South Dakota Insurance

About South Dakota Insurance Laws, Health Insurance and Regulations…

The South Dakota insurance industry, like that found in other states, is regulated by the state’s Insurance Division. This agency is responsible for the formation, enact ion, and enforcement of insurance laws and standards. Many of the regulations that govern the South Dakota insurance industry aim to protect consumers from exploitation. Other regulations are designed to ensure the state’s insurance businesses can operate effectively.

As in all states, drivers in South Dakota are required to carry auto insurance coverage. The South Dakota Insurance Division has determined an absolute minimum level of coverage drivers may carry, which must account for

$25,000 for injury or death of a single person; $50,000 for the injury or death of multiple people in a single accident; and $25,000 for damage to property.

The state does not require drivers to carry personal injury protection (PIP) coverage.

Auto insurance rates in the state are determined through numerous factors and these rates are tightly regulated by the South Dakota Insurance Division. On average, drivers in the sSouth Dakota Insurancetate pay approximately $1,178 for their auto insurance coverage.

Though the South Dakota Insurance Division regulates property insurance, the state does not require homeowners or businesses to purchase or maintain any kind of property insurance coverage. In terms of personal property, the matter is often left to homeowners to decide whether coverage is in their best interest. As such, the regulations concerning this sector are primarily meant to ensure that consumers and insurance providers are protected from malicious activity. Homeowners are encouraged by the South Dakota Insurance Division to purchase some form of insurance protection against natural disasters.

The federal Affordable Care Act will have a major impact on the South Dakota insurance industry, as well as the rest of the country. The federal law makes significant changes to regulations governing health insurance and requires all American citizens to purchase and maintain some form of health insurance coverage. The law also requires states build their own health insurance exchange programs. These programs are meant to be marketplaces where consumers can find affordable insurance plans.

Insurance News Update: South Dakota has determined that it will not build its own health insurance exchange due to its fundamental opposition to the provisions of the Affordable Care Act. Instead, the duty of building the exchange will fall to the federal government. The Department of Health and Human Services will oversee the development of an exchange program in the state, which will then be regulated by the federal government and not the South Dakota Insurance Division. The exchange is expected to bring affordable coverage to the 104,000 South Dakotans that currently have no health insurance coverage of any kind, according to information from the Kaiser Family Foundation.

South Dakota Insurance Resources:

South Dakota Insurance Commissioner: Larry Deiter

South Dakota Department of Insurance Website:

South Dakota Insurance Agent Licensing Info:

File Insurance Complaint:

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