North Sioux City residents pay an average monthly premium of $30 for state minimum liability and $130 for full coverage, which is lower than the national averages of $48 and $140, respectively.
Reasons Why Insurance is So Cheap in South Dakota
There are many reasons South Dakota sees some of the lowest insurance rates in the country.
For starters, it has a relatively low population density with fewer people and much less traffic, so the risk of at-fault accidents causing thousands of dollars in bodily injury or property damage is much lower. One of the ways insurance companies calculate premiums is by using population density.
Another reason is due to the competitive insurance market. Increased competition among several insurers may force rates downward in an ongoing battle to offer competitive policies.
Lastly, South Dakota’s weather is relatively mild, lacking natural disasters that can drive up property damage claims. This results in more affordable premiums for all policyholders in the region.