Teen Driver Insurance in South Dakota: Parent Guide
South Dakota requires 25/50/25 liability coverage and is an at-fault state.
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South Dakota at a Glance
25/50/25
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Required
Uninsured motorist coverage must be on every policy
14
Minimum learner's permit age, 50 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
State Requirements
The state operates a three-stage graduated driver licensing program: learner's permit at 14, restricted permit at 14 years and 6 months, and full license at 16 years and 6 months after completing all requirements. South Dakota law (SDCL 58-23-3) mandates that all insurers offering auto coverage must make good student discounts available to policyholders, though each carrier sets its own discount percentage and eligibility criteria.
Bodily Injury Liability
Property Damage Liability
Uninsured/Underinsured Motorist
Collision Coverage
Comprehensive Coverage
Cost Overview
$231–$368/mo
Typical monthly rate in South Dakota, adding a driver aged 16–19 to a parent's policy
Rate data: Insurify and ValuePenguin, 2025
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Night driving
10pm-6am
Passengers
graduated
Source: IIHS and state DMV records, verified July 2026
Frequently Asked Questions
What are the graduated licensing rules for teen drivers in South Dakota?
South Dakota issues a learner's permit at age 14 after passing written and vision tests, requiring 50 hours of supervised driving (10 at night). At 14 years and 6 months, teens can get a restricted permit allowing unsupervised driving with a passenger limit (one non-family member under 18) and nighttime curfew (10 p.m. unless for work, school, or with a licensed driver over 18). At age 16 years and 6 months, teens qualify for a full unrestricted license if they've held the restricted permit for 6 months with no violations.
Coverage Types
State Minimum (Liability Only)
South Dakota's required $25,000/$50,000/$25,000 liability limits with no collision or comprehensive coverage. This is the lowest-cost option, adding roughly $150–$250/month to a parent's policy for a teen driver.
Enhanced Liability
Increased liability limits to $100,000/$300,000 bodily injury and $50,000–$100,000 property damage, still without collision or comprehensive. Adds $20–$40/month over state minimum.
Full Coverage (Liability + Collision + Comprehensive)
State-required liability plus collision and comprehensive coverage with a chosen deductible ($500–$1,000 typical). This is required by lenders if the vehicle is financed or leased.
Full Coverage with High Deductible
Full coverage with a $1,000 or $1,500 deductible rather than the standard $500. Reduces monthly premiums by $30–$60 for teen drivers while maintaining lender-required coverage.
Parent Policy Add-On (Recommended)
Adding the teen driver and their vehicle to the parent's existing multi-car policy, typically with full coverage. This is nearly always cheaper than a standalone policy for drivers under 21.
Standalone Teen Policy
A separate insurance policy in the teen's own name, independent of parent coverage. Rare for drivers under 18 and typically much more expensive than adding to a parent's policy.