Drivers in South Dakota are required to have uninsured and underinsured motorist coverage in place by law. Uninsured motorist coverage pays out if the at-fault driver in a motor vehicle accident does not have insurance coverage in place or the individual responsible for the accident cannot be identified. Car insurance buyers are required to have at least $25,000 in coverage in place to pay for injuries sustained by a single accident victim and $50,000 to compensate all people injured in the same accident.
Underinsured motorist coverage works a little differently. It is used in situations where the at-fault driver has some insurance in place but the available policy limit is not high enough to fully compensate the victims of the accident for their injuries. The responsible driver’s insurance coverage is used first, and the underinsured motorist coverage pays for the balance of damages owing (up to its policy limit). The minimum amount of coverage required by law is the same as for uninsured motorist coverage.
A car insurance buyer in South Dakota can choose to buy uninsured or underinsured motorist coverage with a higher policy limit if he or she chooses to do so. The level of protection is something that the policyholder should consider very carefully. In the case of a serious accident, choosing a policy with a low limit may not be enough to fully pay for the damages suffered in the accident.