How To Find The Most Affordable Car Insurance In South Dakota

Fran
Lucy Lazarony
July 27, 2020

In South Dakota, the average cost for a car insurance premium is $1,268, which is 11 percent less than the national average. People in South Dakota are doing alright on their car insurance but they could do even better. There are tips and strategies for saving money on car insurance. And we will get to them in a bit. First, let’s take a closer look at car insurance in South Dakota.

State Minimum Liability Requirements

If you ever cause a car crash, liability insurance pays for other people’s injuries and property damage, up to your liability limit. Each state has minimum liability requirements for the drivers in their state.

In South Dakota, the minimum liability requirements are $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $25,000 property damage liability coverage per accident.

This minimum coverage costs around $307 per year.

Uninsured Motorist Coverage

Uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance. In South Dakota, uninsured motorist coverage is required on all policies. The minimum coverage is $25,000 bodily injury per person and $50,000 bodily injury per accident.

South Dakota Is an At-Fault State

When it comes to insurance, South Dakota is an at-fault state. This means South Dakota drivers are responsible for any damage they cause to another vehicle. An insurance adjuster decides who is at fault in an accident.

A More Comprehensive Policy Costs More

In South Dakota, a more comprehensive policy with collision insurance and comprehensive insurance with $1,000 deductibles would cost about $1,027 per year.

Collision insurance coverage is coverage that helps to replace or repair your car if it has been damaged in an accident with another vehicle or object such as a tree or a fence. Comprehensive insurance covers events that aren’t covered by collision coverage. These events include theft, fire, vandalism, and damages from weather such as a windstorm, a hailstorm, a tornado, and a hurricane.

If you have a loan on your car, your lender may require that you carry both collision coverage and comprehensive coverage.

A deductible is an amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Both collision coverage and comprehensive coverage require deductibles.

Choosing a high deductible is one way to lower your auto insurance premium.

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Cheapest And Most Expensive Cities

In South Dakota, the city with the cheapest car insurance is Watertown. The city with the most expensive car insurance is Pine Ridge.

How to Save Money on Car Insurance

Ready to save some money on car insurance? These tips will show you how.

Be a Married Motorist. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married motorists pay less in car insurance than singles. In South Dakota, married motorists save $114 per year on car insurance. That’s a nice saving.

Put Safety First. If you are a safe and responsible driver who follows the rules of the road you will save money on your car insurance. In South Dakota, a driver without a recent, at-fault accident saves 33 percent on car insurance premiums. But break a few rules and those premiums head up. Premiums increase 33 percent after a DUI, 33 percent after an at-fault accident and 15 percent after a speeding ticket. What does that mean in dollars and cents?

In South Dakota, a first, minor, at-fault accident costs roughly $645 per year. A DUI will increase your yearly auto insurance premium by around $660. So be a safe and responsible driver and follow the rules of the road. Been a good driver? Be sure to ask for a good driver discount. You’ve earned it with your driving record out on the road.

Maintain Excellent Credit. Insurance companies have been using consumer credit data to assign risk pools and set rates since the mid-1990s. Drivers with excellent credit get the best insurance rates. And drivers with poor or no credit pay much more for car insurance. In South Dakota, a driver with excellent credit saves about $1,251 per year on car insurance, compared with a driver who has bad credit. Need to boost your credit score? Get current on all past-due accounts, pay down debt and avoid taking on new debt. Get in the habit of paying your credit bills on-time. This will help you build up a positive payment history, which is good for your credit score.

Bundle Your Policy. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money.

Pay More, Less Often. Rather than paying monthly auto insurance payments, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Get A Multi-Car Discount. Insure more than one car with the same auto insurance company and save with a multi-car discount.

Review Car Features. Having certain anti-theft and safety features on your car will lower your car insurance. So be sure to check with your insurance company about your car’s features. You may be due a discount.

Research Memberships. Members of some professional organizations and affiliates get discounts on car insurance. So review your membership information. Are you eligible for a discount on your car insurance?

Drop Coverages On Older Cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer.

Be a Female Driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Check for Discounts. A good driver discount already has been mentioned. There are discounts for students and veterans as well. So be sure to reach out to your auto insurance company if you qualify.

Choose a High Deductible. As mentioned earlier, choosing a high deductible is one way to lower your auto insurance premium. Just be sure to put the deductible amount in a small emergency fund. This way the money will be there should you need to file an insurance claim.

Maintain Coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save money.

Keep Mileage Low. If you are a heavy commuter that racks up the miles you will pay more for your car insurance. If you are a low-mileage driver, you will pay much less for your car insurance. So drive less and pay less for your car insurance.

Age Makes a Difference. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for car insurance. Drivers of the ages in-between pay less.

Pick Your Neighborhood Carefully. If you live in a neighborhood with high accident claims and auto theft, you will pay more for your auto insurance. If you live in a neighborhood with low accident claims and low crime, you will pay less for your insurance. So pick a safe neighborhood and save money on your car insurance.

Be a Homeowner. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your home and enjoy the savings on your auto insurance premium.

Shop Around. One of the best ways to save money on auto insurance is to shop around. You’ll want to get insurance quotes from several different insurance companies. SmartFinancial makes this easy to do. Just input the type of insurance you are looking for plus a zip code to get started. Next, answer a few, quick questions and you’ll be comparing auto insurance rates in South Dakota in no time.

SmartFinancial has access to more than 200 insurance companies so you’re bound to find the insurance coverage and price you are looking for. So shop smart for auto insurance and drive safely along the roadways of South Dakota.

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