South Dakota Automobile Insurance Plan

Introduction

In South Dakota, you can get auto insurance through the SD-AIP. The voluntary market is not functioning properly and you may be able to get coverage through the SD-AIP. There are several steps involved in applying for auto insurance through the SDAIP:

South Dakota Automobile Insurance Plan (SDAIP)

South Dakota Automobile Insurance Plan (SD-AIP) is a state-wide plan of automobile insurance that is administered by the South Dakota Automobile Insurance Plan Board. The SD-AIP was established in accordance with the provisions of Section 12 of article 19, Chapter 43A of the Laws of South Dakota and approved by National Association of Insurance Commissioners on July 1st, 1987. The purpose behind this voluntary program is to provide coverage to all residents who have been found eligible for insurance under its terms and conditions without regard to age or health status; however there may be some exceptions depending upon individual circumstances such as medical history or disability status

Created by the 2017 Legislature, the South Dakota Automobile Insurance Plan (SD-AIP) allows insurers licensed in South Dakota to participate in a state-wide plan of automobile insurance. The SD-AIP will be administered by the South Dakota Automobile Insurance Plan Board and is approved by the National Association of Insurance Commissioners.

  • The South Dakota Automobile Insurance Plan (SD-AIP) is a state-wide plan of automobile insurance and is administered by the South Dakota Automobile Insurance Plan Board.
  • The SD-AIP was created by the 2017 Legislature, which also approved a budget for its operation.

How it works

  • You must be in the voluntary market, meaning that you are not currently covered by any other insurance plan.
  • You must be unable to get auto insurance from another source (such as a company or union).
  • You must have a valid driver’s license and proof of income (wages) for each month during which you need coverage.

If you are looking for auto insurance and can’t find coverage in the voluntary market, you can contact an agent appointed with the SD-AIP. The appointed agent will give you a quote under the SD-AIP plan using rates set by the SD-AIP board. If you accept this quote, your application will be submitted to an insurer who may accept or deny your application based on their underwriting rules and procedures.

The SD-AIP is designed so that anyone living in South Dakota who is 18 years old or older may purchase coverage through this program if they meet certain eligibility requirements (see below), with some exceptions (for example, some drivers over 21).

If you can’t get auto insurance in the voluntary market, you may qualify for coverage through the SD-AIP.

If you can’t get auto insurance in the voluntary market, you may qualify for coverage through the SD-AIP. The SD-AIP is an optional program that provides coverage to certain individuals who are unable to obtain or afford private health insurance. To qualify for this program, applicants must:

  • Be uninsured for at least six months (the time period is determined by when a person becomes eligible for Medicaid)
  • Have no other form of health care coverage available

Conclusion

The plan has been in effect since the beginning of 2017, but many people are still unaware of it. It is important that you understand how this new system works before you apply for coverage under it. If you have questions, please contact us at 1-800-576-8984 or visit www.sdautoinsurance.com for more information about the South Dakota Automobile Insurance Plan (SDAIP).

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