South Dakota Auto Insurance Basics


South Dakota is the seventeenth largest state in the United States of America. It was named after the Lakota and Dakota Sioux American Indian tribes that used to rule the region. It joined the Union on November second, 1889. The capital city is Pierre while the largest city is Sioux Falls. There are eight hundred and four thousand one hundred and ninety four people in this state. It is ranked the forty sixth most populous state in the Untied States.

Every state writes its own set of rules and regulations. These have to be followed at any cost and must not be violated or broken. Every rule is written to ensure the safety and well being of the citizens. There are many rules written ensuring the safety of the motorists or drivers on the roads. One such rule concerns the auto insurance policy of the state of South Dakota. Like most of the other states, South Dakota has made auto insurance mandatory. Auto insurance is proof that a person who is driving has enough finances to ensure he can take the financial responsibility of an accident, if he were to cause one. South Dakota follows the tort system of rules. According to this system, a person has to be found responsible for the accident and this person along with his insurance company will pay for all the damages caused.

The state of South Dakota has fixed the minimum amount of insurance a person must carry. This is known as the minimum liability. The minimum liability in the state of South Dakota is of the form of 25/50/25. This means that minimum liability for bodily injury per person in an accident has to be twenty five thousand dollars. The total minimum liability has to be fifty thousand dollars in total covering two people. The minimum liability for property damage would be twenty five thousand dollars. Bodily Injury would cover any medical costs incurred by the person in the damage. It would also cover lost wages, if any. Property damage covers any costs incurred due damage to property. This would be damage to the car including its repair and replacement, if any. It would also cover any damages caused to buildings, lamp posts, fences and other such material damage.

Apart from minimum liability there are other forms of insurance as well. This might include uninsured motorist’s insurance coverage and underinsured motorist’s coverage. This will cover all the costs incurred by you, in case you are involved in an accident with a person who has not got insurance at all or does not have enough insurance coverage. This is a popular option in states with a large number of uninsured drivers and a few have even made it mandatory. Another kind of insurance coverage would be physical damage. This includes collision and comprehensive damage insurance coverage. Collision would cover the costs incurred by your car if you are in an accident. It will cover all the costs including any repair and even replacement. Some even cover your lost wages. Comprehensive damage on the other hand covers any damages incurred when your car is not in an accident such hail, rain or snow or even vandalism and theft.