North Dakota Car Insurance Rules

North Dakota stands out as one of the states with the lowest car insurance rates. Both the average premiums for state-required minimum coverage and full coverage policies are affordable and well below the national average. However, the state has a slightly higher ratio of uninsured drivers, sitting at 13%, which is just above the U.S. average. North Dakota boasts one of the highest auto ownership ratios, with 118 cars for every 100 people. This statistic aligns with sparsely populated areas in the country, where individuals often need to make private transportation arrangements due to limited public options. Consequently, automobiles and insurance play a pivotal role in the lives of North Dakotans.

North Dakota Auto Insurance Requirements

North Dakota has No-Fault car insurance laws, which operate on a threshold basis. People can claim small injuries through their own insurance, while they can pursue compensation from at-fault third parties or take legal action for substantial and severe injuries. It is mandatory to have liability coverage, and the minimum requirements are as follows:

North Dakota in Pictures

  • $25,000 for bodily injury per person.
  • $50,000 total for bodily injury per accident.
  • $25,000 for property damage. 

Also you must have Personal Injury Protection to comply with no-fault requirements and Uninsured/Underinsured Motorist Bodily Injury coverage with the below minimum limits.

  • $30,000 per person in Personal Injury Protection
  • $25,000 per person, $50,000 per accident in Uninsured/Underinsured Motorist Bodily Injury coverage

North Dakota follows a “no-fault” car insurance system, where your own basic no-fault (also called Personal Injury Protection) coverage pays for your medical bills and certain other out-of-pocket losses, regardless of who caused the accident. However, you can only file a liability claim or lawsuit against the other driver if your injuries meet specific criteria: either your medical expenses exceed $2,500, or you have sustained “serious and permanent disfigurement or disability” lasting over 60 days. Meeting these requirements allows you to seek compensation for all types of losses, including pain and suffering and other non-economic damages, which are typically limited under the no-fault system.

Driving without insurance is a class B misdemeanor and is punishable by a mandatory fine of at least $150. Additionally, you will be required to file an SR-22 with the state.

The state website has further valuable information, guidance and advice.

Average Vehicle Insurance Premiums in North Dakota

The average cost of minimum state-required liability-only car insurance is impressively low at $269, which is less than half of the national average of $622. Meanwhile, the average cost of a full coverage policy in the state is $1,302, making it $712 more affordable than the country’s average. However, it is notable that the premium gap between the basic state-required minimum liability-only coverage and full coverage policies is almost five times higher.

The Peace Garden State is a perfect example of low rural vehicle insurance rates. This can be attributed to the absence of major urban centers, resulting in reduced traffic congestion and fewer incidents of vehicular crimes when compared to densely populated areas.

Competitive Auto Insurers in North Dakota

Many people may think that vehicle insurers are all similar but that cannot be any further than the truth. Each insurer operates with its distinct underwriting guidelines, claims history, and corporate structure, making it quite common to encounter significant price disparities in the market. The following carriers represent the most budget-friendly options in the Peace Garden State, making them an excellent starting point for obtaining several quotes and making comparisons.

  • State Farm
  • Nodak Mutual
  • Auto-Owners
  • North Star
  • American Family
  • Grinnell Mutual

In this state most cities conform to the state averages in terms of car insurance premiums with only moderate variations and above cheapest companies remain competitive across nearly all cities.

North Dakota Car Insurance and Driving Facts

  1. North Dakota enforces a “no pay, no play” law, which means that if you’re injured in a car accident while driving without insurance and have a previous conviction for uninsured driving, you are prohibited from seeking “non-economic” damages from the at-fault driver. This includes compensation for pain and suffering, making it a substantial consequence, particularly for those with serious injuries.
  2. North Dakotans drive 17,671 miles a year on average and it is one of the highest in the country. Estimated yearly mileage is typically taken into account when calculating insurance premiums and it may be more important for some insurers than others.
  3. North Dakota has one of the highest drunk driving arrests in the country, according to Forbes. And having a DUI on your driving record increases auto insurance rates by 79% on average in this state.
  4. North Dakotans have one of the highest average credit scores in the nation at 733. Credit score is one of the key factors in car insurance premium calculations. Having a good credit history helps you get low rates.
  5. According to NHTSA, seat belt usage was 81.9% in this state in 2021. Considering the national average is 90.4%, there is room for improvement as seat belts save lives.
  6. According to the Insurance Institute for Highway Safety, North Dakota experienced one of the highest percentages of fatalities resulting from crashes in rural areas compared to urban areas. 76 percent of traffic-related deaths took place on rural roads within the state in 2021.
  7. Pickup trucks are the most popular vehicles in this state. Ford F-150 is the most popular followed by Chevy Silverado and Dodge RAM 1500.

North Dakota, like any other location, presents distinctive risks that motorists should take into account. It may be advisable for drivers to expand their auto insurance coverage beyond the minimum required liability-only policy. Adding Collision and Comprehensive coverage can safeguard their own vehicles against a wide range of perils, including accidents, theft, fire, vandalism, acts of nature, and more, particularly if they own a valuable car. Additionally, it’s essential to emphasize the importance of shopping around by obtaining multiple vehicle insurance quotes and carefully comparing them before making a final decision.