Teen Driver Insurance in South Dakota

Tojocu Editorial Team | Last verified: April 2026

South Dakota operates a graduated driver licensing program for all new drivers under 18 years old, beginning with an instruction permit available at age 14. The graduated driver licensing process takes drivers through several stages and lifts restrictions as drivers become more experienced. The program includes specific holding periods of 180 days with driver education or 275 days without driver education, along with requirements for 50 hours of parent-supervised driving with 10 hours at night and 10 hours in inclement weather.

Licensing Timeline

Teens may obtain an instruction permit at age 14 after passing a knowledge test or completing state-approved driver education. After holding the permit for the required period and having no traffic convictions in the last six months, drivers can apply for a restricted minor's permit. At age 16, after holding a restricted minor's permit for at least 6 months, drivers become eligible for a full operator's license.

GDL Restrictions

Restricted minor's permit holders may drive unaccompanied from 6:00 a.m. to 10:00 p.m., may drive with a legal guardian from 10:00 p.m. to 6:00 a.m., and may not have passengers outside their immediate family or household for the first 6 months. After 6 months on a restricted permit, drivers may carry only one passenger who is not part of their immediate family or household. All cell phone use while driving, even with hands-free devices, is prohibited.

Permit holding period: 180 days with driver education, 275 days without. Nighttime restriction: 10:00 p.m. to 6:00 a.m. unless with parent/guardian. Passenger restriction: No passengers outside immediate family for first 6 months, then only 1 non-family passenger. Cell phone restriction: All cell phone use prohibited, including hands-free devices. Supervisor requirement: Licensed driver 18+ with 1+ years experience for instruction permit. Nighttime exceptions include: parent or guardian present. Passenger exceptions include: immediate family, household members.

Insurance Requirements

South Dakota requires minimum liability coverage of 25/50/25, meaning $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage. Uninsured motorist coverage is required for all policies, providing coverage for personal injuries caused by an uninsured motorist or hit-and-run driver. South Dakota operates under a traditional fault-based insurance system where the at-fault driver's liability insurance covers damages.

Minimum liability limits: $25,000 bodily injury per person / $50,000 per accident / $25,000 property damage. Insurance system: at-fault. Uninsured/underinsured motorist coverage is required. Uninsured motorist coverage required with same 25/50 limits.

Insurance Considerations for Teen Drivers

While South Dakota's minimum coverage requirements are roughly on par with many other states, carrying only the bare minimum typically leaves drivers and their assets at risk, as liability limits can be depleted quickly with even moderate injuries. Teen drivers face higher insurance costs due to their inexperience and statistical crash risk, making it particularly important to understand coverage options and consider higher liability limits to provide adequate financial protection.

Practice Paths to Licensure

Option 1: With driver education course. 50 supervised hours required; 10 night hours required; road test required.

Option 2: Without driver education course. 50 supervised hours required; 10 night hours required; road test required.

Fees

Permit fee: $28. License fee: $28. Fees may be adjusted for drivers under 21.