Commercial Auto Insurance Minimum Requirements in South Dakota
The state's financial responsibility law applies to both private and commercial vehicles. It requires proof of coverage in the event of an accident. For most commercial operators this generally comes in the form of liability insurance.
Ways to Establish Financial Responsibility
The state gives you four compliance options:
- Obtain a surety bond with a state-approved broker.
- Make a cash deposit with the state treasurer.
- Opt for self-insurance.
- Purchase liability insurance.
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.
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
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.Choose a State:
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