Commercial Auto Insurance Minimum Requirements in South Dakota

Determine Whether You Need Commercial Insurance

Commercial insurance applies to large and small businesses alike. Even if you own a food catering service, commercial insurance may be your best means of coverage. To help you decide, consider the following:

• Will you use a single vehicle or an entire fleet?

• How will your company vehicle(s) be used?

• Who will be driving your vehicle(s)?

• Will you be transporting a heavy load of tools or equipment?

• Will you require use of a trailer?

• Will you need higher limits of liability due to the nature of your business?

If you're still unsure, phone an insurance agent for assistance. You can also give the South Dakota Division of Insurance a call at (605) 773-3563.

Determine the Required Amount of Coverage

If you decide that commercial insurance is the right fit for your business, you now must decide on how much coverage to carry. To help reach a figure weigh the following:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability insurance requirements

Whatever you decide, you must make sure you meet the state's liability minimums:

• $100,000―Per person

• $300,000―Per accident

• $100,000―Property damage

Vehicles transporting hazardous materials will require a higher minimum (usually in the low millions). Rates are contingent upon the material being transported. For more information, contact the South Dakota Division of Insurance at (605) 773-3563.

Purchase a Commercial Policy

After settling on a coverage amount, take the time to shop around. Research as many providers as possible, comparing quotes and policy packages. You'll find some insurance companies offer both auto and commercial policies, and others specialize only in commercial matters.

Proof of Insurance and Financial Responsibility

You and your employees must always carry proof of compliance when driving. Law authorities will accept the following:

• A South Dakota Evidence of Motor Vehicle Liability Insurance card issued by your provider. The card must show your name and either the Vehicle Identification Number (VIN) or the words "Fleet Insured."

• A self-insurance certificate or note.

• A cash deposit certificate or note.

• A surety bond certificate or note.

Penalties for Failure to Maintain Financial Responsibility

No proof of insurance is considered a Class 2 misdemeanor punishable by:

• A $200 fine ($1,000 if transporting hazardous materials).

• Thirty days in jail (one year if transporting hazardous materials).

• Possible suspension and cancellation of your company's operating permit.