South Dakota is not a no-fault state as far as auto insurance is concerned. It is a tort state, which means that one driver will be found responsible for the accident and will be on the hook for paying medical bills and lost wages, as well as the cost of repairs to the other driver’s vehicle. State law requires vehicle owners to purchase bodily injury and property damage liability coverage.
The bodily injury and property damage liability insurance protects the occupants of the other vehicle when a car accident occurs. It pays for their damages, as well as repair costs.
Drivers in South Dakota are also required to buy uninsured motorist coverage. This portion of the car insurance policy pays out if the at-fault driver doesn’t have insurance or the damages were caused by a hit and run driver.
Comprehensive and collision coverage are not required in South Dakota, but it may be a good idea to buy it anyway. Collision coverage pays for the cost of repairing a driver’s own vehicle following an accident. Collision insurance pays out when the damage is caused by events like fire, vandalism, hail or flooding. It also pays a settlement if a car is stolen.
If the car is financed, the lender may require the car owner to protect it by investing in collision and comprehensive insurance coverage. That way, the lender’s interests are protected until the loan is paid off.