With a growing population and thousands of miles of road, auto insurance is something of a 'must have' for anyone in North Dakota. If you're looking for information on North Dakota insurance, you've come to the right place!

What Insurance Does North Dakota Require?

Like many states, North Dakota requires every driver to carry a minimum policy on their vehicle. You'll need coverage for bodily injury, property damage, uninsured and underinsured motorist, and basic, no-fault protection.

Bodily Injury Liability

North Dakota's minimum bodily injury liability is set at $25,000 per person / $50,000 per accident. This protects against claims brought against the driver for injury caused by your vehicle. It's important to note that North Dakota is a no-fault state -- insurance will pay out on claims regardless of who is at fault -- which is a factor when it comes to coverage limits.

Property Damage Liability

Similar to the bodily injury liability limits, North Dakota requires coverage of at least $25,000 per accident in the case of property damage caused by the operation of your vehicle.

Uninsured Motorist Coverage

$25,000 per person / $50,000 per accident is the minimum amount for North Dakota auto insurance. This protects you in the event that you have a claim against a motorist without insurance. Bear in mind, uninsured motorist coverage only applies in the event of bodily injury: it does not pay out in the case of damage to your vehicle.

Underinsured Motorist Coverage

Underinsured motorist coverage must match your uninsured motorist coverage. As the name implies, underinsured coverage protects you in the event that your damages exceed the liability coverage of the other driver.

Basic No-Fault

Also known as Personal Injury Protection (PIP), this policy offers coverage in the event of economic loss. Economic loss most often applies to lost wages due to an accident. PIP is no-fault, meaning the claim will pay out regardless of who is at fault.

Optional North Dakota Auto Insurance

North Dakota allows drivers to purchase additional, non-mandatory auto insurance coverage.

These include:

  • Collision coverage -- covers physical damage to your vehicle in the event of a collision.
  • Comprehensive coverage -- covers physical damage to your vehicle in the event of theft and other non-collision related damages.
  • Towing coverage -- covers the cost of towing your vehicle.
  • Death and dismemberment coverage -- offers some level of coverage in the event of death or dismemberment.
  • GAP coverage -- covers the 'gap' in value between the value of your vehicle and the amount you owe on the loan (if applicable). GAP coverage applies in total loss situations.

Special Factors in North Dakota Auto Insurance

North Dakota's harsh winters and relatively high accident rates impact auto insurance rates significantly.

Ice, snow, and rain are common occurrences throughout the fall, winter, and spring months. North Dakota's small population and high accident rate -- especially with regards to child fatalities -- is forced to contend with slippery roads, black ice, and other dangers that can contribute to higher premiums.

North Dakota Car Insurance Premium Comparison

Average auto insurance premiums by state are tricky to pin down -- so much depends on the driver -- but North Dakota tends to rank on the 'more expensive' side. Average monthly premiums range from $143 a month ($1,701 annually) down to $110 a month ($1,325 annually)

If you're looking to take the edge off those hefty monthly payments, North Dakota offers some incentives that may interest you. AARP discounts, for example, apply in North Dakota to qualifying members. Of course, many insurance providers offer reduced rates for fuel-efficient vehicles. Unfortunately, North Dakota does not offer statewide green vehicle tax incentives as of the time of this writing. In fact, North Dakota recently passed a new law raising the road tax on electric and hybrid vehicles.

Drivers may benefit from multi-vehicle discounts, good driver discounts, and low mileage discounts. Check with your preferred insurance provider to see what's available!

What's Unique To North Dakota?

North Dakota is one of only twelve states that embrace "no-fault" auto insurance. In the event of an accident, you'll need to file your own claim with your insurance provider (regardless of which driver is at fault). In other words, you must turn to your own provider for coverage.

In practical terms, no-fault auto insurance means you're only able to sue the other party for severe injuries if your injury crosses a certain threshold. That threshold is a level of physical damage or monetary loss (e.g., excessive medical bills as a result of the crash).

North Dakota law sets the threshold for medical bills at $2,500. The threshold for bodily injury is set as "serious and permanent disfigurement or disability" that lasts for more than 60 days

What Factors Do Insurance Companies Use in North Dakota To Calculate Premiums?

North Dakota insurance companies use several factors to determine your auto insurance premium. These include:

  • Age and marital status
  • Gender
  • Driving record
  • Insurance claims record
  • Credit history/credit score
  • Type of vehicle you drive
  • Anti-theft/security systems on the vehicle
  • Average mileage driven per year
  • Where you live -- metropolitan areas tend to have higher premiums

Of these factors, age and credit score appear to have the most impact. For example, drivers in North Dakota with extremely credit scores can expect to pay premiums nearly twice as high as their peers with good credit!

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