Cheap Car Insurance, South Dakota 2025: Find Affordable Rates

Looking for the cheapest South Dakota car insurance for 2025? Discover average rates, top providers like State Farm and GEICO, and practical tips to lower your premiums, save money, and stay protected.

Finding the cheapest car insurance in South Dakota can be challenging, given the many providers to choose from. However, by comparing rates and understanding the factors that affect premiums, you can save on auto insurance.

This guide provides a comprehensive look at the most affordable South Dakota auto insurance for 2025, along with tips to lower your costs.

Average Cost of Car Insurance in South Dakota

The average annual cost of car insurance in South Dakota varies based on factors such as age, driver profiles, and coverage levels. Here’s a breakdown of the average annual minimum and full coverage premiums in the state:

If you look at our guide on car insurance rates by state, the average South Dakota auto insurance rate is lower than the national average. However, it's significantly higher than the average auto insurance rates in North Dakota.

Note: Your individual rates may differ depending on factors such as age and driving history.

Cheapest Car Insurance Companies in South Dakota: Top 5

The following companies offer the cheapest South Dakota car insurance rates:

Cheapest Car Insurance in South Dakota: Comparison by Age Group

1. Teen Drivers

Because teens lack long-term driving experience, most providers deem them as a high insurance risk. This results in higher coverage limits. Male teen drivers sometimes face even higher rates, as they're more likely to engage in risky driving behavior. The different average rates are as follows:

Source: Cheapest Car Insurance in South Dakota for 2025 (US News)

The cheapest South Dakota auto insurance for male and female drivers aged at least 17 is FMNE Insurance at $2,349 and $2,362, respectively.

2. Young Adult Drivers

South Dakota drivers in this age group have lower auto insurance rates than teens, but higher than older, more experienced drivers. Different insurers provide coverage as follows, with Progressive leading as the cheapest insurer:

Source: Cheapest Car Insurance in South Dakota for 2025 (US News)

Based on the above, Progressive offers cheap rates at $1,166 for female drivers and $1,256 for male drivers aged 25. FMNE is the second-cheapest car insurance provider for this age group.

3. Adult Drivers

Adult drivers have extensive driving experience and a long driving history. As such, those with a good driving record enjoy some of the cheapest auto insurance rates South Dakota has to offer. The following companies provide cheap coverage as follows:

Source: Cheapest Car Insurance in South Dakota for 2025 (US News)

Multiple companies in South Dakota provide cheap coverage policies for this age group. Progressive offers the most affordable auto insurance, with an average annual cost of $896 for females and $910 for males. FMNE Insurance and USAA follow closely behind.

Note: USAA only serves military personnel and their families.

4. Senior Drivers

Older drivers in their 60s enjoy the cheapest car insurance coverage in South Dakota. However, while multiple insurers offer affordable rates, seniors with poor driving habits face higher coverage limits due to the increased liability risk. Here are the insurers with cheap rates:

Source: Cheapest Car Insurance in South Dakota for 2025 (US News)

Progressive still offers the cheapest rates for this age group, with an annual average of $719 for Females and $738 for males. Other than this insurer, the next best options are FMNE Insurance and USAA.

Cheap Auto Insurance, South Dakota: Comparison by Driving History

South Dakota car insurers can use your driving record to determine your insurance rates. Good drivers with no violations often pay less, while those with traffic violations or accident-related expenses pay more. Here's a detailed breakdown of different driver profiles:

1. Drivers With a Clean Record

Good drivers in South Dakota have access to cheap auto insurance coverage from the following companies:

Progressive offers the cheapest car insurance coverage at an average rate of $947 per year. Other affordable companies include FMNE and USAA, although the latter only covers military members and their families.

2. Drivers with 1 Speeding Ticket

One speeding ticket can increase your insurance costs by hundreds of dollars per year. The cheapest South Dakota car insurance companies for drivers with one speeding ticket include:

Both FMNE Insurance and Progressive offer competitive, affordable rates, with a difference of only $34 between them.

3. Drivers with 1 At-Fault Car Accident

FMNE Insurance has the cheapest coverage rates for South Dakota drivers with one at-fault accident on their record. They offer an average annual rate of $1,517. Other companies with cheap insurance for at-fault drivers line up as follows:

FMNE Insurance and Progressive still offer cheap auto insurance rates, where the difference between them is only $63

4. Drivers with 1 DUI

A DUI has the most impact on your car insurance rates in South Dakota. The cheapest companies in the state include:

Progressive is the cheapest car insurance provider in South Dakota for drivers with one DUI, at $1,241. The second best is FMNE Insurance, although it offers significantly higher premiums, almost double the rates provided by Progressive.

Cheap Car Insurance in South Dakota Based on Location

The table below highlights how much location influences your premium, even within a single state. The rates we've provided are based on a full coverage policy for a standard driver profile (a 40-year-old with a clean record):

As noted in the table above, car insurance in South Dakota generally follows the national trend, where urban areas like Sioux Falls and Rapid City have slightly higher average premiums than smaller towns due to increased traffic and crime rates.

