A Tort System

South Dakota follows a tort system which means that whenever an accident occurs someone must be found to be at fault for causing the accident. The person that causes an accident is financially responsible for any damages arising from the accident but if you have the proper insurance coverage it is your insurance provider that will assume financial responsibility.

State laws mandate that every driver maintain at least a minimum amount of liability coverage as well as uninsured/underinsured motorists coverage. Below we will talk about the minimum limits you must have in order to comply with South Dakota car insurance requirements.

The minimum limits for a liability plan in the state of South Dakota is often referred to as 25/50/25 coverage. The first two numbers refer to the amount of bodily injury liability coverage. In a 25/50/25 plan your insurance provider will pay up to $25,000 for any one person injured and up to $50,000 for all persons injured in a single accident. The third number refers to property damage liability coverage and with 25/50/25 coverage your insurance provider would pay up to $25,000 for property damage caused in a single accident.

South Dakota car insurance requirements state that uninsured motorist coverage must be a part of all policies. This type of coverage will pay for you, your resident family members, and the occupants of your vehicle for any personal injuries caused by an uninsured motorist or a hit and run driver. This type of coverage does not pay for property damage.

Underinsured motorist coverage is very similar to uninsured but in this case the coverage is for personal injuries sustained in an accident caused by a motorist with inadequate insurance. For example, if you are injured in an accident in which another party is at fault and their coverage is the minimum 25/50/25 coverage discussed above but your medical bills exceed $25,000, your underinsured motorist coverage would pay the difference up to the limits stated in your policy.

The minimum limits for uninsured/underinsured motorist bodily injury coverage is $25,000 for one person and $50,000 for two or more persons injured in a single accident.