Insurance Center

It's pretty simple: If you own a motor vehicle that's required to be registered in South Dakota, you'll need to have proof of financial responsibility for that vehicle.

Proving Financial Responsibility

You can demonstrate this proof in any of four ways. By having a:

• Liability insurance policy

• Certificate of Deposit, or securities of at least $50,000 deposited with the State Treasurer

• Certificate of Self-Insurance (You'll need to have at least 26 vehicles to qualify)

• Surety company bond

Insurance Minimums

Most people opt for having a policy, as it's the simplest way to prove financial responsibility.

What's the least amount of coverage you may have to be in compliance with South Dakota law?

• $25,000 bodily injury liability for one injured person in an accident

• $50,000 bodily injury liability total for all injured in an accident

• $25,000 property damage liability

In the insurance world, this sort of coverage is known as 25/50/25. Many experts feel that much more coverage―something along the lines of 300/300/100― is considered optimal to protect yourself financially.

You are also required to carry uninsured and underinsured coverage in amounts equal to that of your bodily injury coverage.

Uninsured coverage protects you if you suffer injuries from either a hit-and-run driver, or someone who doesn't have insurance.

Underinsured coverage safeguards you if you sustain injuries caused by someone who does have insurance, but not up to the amounts that you have on your policy.

When and How to Show Proof

You're required to have written evidence of your financial responsibility in the covered vehicle at all times. You also must be able to show this proof to any law enforcement officer if they ask to see it.

What's considered to be sufficient written evidence?

• Insurance policy card (must have the name of the insurance company, effective coverage dates, policy number, and policy expiration date).

• Certificate of Deposit (from the State Treasurer).

• Certificate of Self-Insurance.

Penalties

If you don't maintain proof of financial responsibility, your license will be suspended for anywhere from 30 days to one year. You could also face 30 days in jail and/or a $100 fine. Plus, you'll have to show proof of insurance through a SR-22 filing with the state for three years from the date that you were found guilty.

The SR-22 form is proof that you have insurance on all the vehicles you own. Even if you don't own a vehicle, you'll still need to have an operator or non-owner insurance policy. You'll have to inform either your insurance agent or your insurance company that you require an SR-22 form to be filed on your behalf.

The state provides additional information about SR-22 filings.

To get your license back, you'll have to pay a $50 reinstatement fee, plus any application fees. If your license has expired in the meantime, you'll need to pass the required tests again.

Contact Information

For more information regarding proof of financial responsibility requirements, contact:

• Department of Public Safety

• Driver Licensing Program

• 118 West Capitol Avenue

• Pierre, SD 57501-2036

• Phone: (800) 952-3696