However, the premium difference between most major cities and rural communities in the state is relatively small. The cost for full coverage ranges from about $1,688 in the cheapest cities to over $1,848 in the most expensive ones, demonstrating a narrower geographical price spread than most other states.

State Minimum Requirements for Car Insurance in South Dakota

South Dakota law requires all drivers to carry proof of financial responsibility, which is most commonly met by purchasing an auto insurance policy. Coverage is important because it helps pay for damages and injuries you cause to others in an at-fault accident. Here are the mandatory minimum requirements for car insurance in South Dakota:

Mandatory Minimum Coverage Required

The South Dakota Department of Labor and Regulation, Division of Insurance, mandates three specific types of coverage, often expressed in the three-number format of 25/50/25 for liability, and requires a similar minimum for Uninsured Motorist coverage. You need these minimum coverages:

Bodily Injury Liability: This coverage pays for the medical expenses, lost wages, and pain and suffering of the people you injure in an accident you cause. It pays:

• $25,000 for injury or death of one person per accident.
• $50,000 for injury or death of all persons per accident.

Property Damage Liability: This coverage pays for damage you cause to another person's property, typically their vehicle, but it can also include items such as a fence, mailbox, or building. It pays:

• $25,000 for property damage per accident.

Uninsured/Underinsured Motorist Bodily Injury (UM/UIM): This is also a mandatory coverage that protects you and your passengers if you're hit by a driver who has no insurance (uninsured) or whose insurance is not enough to cover your injuries (underinsured). South Dakota law requires this uninsured/underinsured motorist coverage at the same minimum limits as bodily injury liability insurance:

• $25,000 per person.
• $50,000 per accident.

Is Minimum Coverage Enough?

While the 25/50/25 policy meets the legal minimum required coverage, insurance professionals generally advise purchasing higher limits. This is because:

• The minimum coverage limits may not cover the full cost of a serious accident, leaving you personally responsible for any expenses above the policy limits.
• The average cost of a minimum-coverage policy in South Dakota is typically much lower than a full-coverage policy.

Important Optional Coverages

To protect yourself and your own vehicle, purchase the following additional coverages:

Factors Affecting Car Insurance Rates in South Dakota

The company you choose will affect your car insurance rates, as different insurers have different coverage policies. Besides that, other factors that affect your rates include:

1. Driving Record: Good drivers with clean records pay lower auto insurance premiums in South Dakota, while accidents or violations increase premiums.
2. Age and Gender: Younger drivers and males often pay higher premiums because insurers view them as higher risks.
3. Location: Rural areas often have lower rates than urban centers. Also, bad and unstable weather conditions can affect insurance, with harsher conditions leading to higher rates.
4. Vehicle Type: Cars with high safety ratings or anti-theft features may qualify for discounts.
5. Coverage Level: Minimum liability coverage is cheaper than full coverage.
6. Credit History: People with low credit scores often pay more than those with good credit.

Tips to Lower Your South Dakota Car Insurance Premiums

1. Compare Quotes: Shop around to find the best rates.
2. Bundle Policies: Combine auto insurance with home or renters insurance for discounts.
3. Maintain a Clean Driving Record: Avoid accidents and traffic violations.
4. Increase Your Deductible: Choose a higher deductible to lower your premiums, but ensure you can afford the costs.
5. Apply for Available Discounts: Many insurers offer discounts for safe driving or completing defensive driving courses.
6. Only Get the Required Coverages: If you have an older car, dropping comprehensive and collision coverage could save you money.

Frequently Asked Questions

What Is the Cheapest Car Insurance in South Dakota?

For a standard driver profile, Progressive and FMNE insurance are often among the cheapest. Your exact lowest rate depends on your personal details, so compare a few personalized quotes.

What Is the Average Car Insurance Cost in South Dakota?

Full coverage typically runs about $2,287 per year, while minimum liability insurance is usually around $375 per year.

How Can I Lower My Car Insurance Premium In South Dakota?

Shop around with at least three insurers, since prices can vary a lot for the same coverage. Bundling policies, improving your credit score, raising deductibles, and using discounts can also cut costs.

Do Bundles Really Save Money On South Dakota Car Insurance?

Yes. Bundling auto with home or renters insurance often saves about 10%–25%. The discount depends on the carrier and the policies you combine.

Does Credit Score Affect Car Insurance Rates in South Dakota?

Yes, insurers in South Dakota can use a credit-based insurance score. Better credit often leads to lower premiums.

Will a Higher Deductible Reduce My South Dakota Car Insurance Cost?

Usually, yes. Raising your deductible can lower your premium. Just make sure you can afford the higher out-of-pocket cost if you file a claim.

What Discounts Should I Ask About For South Dakota Car Insurance?

Ask about good driver, good student, multi-car, and telematics/safe-driver program discounts. Discounts vary by company, so it’s worth checking every time you quote.

Is it Illegal to Drive Without Car Insurance in South Dakota?

Yes, driving without the minimum coverage is illegal in South Dakota. This could result in fines, license suspension, jail time, and vehicle registration suspension.