South Dakota Car Insurance Laws (2026)

The state of South Dakota operates under an at-fault system, meaning if you cause an accident in the state, you’ll be financially responsible for the other party’s injuries and property damage. But if another driver injures you or damages your car in an accident, you may not be able to recover full damages if your actions contributed even slightly to the crash.^[1]

Other than this rule, car insurance in South Dakota is relatively straightforward to navigate. But if authorities catch you driving without insurance, it’s a Class 2 misdemeanor.

Auto insurance requirements in South Dakota

South Dakota requires drivers to carry an auto insurance policy with at least 25/50/25 liability limits. These limits are the same as in neighboring North Dakota.^[2] Here’s a closer look at South Dakota’s car insurance requirements:^[3]

• Bodily injury liability coverage: Drivers need at least $25,000 per person and $50,000 per accident of this coverage. After an at-fault accident, bodily injury liability coverage helps pay for the other party’s medical bills.

• Property damage liability coverage: You’ll need at least $25,000 in property damage liability coverage. If you cause an accident, this helps pay to repair or replace the other driver’s vehicle.

• Uninsured and underinsured motorist coverage: South Dakota requires drivers to carry at least $25,000 per person and $50,000 per accident of this coverage. If an uninsured motorist causes an accident, this coverage can help pay for your medical expenses.

Drivers with significant cash resources who don’t want to carry an auto insurance policy have another option. You can provide a $50,000 bond to the South Dakota Motor Vehicle Division. But this form of self-insurance must remain on file permanently or until you obtain a car insurance policy.^[4]

Is state-minimum car insurance in South Dakota enough coverage?

For most drivers, South Dakota’s minimum car insurance requirements don’t offer enough financial protection. The average cost of a new car is more than $50,500, according to Kelley Blue Book. Causing an accident that totals someone’s brand-new vehicle could result in property damages well above the state’s $25,000 requirement.

Beyond liability insurance, here’s a look at the optional car insurance coverages you might need:

• Comprehensive coverage: Due to the state’s frequent tornadoes, this coverage is especially important for South Dakota drivers. After something other than a collision damages your vehicle, comprehensive coverage can help you pay for repairs or a replacement.

• Collision coverage: After you cause an accident, collision coverage can help you pay for repairs to your own vehicle. Accidents can happen to anyone, and 4% of South Dakota drivers have an at-fault accident on their driving record, according to Insurify data.

• Rideshare insurance: If you use your personal vehicle to offer rideshare services, rideshare insurance is critical.

• Medical payments coverage (MedPay): If you’re injured in a car accident, MedPay can help you pay for medical costs, even if you’re the at-fault driver. More than 10% of South Dakotans don’t have health insurance, according to the U.S. Census Bureau.

As you consider your coverage options, compare auto insurance rates and seek out car insurance discounts to help you find the most affordable premiums for your situation.

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Penalties for driving without insurance in South Dakota

If you’re caught driving without insurance in South Dakota, it’s a serious offense, and it’s considered a Class 2 misdemeanor. The consequences vary based on the situation. The table below breaks down the penalties you can expect to face:^[5]

Fines	Up to $500
Imprisonment	Up to 30 days
License suspension	Up to one year; reinstatement fee of $50
Registration suspension	Until you obtain proof of insurance

South Dakota’s slight-negligence contributory fault rule

South Dakota law includes a slight-negligence contributory fault rule. Under South Dakota Codified Laws Section 20-9-2, injured drivers can recover damages only when their own negligence was slight compared to the other driver’s negligence.

If an injured driver acted negligently, the financial award may be reduced in proportion to their own contributory negligence. And if their negligence isn’t considered “slight” compared to the other party, they can’t recover damages at all.

When a case like this goes to trial, the jury isn’t asked to determine the percentage of each driver’s fault. Instead, the jury is asked only to determine whether or not an injured driver’s contributory negligence was slight.

South Dakota insurance laws FAQs