South Dakota Codified Law (SDCL) 32-35-113 notes that the State requires that the owner of any motor vehicle required to be registered shall at all times maintain in force one of the following forms of financial responsibility:

• Owners policy of liability insurance.
• The bond of a surety company.
• Certificate of Deposit or securities in the amount of $50,000 deposited with the State Treasurer.
• Certificate of Self-Insurance (minimum 26 vehicles)

Most motorists will obtain proof of financial responsibility for their motor vehicle by acquiring an auto insurance policy on their vehicle for at least the state mandated minimum amounts. SD law requires minimum Bodily Injury Liability coverage of $25,000 per injured person up to a total of $50,000 per accident, and Property Damage Liability coverage with a minimum limit of $25,000. This basic coverage is often referred to as 25/50/25 coverage.

South Dakota state law also requires a minimum UnInsured/UnderInsured Motorist coverage of $25,000 per person, $50,000 per accident for any bodily injury caused by the uninsured driver.

Written evidence of your financial responsibility must be carried in the vehicle covered and presented to any Law Enforcement Officer upon request. Acceptable written evidence is an insurance policy or identification card identifying the name of the company, policy number, effective date of coverage and the date of expiration, or Certificate of Deposit issued by the State Treasurer or Certificate of Self-Insurance.

According to the South Dakota driving manual, a conviction for failure to maintain proof of financial responsibility is a Class 2 Misdemeanor (30 days imprisonment in a county jail, or $100 fine or both), driver license suspension for a period of not less than 30 days or more than one year, and filing proof of insurance (SR-22) with the State of S.D. for 3 years from date of conviction. (Failure to file proof will result in suspension of vehicle registration, license plates and driver license).