Detailed Answer

Disclaimer: This article provides general information and does not constitute legal advice.

When you’re involved in a collision in South Dakota and the at-fault driver’s liability limits are exhausted, you still have options to recover loss-of-use or rental car costs. South Dakota law lets you pursue additional coverage through your own policies or other avenues. Below are key paths to consider:

1. Underinsured Motorist (UIM) Coverage
   If you carry UIM on your auto policy, you can seek benefits for rental expenses or loss-of-use once the at-fault driver’s policy is depleted. South Dakota’s UIM statute (SDCL 32-35-243) requires insurers to offer UIM limits at least equal to your liability limits. File a UIM claim promptly and supply all rental receipts and vehicle damage estimates.
2. Rental Reimbursement or Loss-of-Use Endorsement
   Check if your collision or comprehensive policy includes rental reimbursement or loss-of-use coverage. These endorsements cover daily rental fees (up to your policy’s cap) while your vehicle undergoes repairs. Notify your insurer immediately after the accident and submit documentation for approval.
3. Umbrella or Excess Liability Policies
   If you maintain an umbrella policy, it may pick up where primary liability limits leave off. Some umbrella policies extend to rental expenses. Review your declarations page or contact your agent to determine available limits and qualify the loss-of-use claim.
4. Direct Claim Against the Rental Company
   If you rented a vehicle at the time of the accident, the rental company may have purchased its own loss-of-use coverage under its commercial policy. Ask the rental agency for evidence of coverage. You may submit a claim directly to that insurer for daily loss-of-use charges.
5. Negotiation or Small Claims Court
   If insurers deny or underpay your claim, you can negotiate a settlement or file suit in small claims court (claims under $12,000) to recover documented loss-of-use or rental fees. Collect all invoices, repair estimates, and correspondence to strengthen your case.

Helpful Hints

• Document Everything: Save all rental agreements, daily invoices, repair estimates, and correspondence with insurers.
• Act Quickly: Under both SDCL 32-35-243 and your own policy terms, prompt notice is essential to preserve UIM and rental reimbursement rights.
• Know Your Policy Limits: Compare your liability, UIM, and rental reimbursement coverages to determine which applies first.
• Get Written Denials: If an insurer declines your claim, request a written explanation. This letter is vital if you pursue negotiation or court action.
• Consult an Attorney: If insurers resist payment, a South Dakota-licensed attorney can help interpret policy language and represent you in settlement talks or court.