State law mandates that you must have proof of financial responsibility in order to legally operate your vehicle. Compliance, for most drivers, comes in the form of liability insurance.

Ways to Establish Financial Responsibility

Depending on your situation, you have four different options:

• Self-insurance, but to qualify for this option you must have at least 26 vehicles registered in your name.

• A surety bond with an authorized in-state broker.

• A $50,000 Certificate of Deposit with the State Treasurer.

• Liability insurance (more information below).

South Dakota Liability Insurance Requirements for Private Passenger

If you choose to carry liability coverage rather than post a surety bond or deposit, you must carry the following amounts:

• $25,000 for injury/death to one person

• $50,000 for injury/death to more than one person

• $25,000 for damage to property

When deciding on a carrier, be sure to compare quotes from different companies. This will increase your chances of finding a rate that meets your needs and budget. Keep in mind that you always have the option of increasing your protection with additional types of coverage ranging from collision to towing.

Proof of Insurance and Financial Responsibility

If a law enforcement officer asks, you must provide one of the following forms of proof:

• A current insurance identification card from your carrier.

• A Certificate of Self-Insurance.

• A Certificate of Deposit issued by the State Treasurer.

Penalties for Failure to Maintain Financial Responsibility

Driving without insurance is considered a Class 2 misdemeanor, resulting in the following penalties:

• A $100 fine and possibly 30 days in the county jail.

• A suspended license for up to one year.

• A requirement to file proof of insurance (SR-22) with the state for three years. If, during this period, you allow your insurance to lapse you face immediate suspension of you registration, license, and license plates.

• Because of your SR-22 status, you'll face higher insurance premiums.

The Motor Vehicle Division (MVD) can give you details specific to your situation. If you face penalties for no proof of insurance, give them a call at (605) 773-3541.