Auto Insurance Requirements in South Dakota

According to the South Dakota financial responsibility law, you are required to carry and maintain proof of financial responsibility in order to drive legally. The easiest and most common way to comply with the law is to purchase the minimum amount of liability auto insurance required in South Dakota[/link]. However, there are several other ways to meet the requirements.

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If you're pulled over in the Mount Rushmore State, you'll need to show proof of insurance. An insurance ID card will suffice, but on the occasion that you've forgotten your card, South Dakota law allows you to show electronic proof of auto insurance on your smartphone.

South Dakota car insurance requirements and minimums

An SD auto insurance policy must include bodily injury and property damage coverage, as well as uninsured and underinsured motorist coverage. Your liability insurance coverage must meet or exceed the following limits:

Bodily injury (BI): $25,000/person, $50,000/accident

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Property damage (PD): $25,000/accident

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Uninsured/underinsured motorist bodily injury (UMBI/UIMBI)

If an uninsured motorist is at fault for a collision, UMBI coverage will pay for your personal injuries (and those of your family and other passengers). UIMBI, on the other hand, will pay for your personal injuries caused by a motorist without adequate auto insurance. Your UIMBI coverage will cover the difference, up to your purchased limits. Note that UMBI and UIMBI only extend to your bodily injuries, not to any physical damage to your vehicle.

Cheapest companies in South Dakota for minimum liability

Optional car insurance coverage in South Dakota

Insurers in South Dakota offer optional coverages that are often strongly recommended by agents and officials. You can reject these coverages in writing, but they are meant to protect you under different incidents.

Physical damage: Physical damage insurance consists of two coverages — collision and comprehensive. Collision coverage will cover the costs to repair your car's damage from a crash, while comprehensive coverage would pay for your repairs in situations outside of a collision, such as a tree falling onto your parked car. You can make a collision and comprehensive claim regardless of who's at fault for an accident.

Medical payments coverage (MedPay): MedPay helps pay for any medical and funeral expenses associated with auto accidents for you (or whoever is driving), your family members, and other passengers, regardless of their role in the event. MedPay covers hospital visits and stays, doctor's visits, EMT and ambulance fees, funeral costs and more. You can purchase MedPay coverage up to limits of $25,000.

Alternative proof of financial responsibility

Aside from purchasing an auto insurance policy, there are three other ways to prove you are a financially responsible driver in South Dakota:

Cash or security deposit: You can deposit $50,000 with the state treasurer to get a certificate of insurance. If both the state treasurer and the South Dakota Department of Public Safety agree on your deposit, it will be accepted as a form of financial responsibility.

Surety bond: If you don't want to make a deposit, you can file a surety bond (issued by a licensed surety company in South Dakota) to the Department of Public Safety. When filing a surety bond, your licensed surety company is promising to pay in your place if you cannot (but will likely go after you to recover that payment). A surety bond should be at least equal to the minimum insurance policy for any accident you cause. If the DMV commissioner recognizes your surety bond as a valid form of payment, you will be given a certificate to serve as your proof of financial responsibility.

Self-insurance: If you have more than 25 cars registered under your name, you could apply to be a self-insurer. You'll have to meet specific requirements that essentially prove you have the financial ability to pay out as an insurer would. If you get a certificate of self-insurance issued by the South Dakota Department of Public Safety, you are authorized to act as a self-insurer for property damage, bodily injury or both. Your certificate of self-insurance will serve as your proof of financial responsibility.