South Dakota Auto Insurance

The state of South Dakota is a Tort state.  This means that if the state declares an individual as the cause of an accident, the named person will be required to pay all the damages which result from the accident they caused.  This will include all medical bills and vehicle repairs.  For this reason, insurance companies may encourage you to purchase more than the minimum auto liability insurance required by the state of South Dakota.  If a car is financed, you will most likely be required to carry comprehensive and collision coverage on the vehicle.  Failure to do so in the state of South Dakota can be considered as a default of insurance coverage on your part.

Insurance companies in South Dakota do not have to cover members of your household if they are not listed on the policy.  You are also able to leave individuals off of your insurance policy.  These exclusions are legal.  Even though you do not have to list everyone on the policy, the company may request it.  If you do not comply with the company’s request, they can deny the claims on any persons not included on the policy.

In the state of South Dakota, the insurance company is allowed to check out your personal credit history when offering you insurance and setting your premium rates.  It may also be used to establish an insurance risk score.  They may also look at your driving record, age, and the area where you live.  Maintaining a good driving record and paying your bills on time may reduce your premiums.

The average insurance premium in South Dakota was about $554.00 as of 2006.  South Dakota was ranked as having the 49th highest premium average in the United States.  There are 20 state approved insurance companies doing business in the state of South Dakota.  The following companies may sell auto insurance in South Dakota:  Avera Property Insurance Incorporated, Dakota Truck Underwriters, De Smet Insurance Company of South Dakota, First Dakota Indemnity Company, Milbank Insurance Company, Missouri Valley Mutual Insurance Company, Northern Plains Insurance Company Incorporated, Northwest GF Mutual Insurance Company, Reliamax Insurance Company, SFM Select Insurance Company, Springhill Insurance Company Incorporated of South Dakota, Sun Surety Insurance Company, Universal Surety of America, Van Tol Surety Company Incorporated, Western Surety Company, Bohemian Farmers Mutual Insurance Company, and Farm Mutual Insurance Company.

Things that can help you reduce the cost of your insurance premiums include a clean driving record, the type of vehicle you choose to drive as well as the number of miles you drive per year.  The fewer miles you put on your vehicle each year, the lower your chances are of being involved in an accident.  The reduction in accident risk can translate into a reduction in premiums.  Furthermore, a clean driving record reduces your risk of an accident.  It will be more expensive to insure a luxury car or a sports car.  You should also keep in mind that insurance premiums will be higher on vehicles which are a high priority for thieves.  The cars that made the top 10 stolen vehicles in South Dakota are:

1. 1997 Ford F150
2. 1994 Chevrolet C/K 1500 Pickup (full size)
3. 1992 Ford Taurus
4. 1997 Chevrolet Cavalier
5. 1995 Pontiac Grand Am
6. 1997 Pontiac Grand Prix
7. 1997 Chevrolet Lumina
8. 1990 Dodge Caravan
9. 1995 Chevrolet Blazer
10. 1996 Oldsmobile Cutlass

Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums along with anti theft devices like an alarm system and global positioning systems.  Parking your car in a garage or secured area is another way to reduce your premiums.  Where you live will affect your insurance rates which can be affected by weather extremes, high theft risk, and high traffic patterns.  Don’t forget to maintain a good credit record as the insurance company looks at this to determine how likely you are to pay your premiums on time.  Prior accident claims will also be a red flag to insurance companies especially if there are several claims on your past record.  The amount of your deductible is also a key factor when determining insurance rates.  The higher your deductible is, the lower your insurance rates will be.