Car insurance premium is a critical part of your financial expenses. Part of the yearly or monthly budget is required to be dedicated to this critical expense. In most of the states, it is the mandatory requirement. No vehicle is allowed to be driven which is not insured. The fines on the uninsured vehicles are so hefty that they are enough to shatter the budget of a person. Whether it is for renewal or buying a fresh car insurance policy, it is advisable to do a proper research. Online research is perhaps the best option available to get the best prices. There are many factors which decide the premiums of the car insurance. One such factor is the location, i.e. city and the state.
Every state has different motor vehicle rules and as a result, the insurance coverage also differs. South Dakota is a small state in United States which has less than a million population, but it is more famous as one of the states in US which has the highest minimum coverage required in the entire US. The financial responsibility of a person is defined very clearly. Self-insurance can be done; however, to qualify for this, one needs to be the owner of at least 26 vehicles. Financial responsibility of a driver is also established in the form of a surety bond, a $50,000 certificate of deposit and the liability insurance. There is a mandatory coverage rule of 25/50/25, which means that in the event of any accident (covered as per the insurance), the liability of the driver is $25,000 and the liability of all the persons added in total becomes $50,000. $25,000 is also covered for damage caused to another’s property.
Each driver in South Dakota is required to carry either certificate of self-insurance, an insurance identification card and/or certificate of deposit issued by the State Treasurer. The penalties for driving without any of these documents may result in penalties like $100 fine or 30 days of jail, suspended license for a year, if the insurance of the policy is lapsed, then the insured may face suspension of registration, license or license plates. To escape from these penalties, it is very important that the users to get their car insured. However, getting the insurance within the required cost is really challenging. Having said that, getting cheap car insurance in South Dakota is not a big deal. South Dakota is less populated and it does not have famous cities like New York or San Francisco, where car damages, thefts and accidents are very common. Most of its areas lie in rural region, where the car insurance cost is usually less.
In fact, according to a survey, the cost of insurance premium in South Dakota is almost half of that paid by the residents of main cities. Drivers are also eligible for cheap care insurance in South Dakota if they have an accident free track record, have good safety devices installed in the car, and if there are no claims made by the insured persons in previous years.