South Dakota Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in South Dakota?

• South Dakota law requires that any person who licenses and/or operates a motor vehicle must show proof of financial responsibility. Most people satisfy South Dakota insurance law through the purchase of personal automobile insurance.
• South Dakota requires minimum liability insurance coverage in the amounts of $25,000 bodily injury liability for one injured person in an accident, $50,000 bodily injury liability total for all injured in an accident, $25,000 for property damage, and $25,000/$50,000 bodily injury for uninsured/underinsured motorist coverage (UM/UMI).
• In South Dakota, drivers can also satisfy the minimum auto insurance requirements though a Certificate of Deposit, or securities of at least $50,000 deposited with the State Treasurer’s office.
• All South Dakota motorists must carry proof of financial responsibility at all times in the form of a valid auto insurance card, certificate of deposit or certificate of self-insurance.
• Failure to provide proof of insurance upon request can result in a suspended license for 30 days up to a year, a fine of $100, and even jail time. If your license is suspended, you will have to pay a $50 reinstatement fee and application fees.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in South Dakota, your policy must include minimum liability coverage of:

$25,000 bodily injury liability for one injured person in an accident,
$50,000 bodily injury liability total for all injured in an accident,
$25,000 for property damage,
and
$25,000/$50,000 bodily injury uninsured/underinsured motorist coverage (UM/UMI)

What are the Rental Car Insurance Requirements?

In South Dakota, it is against the law to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required under South Dakota law. It is important to keep in mind that most South Dakota auto insurance policies have adequate coverage for car rentals. Most major credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is required in the state of South Dakota in the amount of $25,000/$50,000 for bodily injury.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In South Dakota, you may exclude drivers from coverage or your auto insurance company can write policy that excludes household members. These exclusions are listed in the exclusions section of the policy, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. Because any member of the household that may be excluded from the policy will not be covered under any circumstances under the policy, even in the case of emergencies, it is important to examine your auto insurance policy carefully before you signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If you fail to maintain continuous coverage on a vehicle throughout the period of operation, you have a lapse in coverage. This means that when your insurance lapses, you are driving without insurance. All South Dakota motorists must carry the minimum amounts of liability insurance at all times and proof of financial responsibility at all times in the form of a current, valid auto insurance card, certificate of deposit or certificate of self-insurance. If your insurance lapses, and you are caught driving without insurance your license may be suspended for 30 days up to a year, you may have to pay a fine of $100, and you could even got to jail. If your license is suspended, you will have to pay a $50 reinstatement fee and application fees.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In South Dakota, it is legal for auto insurers to use Personal Credit History to help determine which products they will offer as well as rates. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. Although South Dakota auto insurance companies frequently use personal credit history as an assessment tool, Personal Credit History is not the only tool South Dakota auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of South Dakota follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because South Dakota is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, South Dakota resident’s average insurance premium was approximately $554, the 49th most expensive in the nation. This was down 2.2% from the previous year. The national average was $817.

Sources

Insurance Information Institute

South Dakota Division of Insurance