South Dakota Legislature Kills Auto Liability Increase Bill

The South Dakota legislature has killed a House bill that would have reportedly increased the cost of auto liability insurance by as much as 20 percent.

“South Dakota is Number 46 among the 51 states in auto insurance policy cost, at an average of $619 per year,” said Laura Kotelman, regional manager and counsel for the Property Casualty Insurers Association of America (PCI), which opposed the bill. “Based on estimates from several of our member companies, mandatory liability insurance minimums would have increased premiums between 11 and 24 percent, depending on the insurer.”

H.B. 1121 would have reportedly doubled the minimum amounts of vehicle liability insurance that people must carry to $50,000 in liability insurance for individual injuries and death, $100,000 for multiple claims from one accident, and $50,000 for damage to others’ property. The current limit is $25,000/$50,000/$25,000.

The House Transportation Committee killed the measure 7-4 because of opposition from PCI and State Farm. Earlier in the session, H.B. 1120, a bill to require proof of insurance at the time a car is registered, also died in the House Transportation Committee.

“The legislature used good judgment in killing these bills,” added Kotelman. “South Dakota currently has an uninsured driver population of only 6 percent, one of the lowest in the country. Increasing minimums for South Dakota drivers could have proved to be too expensive for some, who might have opted to go without insurance because of the cost. Limiting such requirements will help most people in the state do the socially responsible thing and maintain appropriate amounts of auto liability insurance.”