South Dakota Car Insurance Requirements

In South Dakota, as in every state, car insurance is sure to play a big part in any claim brought after a traffic accident. And South Dakota, like most states, requires vehicle owners to purchase minimum amounts of liability insurance coverage. Let's dive into the details of South Dakota's auto insurance rules, your insurance claim options after a car accident, and the kinds of penalties you can expect if you drive without insurance in the state.

Is South Dakota a "No-Fault" Car Insurance State?

No. South Dakota follows a traditional fault-based system when it comes to financial responsibility for losses stemming from a car accident: including injury-related medical bills, lost income, vehicle damage, and "pain and suffering."

This means that the person who was at fault for causing the car accident is also responsible for the costs of any resulting harm (from a practical standpoint, the at-fault driver's insurance carrier will absorb these losses, up to policy limits).

In South Dakota, a person who suffers any kind of injury or damage due to an auto accident usually can proceed in one of three ways:

• by filing a claim with their own insurance company, under optional types of car insurance like "medical payments" coverage or "collision coverage"; we'll talk more about these coverage options later
• by filing a third-party car insurance claim directly with the at-fault driver's insurance company
• by filing a personal injury lawsuit in civil court against the at-fault driver, or

Note: In no-fault car insurance states, a claimant doesn't usually have this same range of options, but South Dakota drivers don't need to worry about no-fault after an in-state accident.

What Car Insurance Is Required In South Dakota?

South Dakota makes the purchase of liability car insurance coverage mandatory for vehicle owners. The required minimum amounts of coverage in South Dakota are:

• $25,000 liability coverage for bodily injury or death of one person in an accident caused by the owner/driver of the insured vehicle
• $50,000 liability coverage for total bodily injury or death liability in an accident caused by the owner/driver of the insured vehicle
• $25,000 liability coverage for property damage per accident caused by the owner/driver of the insured vehicle.

What Does Liability Car Insurance Cover In South Dakota?

Liability coverage pays the car accident-related medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits.

You can (and in some situations should) carry liability coverage above the minimum requirements, to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Once policy limits are exhausted, you're personally on the financial hook, so higher insurance limits can help protect your personal assets.

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Liability Car Insurance Never Covers Your Own Accident-Related Losses

Remember that liability coverage doesn't apply to your own injuries or vehicle damage after a South Dakota car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example:

• Medical payments car insurance coverage (optional in South Dakota) can help pay your car accident-related medical bills, often right away, regardless of who caused the crash. This coverage can be used by you if you're in an accident while driving, or if you're hit as a pedestrian. It can also be used by anyone who is injured in an accident while driving or riding in your vehicle Covered expenses include hospital, surgical, chiropractor, and dental expenses, according to the South Dakota Division of Insurance.
• Collision coverage can pay for repairs to (or replacement of) your damaged vehicle after a car accident, no matter who was at fault. (Note that while collision coverage is always optional under South Dakota law, it might be required under the terms of a vehicle lease or financing agreement, along with comprehensive coverage).

Is Uninsured Motorist Coverage Required In South Dakota?

Yes. South Dakota requires that uninsured motorist (UM) car insurance coverage be included in any policy, in an amount that matches the policyholder's chosen liability limits (although UM coverage is usually capped at $100,000 per person injured/$300,000 total injury coverage per accident in South Dakota).

This kind of coverage protects you and your passengers if you're in an accident caused by an driver who has no insurance, or if you're injured in a hit and run accident. Keep in mind that UM coverage will not apply to vehicle damage.

What Are the Penalties For Driving Without Insurance in South Dakota?

According to the South Dakota Department of Public Safety Motor Vehicle Division, a conviction for driving without proof of insurance is considered a "Class 2 Misdemeanor" punishable by 30 days in jail, a $100 fine, or both.

In addition, the offender's driver license will be suspended for at least 30 days, and for up to one year. The offender will also need to file proof of insurance (called an "SR-22" form) with the state for three years following reinstatement of driving privileges. Failure to file the SR-22 will result in suspension of vehicle registration, license plates, and driver's license.

That's on top of the financial hit you could take if you're in a car accident and you don't have car insurance.

What's Next After a South Dakota Car Accident?

If you've been involved in an accident, you might want to read more about South Dakota's car accident laws and your options for getting compensation for your losses. And for tips on when it might make sense to talk to a lawyer, learn how an attorney can help with your car accident case.