So Just How Cheap Is South Dakota Car Insurance?
South Dakota has a lot of advantages over other states, especially when it comes to a low cost of living. One thing that helps people save money is low car insurance.
A new study by the personal finance website WalletHub South Dakota is the second cheapest state to insure a vehicle.
This isn't news for anyone who has moved to South Dakota from another state. In a world where inflation is making everything go up in price, I'm sure those people were pleasantly surprised to find out that their car insurance actually went down.
Here's a personal South Dakota insurance saving story. In 2017, my wife moved to Sioux Falls from a small town in Michigan, the state with the highest average car insurance in the US. There she was paying $150 per month for full coverage on a 2013 Hyundai Elantra and this is with a clean driving record. When she transferred the car to South Dakota, her insurance went down to $65 per month for full coverage.
WalletHub says the reason South Dakota has a low car insurance rates is 51% of the population lives in rural areas. Lower traffic and fewer accidents and claims leading to lower rates.
Another reason is South Dakota has a very low percentage of uninsured drivers. On the other hand, Michigan has a high number of uninsured drivers. Estimates say around 20% of drivers are uninsured. That number spikes to around 60% for cities like Detroit.
Annual average car insurance rates for basic liability coverage for states in the upper midwest look like this:
- South Dakota - $326
- Wyoming -$274 (the lowest average in the US)
- Iowa - $326
- North Dakota -$370
- Nebraska -$427
- Minnesota -$758
However, not everyone in South Dakota pays less.
- 16-year-olds pay 449% more than 55-year olds.
- Drivers with a DUI pay 90% than someone with a clean record.
- People with full coverage insurance, comprehensive and collision insurance, pay 427% more than just basic liability at the state minimum.
See the Must-Drive Roads in Every State