South Dakota Auto Insurance

South Dakota uses a Tort insurance system. If you are found at fault in a car accident, you and your insurance company are responsible with covering everyone’s property damage bills, as well as all necessary medical expenses.

Minimum Liability Requirements in South Dakota

As of April 2026, South Dakota requires drivers to carry minimum liability coverage of 25/50/25 — at least $25,000 in bodily injury liability per injured person, up to $50,000 per accident, and $25,000 in property damage liability. The state also requires uninsured/underinsured motorist coverage.

Source: CarInsurance.com, "US State Minimum Liability Car Insurance Requirements," updated April 15, 2026.

Average Car Insurance Premiums in South Dakota

Drivers in South Dakota pay an average of $2,020 a year for full-coverage car insurance — 31% below the national average of $2,922 a year.

Source: Experian, "Car Insurance Average Costs by State," published September 9, 2026.

Using a phone while driving

There are no current restrictions on the use of cellphones from behind the wheel. Should the Dakota House Bill 1178 pass, text-based communications will be prohibited while operating a vehicle.

Teenage driving regulations in South Dakota

The state of South Dakota uses a Graduated Driver Licensing (GDL) system for all aspiring drivers of at least 14 years old. The concept is meant to help future drivers gain hands-on experience with operating a vehicle on public roads while still keeping the incidence of high-risk situations down to a bare minimum. Teenagers with provisional limits have to face certain restrictions:

• they must be accompanied at all times by a licensed driver of at least 21 years old;
• when driving at night, between 10 pm and 6 am, they must be supervised by a parent or legal guardian.

Violating these restrictions may result in delay of licensing or total suspension of the driving privileges until the teen’s 18th birthday.

Penalties for driving uninsured in South Dakota

If you are caught without insurance or underinsured in South Dakota, you will, at first, be fined not less than $150. If you get involved in an accident, whether or not you were at fault, you will also get 14 points against your driver’s license, which will lead to the suspension of your license for 30 days up to one whole year.

Since driving without insurance is a criminal offense, you will also be sent to court. You will be facing jail time of 30 days, an extra fine of $100 or both.

Once all penalties are over, you will be required to submit proof of financial responsibility in order to have your driving privileges reinstated. The court will have you file a SR-22 certificate for three years.

AutoInsuranceQuery editorial team. Last reviewed: September 16, 2026.