- $25,000 property damage coverage per accident
Consider purchasing more than minimum coverage
Purchasing just the minimum liability coverage leaves you at risk of paying out of pocket for incidents that exceed $25,000 in property damages. The safest bet is to purchase the highest amount of auto insurance you can reasonably afford.
How We Found the Best South Dakota Car Insurance Companies
Starting with some of the largest auto insurers in South Dakota, we looked at affordability and reputation to come up with the best options available.
We worked with Quadrant Information Services to provide data on auto insurance rates by company and credit score. Quadrant makes this information available using rate data insurers are required to file with state Departments of Insurance. Rates are based on sample profiles created by Reviews.com for comparative purposes.
South Dakota Car Insurance Companies FAQ
How much auto insurance coverage do I need?
In addition to meeting South Dakota’s minimum liability requirements, you might want to add comprehensive coverage to your policy, which covers yourself in addition to someone involved in an at-fault accident. If you have cash on hand to help with unexpected repairs, the higher premium might not be worth it. But if you don’t have a lump sum to help yourself in case of a major accident, consider the additional coverage.
How can I know if I’m getting the best deal on my car insurance?
Compare personalized quotes from multiple auto insurance companies. Also, research the discounts available at each one and choose those that have discount programs most relevant to you.