Auto Insurance is Required In South Dakota
Reader’s Question:
Auto insurance is not really required to have a car registered in South Dakota, is it?
Karen
Sioux Falls SD
Yes, that is true. Auto insurance in South Dakota is only one of the ways to show proof of financial responsibility, a requirement in registering a motor vehicle in the state.
Auto insurance in this state needs to meet the minimum coverage set by the state. To wit, the minimum required liability coverage includes:
- $25,000 bodily injury liability for one person per accident
- $50,000 bodily injury liability on more than two people per accident
- $25,000 for Damages to Property
- $25,000 per individual/max $50,000 per incident uninsured and underinsured coverage.
Auto insurance in South Dakota is unique in also requiring coverage for uninsured and underinsured coverage that is equivalent to bodily injury liability.
You would think that having all these coverage would make South Dakota a very expensive state in terms of premiums. In reality, auto insurance here was the second lowest in 2004 at only $587 on the average! And there are other things you could do to further bring down the premiums:
1. Shop around and ask for discounts from a lot of insurance companies that offer auto insurance in South Dakota.
2. Ask for discounts!
3. Install theft-protection devices for your car.
4. Try to insure several vehicles in one policy.
5. Maintain a clean driving record.
6. Enroll in drivers education.
7. Drive less.
8. Choose a higher deductible.
There are actually a lot of other things you could do. The trick is to lessen your risk, or at least lessen the risk associated with you and your driving patterns. To be sure that you get the lowest price on your premiums, talk to your insurance agents to find out what other things you can do to bring down your premiums. They are the experts when it comes to South Dakota auto insurance, and they would know some things that you generally would not think of.
Do I Need Additional Car Insurance Coverage if I Use my Car to Deliver Items?
Reader’s Question:
I just got a job as a pizza delivery boy in South Dakota and I am wondering if would need to buy an additional insurance coverage while driving on the job? If so, why?
Mark
Sioux Falls, SD
Most insurance carriers’ normal private passenger car policies do not provide coverage if the covered car is being used to deliver property, i.e. for a fee (tips, salary, etc). Coverage can therefore be denied if an accident happens while the personal car is being used to deliver items such as pizza.
According to the South Dakota Department of Insurance most personal car policies will exclude coverage for the car while it is being used for “business purposes” like pizza delivery. Many insurance policies in fact have exclusion for using your vehicle for delivery purposes like your job.
You can speak with your current insurance company if your personal car insurance policy will cover you as a pizza delivery boy, however it will likely not. Your employer may already have liability protection for this type of job to cover the restaurant’s exposure. But, this may not protect you if an accident happens. Your employer will typically require additional insurance to protect themselves if you are negligent.
