Vehicle insurance required — South Dakota Permit Test

Vehicle insurance required on the South Dakota permit test — 5 rules, each with the reason behind it and a question on it while it is fresh.

The rules

SDCL 32-35-113 requires the owner of any vehicle that must be registered to keep one form of financial responsibility in force, such as an owner's policy of liability insurance.

A driver with no insurance who causes a crash leaves the injured family to pay the hospital bills themselves.

South Dakota state law SDCL 32-35-113 requires the owner of any motor vehicle that is required to be registered, maintain in force one of the following forms of financial responsibility:
South Dakota Driver License Manual, p.13

A certificate of deposit or securities of $50,000 deposited with the State Treasurer meets the financial responsibility law.

A smaller deposit would run out after one bad crash, leaving the people who were hurt unpaid.

Certificate of Deposit or Securities in the amount of $50,000 deposited with the State Treasurer
South Dakota Driver License Manual, p.13

A Certificate of Self-Insurance requires a minimum of 26 vehicles.

A small owner who self-insures could not pay for a serious crash, and the injured would get nothing.

Certificate of Self-Insurance (minimum 26 vehicles)
South Dakota Driver License Manual, p.13

Written evidence of financial responsibility must be carried in the vehicle covered and shown to any law enforcement officer on request.

Proof left at home is useless at a crash scene, and the driver can be cited as uninsured.

Written evidence of your financial responsibility must be carried in the vehicle covered and presented to any Law Enforcement Officer upon request.
South Dakota Driver License Manual, p.14

Acceptable proof of insurance names the company, the policy number, the effective date of coverage and the expiration date.

A card without a policy number gives the other driver in a crash no way to file a claim.

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.
South Dakota Driver License Manual, p.14

On the test

Which of these meets South Dakota's financial responsibility law for a vehicle owner?

An owner's liability insurance policy. A driver with no insurance who causes a crash leaves the injured family to pay the hospital bills themselves. South Dakota Driver License Manual, p.13: “South Dakota state law SDCL 32-35-113 requires the owner of any motor vehicle that is required to be registered, maintain in force one of the following forms of financial responsibility:”

How this works

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Where these come from

Every rule here is checked against South Dakota Driver License Manual, published by the South Dakota Department of Public Safety, and against the state code itself. Last checked 2026-10-04.