Which of the following can constitute proof of financial responsibility for a vehicle?

Correct answer

  • A $50,000 certificate of deposit
  • A surety bond
  • A liability insurance policy

Explanation

Under South Dakota law, you must have proof of financial responsibility for each registered vehicle you own. The usual way to satisfy this requirement is to obtain a liability insurance policy on each of your vehicles. Alternatives include a surety bond, a certificate of deposit or securities worth $50,000 deposited with the state treasurer, or a certificate of self-insurance (if you own at least 26 vehicles).

Prepare and pass your Permit Test

Search all Question & Answers

Related questions

Select your state