The state of South Dakota has made auto insurance mandatory. This is to ensure that a driver or motorist on the road has enough finances to pay for the damages in an accident if he is involved in any. This is in accordance with the financial responsibility laws. The state of South Dakota also follows what is known as the Tort system of laws. According to this system, if there has been an accident, a person has to be held responsible for the accident and he will pay for all the damages caused due to the accident.
This being the case, auto insurance must be bought by everyone. The minimum liability fixed by the state of South Dakota is an amount of twenty five thousand dollars per person injured in the accident. It also makes an amount of fifty thousand dollars for bodily injury in total mandatory. This can cover two individuals. It also makes an amount of twenty five thousand dollars mandatory for any property damage. Bodily injury covers any medical bills the person might incur due to the accidents. It also includes lost wages if any. Property damage covers any losses to the other person car. It will pay for replacements and repair. It will also cover costs for any damages where a building, lamp post or fence etc has been damaged.
However, this is just the minimum amount to be insured for. Obviously, many accidents will cost a lot more. The industry experts say that a hundred thousand dollars for bodily injury per person and three hundred thousand dollars will cover most of the accidents. These are really large sums of money we are talking about. However, auto insurance does not have to be very expensive. There are many discounts available that will help one reduce the premiums on their insurance.
The first thing would be to compare shop. Go to a lot of vendors and ask for quotes. Compare and see which vendor is offering the services you need at the best price. Good shopping does not mean buying everything the vendor says you should. You should choose the services you need very carefully. Once you have chosen the services, you should the right vendor who offers these services at cheap rates. If you are over fifty years of age, you could avail yourself a discount as you will be regarded as a very safe driver. Try and group insurances.
IF you have a health or a life insurance with some company, getting auto insurance from the same place will help you get a discount. If you have more than one car, you can get all of them insured at the same place. This is bound to get you a discount. Many auto insurance shops also offer good student discount. If there is a good student in your house with good grades, this will help you get a discount and serve as an incentive to keep those grades high. If you have had a very clean driving record, you can avail yourself a discount. If you are a safe driver, you are a much less risk and therefore can get a discount.