What does it mean that South Dakota is a no-fault state?

No-fault insurance in South Dakota covers things like medical expenses, loss of income, funeral expenses, and survivors’ loss. In South Dakota, no-fault insurance may refer to the personal injury protection insurance (PIP) that no-fault states require drivers to carry and South Dakota drivers can get as optional coverage. Unlike in no-fault states, there are no limits on your ability to sue an at-fault driver after an accident in South Dakota.... read full answer

What PIP Insurance Covers in South Dakota

To learn more, check out WalletHub’s guide to personal injury protection insurance.

No, personal injury protection insurance is not required in South Dakota – it’s optional. South Dakota drivers who opt for PIP can get a minimum of $2,000 in medical coverage, with a death benefit of $10,000 and $60 per week in disability coverage.

If you want PIP coverage in South Dakota, you can choose to add it to your policy by contacting your insurance company or adjusting your account online. Below, we provide a quick overview of South Dakota’s PIP policies along with stats illustrating why the coverage is worthwhile.... read full answer

While PIP isn’t legally required in South Dakota, it’s still wise to have, if you can afford it. From 2008 through 2017 (the most recent data available), an average of 5,469 South Dakotans were injured in a car crash each year. In addition, car accidents can be extremely expensive, with fatal accidents in South Dakota alone costing an average of $177 million per year in recent years. Therefore, taking the step to acquire PIP insurance can be a smart decision and a wise investment.

Drivers in South Dakota need $25,000 of bodily injury liability insurance per person (up to $50,000 per accident) and $25,000 of property damage liability insurance. South Dakota also requires uninsured/underinsured motorist protection. UM/UIM replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits.... read full answer

Here’s How Much Car Insurance Drivers Need in South Dakota:

If you lease or finance your car, you may be required to carry coverage types that are not mandatory under South Dakota law. Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle was worth if it gets stolen or totaled.

Even if you’re not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in South Dakota to make sure you’re paying for the coverage you need.