South Dakota – Factors that Affect Auto Insurance Rates


The state of South Dakota similar to many other states has made auto insurance mandatory. This state follows the tort system of rules. According to the tort system, in case of an accident, a person ahs to be found responsible and should pay for all the damages cause during the accident. Thus, if a person is found driving, he should have enough proof of insurance to pay for the damages that might be caused if he is in an accident.  This is also in accordance with the financial responsibility laws of the country.

Every state will have fixed a minimum amount of insurance made mandatory. This is known as minimum liability. The minimum liability fixed for the sate of South Dakota is of the form 25/50/25. There is a minimum of twenty five thousand dollars for bodily injury per person injured in the accident. There is also a total of fifty thousand dollars in total for the accident covering two people. It also covers any property damage worth twenty five thousand dollars. This includes any damage caused to buildings, lamp posts fences etc. Bodily injury covers any damage caused to the person and will cover all medical costs. It will also cover any loss of wages.

There are many factors that affect the rate of insurance. This article tries to enlist a few important points that will help you lower you insurance rates. Your age plays a huge role. Motorists of age less than twenty five years are considered to be very high risk. They are statistically known to be rash drivers. Hence, they will be charged high rates. However, people over twenty five are supposed to be very good drivers and are low risk. Therefore, they are charged low rates and premiums.

If you are over fifty years of age, you are a very safe driver and will be charged very low premiums. You gender plays an important role too. Statistics have shown that women are safer drivers and therefore, have lower premiums and rates. The location of your house will play a huge role as well. Some people stay in rural locations with less numbers of people and cars. Therefore, there will be lesser number of cars on the road and lesser number of accidents. Therefore, a person living in rural areas are low risk and get very low rates. However, people living in the centre of the city are always in the midst of heavy traffic.

There is a very high chance that they might be involved in an accident. Therefore, the rates will be much higher. If your area has a crime rate, there is a high risk of your car being stolen. Therefore, you are high risk and must pay high premiums. There is a high risk of an expensive imported car being stolen rather than an ordinary car. Therefore, expensive cars are high risk and their insurance will cost a lot more than usual. Your credit score will affect your insurance rate as well. Your driving record will also have a very important say.