Insurance & Vehicle Considerations
When your teen is ready to hit the road alone, take some time to be sure your insurance policy is ready, too. Most families do this by adding their teen to the family policy, but you might improve savings, coverage or service by comparison shopping for the whole family and your vehicles (and house, boat, motorcycle and anything else you insure).
Three Things to Consider at this Stage
- Finances: Can you and your teen afford the cost of insurance, gas and maintenance? Who will pay for the vehicle? Have you taken time to find a safe car that fits your family budget?
- Readiness: Has your teen demonstrated safe, responsible driving behavior and driven alone for at least six months without a crash or ticket? Make sure you have a parent-teen driving agreement in place and your teen has been driving successfully without you before handing over the keys.
- Involvement: Is your teen ready to own, operate and maintain a vehicle? Involving your teen in the purchase process can be a great learning experience regarding the costs and responsibilities of vehicle ownership.
Insurance Requirements in South Dakota
All South Dakota drivers are required to have insurance at the minimum levels of $25,000 per person for bodily injury, $50,000 per accident for bodily injury and $25,000 for property damage (25/50/25). Insurance companies in South Dakota determine rates on factors such as your driving record, how long you’ve been a licensed driver, how much you drive, where you live and what you drive.
Saving Money on Insurance
Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, it shouldn’t surprise you if your teen’s insurance rate is higher than your own. Here are a few strategies to help reduce teen driver insurance costs.
Learn more about insurance available through AAA for teen drivers and their families.
