South Dakota Auto Insurance Requirements Explained

What Are the Minimum Car Insurance Requirements in South Dakota?

South Dakota's car insurance requirements start with minimum liability coverage of 25/50/25, set by SDCL 32-35-70. Every policy must also include uninsured and underinsured motorist coverage, explained in the next section.

Required coverage	Minimum coverage limits
Bodily injury liability coverage	$25,000 per person / $50,000 per accident
Property damage liability coverage	$25,000 per accident
Uninsured motorist (UM) coverage	Equal to your bodily injury limits
Underinsured motorist (UIM) coverage	Equal to your bodily injury limits

The South Dakota Division of Insurance explains the numbers this way: the first 25 is the most your policy pays for one injured person, the 50 is the most it pays for everyone injured in one auto accident, and the last 25 is the most it pays for property damage.

Liability coverage pays other people when you cause a crash. It does not pay for your own injuries or your own car. The limits apply to each insured vehicle and cover crashes anywhere in the United States or Canada.

If the numbers on your car insurance policy are hard to read, see how a car insurance policy works.

Uninsured & Underinsured Motorist Coverage

Every auto policy issued in South Dakota must include uninsured motorist coverage and underinsured motorist coverage, under SDCL 58-11-9 and 58-11-9.4. Both match your bodily injury liability limits. The required amount tops out at $100,000 per person / $300,000 per accident, though you can ask your insurer for more.

In 2023, an estimated 9.4% of South Dakota motorists were uninsured, the ninth-lowest rate in the country, compared with 15.4% nationwide, according to Insurance Research Council data published by Triple-I. That is still about 1 in 11 South Dakotans behind the wheel.

What uninsured motorist coverage pays

According to the Division of Insurance, uninsured motorist coverage pays for injuries to you, family members who live with you, and passengers in your car when an uninsured or hit-and-run driver causes the crash. It does not pay for vehicle damage. Repairs to your own vehicle fall under collision coverage, if you carry it.

If the driver who hit you left the scene, see how hit-and-run claims work.

What underinsured motorist coverage pays

Underinsured motorist coverage applies when the at-fault driver has insurance, but not enough to cover your injuries. Under SDCL 58-11-9.5, your policy pays the difference between your underinsured limit and what the other driver's insurer paid.

Hypothetical example: The at-fault driver carries $25,000 per person, and you carry $100,000 in underinsured motorist coverage. Your medical costs reach $120,000. The other driver's insurer pays $25,000, and your policy pays up to 75,000(100,000 minus $25,000). The remaining $20,000 is not covered by either policy.

Good to know: You generally can't add your uninsured and underinsured limits together for one crash. The exception is a crash where two separate drivers are liable, one uninsured and one underinsured (SDCL 58-11-9.7).

Other Ways to Meet South Dakota Auto Insurance Requirements

South Dakota requires every driver or owner of a motor vehicle to keep "financial responsibility" in force at all times. Under SDCL 32-35-113, there are four ways to do that:

• Liability insurance: An owner's policy that meets the 25/50/25 minimums, which is how most drivers comply
• Surety bond: A bond filed under SDCL 32-35-83
• Cash or securities deposit: A certificate of deposit of money or securities in the amount of $50,000
• Self-insurance: A certificate of self-insurance, backed by an agreement to pay what an insurer would have paid

Whichever method you use, a police officer can ask for proof of financial responsibility when you get a traffic citation or are involved in a reportable crash (SDCL 32-35-116).

Penalties for Driving Without Insurance in South Dakota

Driving without insurance in South Dakota can lead to a fine, jail time, and a license suspension. Failing to maintain financial responsibility is a Class 2 misdemeanor, and a conviction carries these penalties:

• Fine or jail: Up to 30 days in county jail, a $500 fine, or both (SDCL 22-6-2)
• License suspension: A judge must suspend your driver's license for at least 30 days and up to 1 year (SDCL 32-35-121)
• Proof for the future: The South Dakota Department of Public Safety won't renew your driving privileges until you file, and keep in force, a future financial responsibility filing (SDCL 32-35-43.1), typically the SR-22 form, which must list every vehicle registered in your name

Giving an officer or a court false proof of insurance, including an expired policy, is a more serious Class 1 misdemeanor under SDCL 32-35-120.

Good to know: If you had insurance but couldn't show it when you were cited, you can bring or mail written proof to the magistrate named on the citation. If the proof shows you were insured at the time, the charge is dismissed (SDCL 32-35-117).

If you were in a crash while your coverage had lapsed, see what happens after a crash during an insurance lapse.

Has South Dakota Raised Its Minimum Coverage?

No. South Dakota's minimum limits are still 25/50/25. In January 2026, House Bill 1059 proposed raising the bodily injury minimums to $50,000 per person / $100,000 per accident.

