South Dakota Minimum Auto Insurance Requirements (2024)

When choosing car insurance in the state, you first need to know what South Dakota’s minimum requirement for auto insurance is. South Dakota follows a traditional fault-based system regarding financial responsibility. So this means the person whose fault the accident was, is the person financially responsible for vehicle damages, lost income, and personal injuries. 

This article will tell you everything you need to know about the minimum requirements for car insurance in South Dakota and the recommended coverage.

What is the minimum car insurance requirement for South Dakota?

South Dakota requires its drivers to carry minimum coverage of auto insurance so that they have the financial means to comply with the requirements of the state.

According to the South Dakota Department of Labor & Regulation, it’s mandatory to have car insurance in the state, and there is a minimum level of coverage you must carry. Buying car insurance is how you comply with this requirement. 

The minimum requirement for car insurance in South Dakota includes:

• Liability coverage for bodily injuries
• Property damage liability
• Uninsured motorist coverage

The mandatory coverage required for South Dakota is broken down into these coverage levels in what is commonly called a 25/50/25 car insurance requirement.  

Understanding the Minimum Car Insurance Requirements 

The 25/50/25 is broken down into more detail below.

Bodily Injury Liability

This coverage protects you against someone making a claim against you for injuries when you were the one at fault for the accident. 

If you have 25/50/25 liability coverage, this means the first two numbers indicate what your car insurance policy will pay up to for the bodily injuries of one person. So, the first ’25’ means the policy will pay up to $25,000 for one single injured person. And the ’50’ stands for $50,000 as the most the policy will pay for all persons injured in a single accident. 

Property Damage Liability

This covers a claim made against you for any damages to another vehicle or property in an accident that is your fault. The third number in the 25/50/25 is the maximum amount the policy will pay for damages to the vehicle or property in one single accident.

Uninsured/Underinsured Motorist Coverage

Uninsured Motorist Coverage pays you, your family, and the vehicle occupants if you are hit and injured by an uninsured driver, underinsured, or a hit-and-run driver. However, it does not cover damages to your vehicle from an uninsured driver.

These are the standard auto insurance requirements in South Dakota for anyone operating a private passenger vehicle, but should you buy only standard auto insurance required by state law or more comprehensive auto insurance?

Minimum Requirement vs. Recommended Coverage

You should certainly be buying the minimum amount of auto insurance required by South Dakota to avoid any state fines or penalties. However, as a driver, you may feel that the minimum state requirement is insufficient to cover your needs. 

For example, the South Dakota state-required car insurance minimum doesn’t cover you for damages to your vehicle, so this may be a feature you want to be covered for. It also doesn’t cover you for personal injury protection, which is another helpful feature included in some auto insurance policies. 

You can search leading insurers and request online quotes for different levels of car insurance coverage that are within your budget. Purchasing car insurance that covers everything you need gives you peace of mind if you are ever in a car accident.

Final Thoughts on Minimum Requirement Car Insurance in South Dakota

Although South Dakota drivers are required to have a minimum level of car insurance by state law, drivers may want to consider getting comprehensive car insurance or full insurance that more closely suits their needs.

To buy South Dakota auto insurance, you can shop around for specific insurance policies that offer more comprehensive coverage than the state minimum requirement and find the best deal for your situation.