Cheapest Car Insurance in South Dakota 2026

When should you carry minimum coverage vs. full coverage?

Full coverage car insurance is typically the better choice for many car owners because it provides much more financial protection than minimum coverage. Consider minimum coverage only if you have a low income, no assets to protect and need a low-cost car insurance option. 

If you cause an accident and only have the state-minimum car insurance requirements, you might find yourself underinsured. You’ll still be legally obligated to pay the remaining medical costs and property damage expenses to the injured parties. And if you can’t, you could face legal action.

Unlike a minimum-only policy, a full coverage policy includes coverage to pay to repair or replace your own vehicle through collision insurance and comprehensive coverage. These coverages payout if your vehicle is stolen or damaged by hail, falling tree branches, flooding and more.

For good financial protection, consider a full coverage policy with liability limits of 100/300/100. If you have high-value assets or a high income, an umbrella insurance policy adds extra liability coverage.

South Dakota car insurance discounts

Unlike many states, South Dakota doesn’t mandate that auto insurers provide any specific car insurance discounts. Nonetheless, insurers often offer a range of discounts to help you save money on car insurance, such as discounts for:

• Antitheft devices
• Automatic payments
• Defensive-driving courses
• Good students
• Buying multiple policies
• Insuring multiple cars
• Paperless billing
• Safe drivers

How to get the cheapest auto insurance rate

There are several ways to get the best car insurance in South Dakota at a reasonable price. 

• Increase your deductibles. Increasing your comprehensive and collision insurance deductibles—such as from $500 to $1,000—will lower your rates, but it also means you’ll receive less if you file a claim. 
• Drop collision and comprehensive coverages. The maximum amount collision and comprehensive coverages pay out after a claim is your car’s actual cash value, minus your deductible. If your car isn’t worth much, consider dropping collision insurance and comprehensive coverages. 
• Keep a clean driving record. Safe driving and maintaining a clean record are critical for avoiding rate hikes and keeping your car insurance costs low.
• Improve your credit. South Dakota car insurance companies can use your credit-based insurance score to help set rates. If your credit score significantly improved lately, you might be able to ask your insurer if it will rerun your credit report annually at renewal. Insurers in South Dakota can’t use your credit history as the only factor when setting rates and are not allowed to cancel, deny or nonrenew a policy based solely on your credit history.
• Check if your rates can go up before you enroll in usage-based insurance. Usage-based insurance tracks your driving behavior and assigns a driving score. These programs often come with an initial signup discount. If you receive a good driving score, you can save even more; however, some insurers raise rates if you get a poor driving score. 
• Compare quotes. Periodically comparing car insurance quotes will help ensure you get the best car insurance at a competitive rate.