South Dakota residents are not required to purchase PIP (Personal Injury Protection) despite this being a no fault state. Liability insurance policy is mandatory and it has the following minimum coverage:

• For one person, bodily injury or death a minimum of $25,000
• For more than one person, bodily injury or death, a minimum of $50,000
• For property damage, a minimum of $25,000

A no fault state means that each driver is responsible for paying for their own expenses; this quickens the paying period that the insurance company may take to take care of your bills. However it does not mean that you will pay a thing if you are not responsible. Insurance companies may look for settlement with the responsible party and make them pay for your expenses (keep in mind that you would have already been paid so the insurance company absorbs this lapse time). This also is why having as much liability coverage as possible is recommended. So in case you are responsible for the accident, the other party's insurance company will not harm your assets or properties.

The state requires all drivers to carry proof of owning the correct car insurance policy. It is accepted as proof, the insurance ID card provided by insurance agencies, certificates of deposit emitted by the State Treasurer or a certificate of having self insurance.

If you fail to demonstrate the ownership of auto liability insurance, you may face penalties like fees, driver's license and registration suspension and even county jail.

Although not mandatory, there are other types of car insurance policies highly recommended to own, such as collision, comprehensive and Uninsured / Underinsured coverage.

The first of the optional coverages available mentioned here is Collision, this type of coverage is intended to provide you financial aid to fix your vehicle after it has been part of a collision. Unlike many may believe, collision will pay you, regardless the intensity of the accident, so if it is a small collision in which your car was the only moving vehicle, or a multi vehicle collision, this type of coverage will provide you with all needed to fix all physical damage your car suffered.

Similar to collision coverage, in the way that it will also help pay for reparations and will never provide for medical bills or legal expenses. There is comprehensive coverage.  This type of additional coverage will protect your vehicle against those accidents that don't involve another vehicle and are considered “unfortunate” or mere bad luck. Such as flooding, wild fires, debris falling from high winds, etc. Also comprehensive will protect your vehicle against wildlife, vandalism and damage caused by theft.

In addition to the previously mentioned auto insurance coverages, there is Uninsured / Underinsured motorist. This type of coverage is intended for those accidents in which the responsible party lacks of or has too little insurance of its own, and will fail to pay for your expenses. This provides a quick solution for you and your passengers. Also uninsured motorist is used for those accidents in which the driver responsible abandons the scene (hit and run).