On January 22, 2026, the House Transportation Committee voted 10 to 0 to defer the bill to the 41st legislative day, and it saw no further action (2026 bill status). Because a session can't run longer than 40 legislative days, that motion ends a bill for the year, according to the Legislative Research Council. The 25/50/25 minimums in SDCL 32-35-70 remain in effect.

What the Minimums Mean If You're Hurt in a Crash

If another driver causes your car accident, their bodily injury liability coverage pays for your injuries up to their policy limit. When that driver carries only the minimum, $25,000 may be the most their policy pays you, however high your medical bills run. Your own underinsured coverage and any optional coverage you carry may help with the rest. For a breakdown of each source, see who pays your bills after a crash.

The same limit applies to your car. If the at-fault driver's $25,000 in property damage coverage runs out, the rest of your repair or replacement cost goes uncovered unless you have your own coverage. When an insurer declares a car a total loss, it pays the vehicle's actual cash value, which the Division of Insurance defines as its market value on the day of the accident.

Carrying higher limits than the minimum is optional. Because your underinsured coverage matches your bodily injury limits, raising those limits also raises the underinsured coverage on your own policy.

How fault affects your insurance claim

South Dakota doesn't require personal injury protection (PIP), so it is not a no-fault state. Who caused the crash decides which insurer pays. The Division of Insurance sets a few ground rules for your insurance claim:

• Being at the scene isn't fault: Insurers can't apply comparative negligence (also called comparative fault) or contributory negligence to your claim just because you were at the scene
• Partial fault can reduce payment: If you were partly at fault, the insurer may reduce or deny payment depending on your share of fault
• You control who is on the check: An insurer can name both you and the body shop on a check only if you don't object, though a lender with a lien on your car must be included

To get an estimate based on your own costs and losses, try the settlement calculator.

Optional Car Insurance Coverages in South Dakota

The required car insurance coverage protects other people and you against uninsured drivers. Optional car insurance coverages protect your own health and vehicle. The Division of Insurance describes the main types:

Coverage	What it pays for
Medical payments coverage (MedPay)	Necessary medical expenses and funeral costs from a crash, regardless of who was at fault, for you, family members, and passengers in your car, including when you're hit as a pedestrian
Collision coverage	Damage to your car from hitting another vehicle or object, or from rolling over
Comprehensive coverage	Damage from causes other than a collision, such as theft, fire, hail, flooding, vandalism, hitting an animal, or broken glass
Towing and labor	Towing and on-the-spot repair costs, often sold as roadside assistance coverage
Rental reimbursement	A rental car while yours is being repaired after a covered loss

"Full coverage" isn't a legal term. It usually means liability plus collision and comprehensive. If you lease or finance your car, check your agreement, since it may require that additional coverage.

What to Do Next

Check the declarations page of your policy to confirm your liability limits meet 25/50/25 and that your uninsured and underinsured limits match them. After any crash, get the other driver's insurance information and notify your own insurer promptly, since auto policies typically require prompt notice of an accident.

If you were hurt in a car accident in South Dakota, the independent attorneys we connect you with can review your situation in a free consultation.

FAQ

Can I show my insurance card on my phone in South Dakota?

Yes. An electronic copy counts as written evidence of insurance if your insurer issues it as an official electronic document (SDCL 32-35-119). A digital ID card from your insurer's app on your mobile device can meet that standard.

What if insurance companies won't sell me a policy?

If no insurer will accept you, a local insurance agent (called a producer in South Dakota) can submit an application to the South Dakota Automobile Plan on your behalf, according to the Division of Insurance. The agent can explain how the application works and what an automobile policy through the plan includes.

Can my insurer cancel my auto insurance policy?

Your insurer must mail or deliver a cancellation notice at least 20 days before it takes effect. During a new policy's first 60 days, it can cancel for any reason. After 60 days, it can cancel only for nonpayment, a suspended or revoked license or registration for you or a driver in your household, or noncompliance with the 24/7 sobriety program.

Do I need liability coverage on a car I'm not driving?

South Dakota law lets a policy exclude liability coverage if you certify in writing that the vehicle won't be driven during the policy period (SDCL 32-35-70). This can apply to a stored or seasonal vehicle. If you drive it at any point during that period, you would be driving without the required coverage.

Is comprehensive or collision coverage mandatory in South Dakota?

No. South Dakota law requires only liability coverage and uninsured and underinsured motorist coverage (SDCL 32-35-70 and 58-11-9). Comprehensive and collision coverage are optional, though a lender or leasing company may require them if you finance or lease your car.

How do South Dakota's insurance requirements compare to other states?

South Dakota's 25/50/25 liability minimum is common, but some states set higher floors, such as 30/60/25 in Texas and 50/100/25 in Alaska and Maine, while Pennsylvania requires only 15/30/5, according to Triple-I. South Dakota is one of 20 states, plus the District of Columbia, that require uninsured or underinsured motorist coverage. Unlike no-fault states, it does not require personal injury protection (PIP).