Car insurance is a requirement in almost every state, and North Dakota is no exception. Although it is one of the least populated states, the North Dakota car insurance laws are designed to protect all drivers who live or travel throughout the Peace Garden State. It is important to understand the key car insurance laws of North Dakota so you can make informed decisions about your auto insurance policy and if you’re considering switching carriers.
North Dakota experienced 90 fatal crashes, which resulted in 100 deaths, in 2019. Despite this being one of the lowest numbers in the country, it does not diminish the importance of comprehensive car insurance laws that protect all drivers on North Dakota’s roads.
North Dakota has laws regarding car insurance
North Dakota has many car insurance laws that are worth your attention. Nearly every state requires drivers have minimum liability insurance. In North Dakota, drivers are required to carry minimum insurance for liability and other categories. This includes:
- Liability insurance covers both bodily injury liability and property damage liability.
- Uninsured motorist coverage, and underinsured driver coverage
- Basic, no-fault insurance
North Dakota Liability Insurance
Liability insurance covers damage to another person’s vehicle or injuries, if you are at fault in an accident. North Dakota mandates that drivers carry at least:
- $25,000 per person, $50,000 per accident in bodily injury liability
- Property damage liability is $25,000
If you are in an accident that results in serious injuries, the minimum liability coverage might not be enough to provide financial protection. If multiple vehicles are involved in an accident that results in multiple injuries, $50,000 may not be enough to cover all medical costs.
Is North Dakota a no-fault state?
North Dakota is one of the 12 states which follow the no-fault laws. This means that drivers who are involved in an accident must file a claim with the company they own insurance. Drivers must also have uninsured motorist or underinsured driver coverage. This protects the driver in case of a hit and run accident.
No-fault insurance, commonly referred to as personal injury protection (PIP) coverage in other states, is also legally required in North Dakota. No-fault insurance requires that drivers have $30,000 in coverage. This insurance covers economic losses such as lost wages or medical payments that may result from an accident. It does not matter who the at-fault driver is.
Driving without insurance in North Dakota can result in severe penalties
North Dakota law prohibits drivers from driving without insurance. Drivers caught driving without liability insurance face fines of at least $150 per incident, but could be as high as $1,000, and are charged with a Class B misdemeanor. A second offense for driving without liability insurance can result in a minimum $300 fine and a maximum of $1,000.
In addition to steep fines, a driver caught without insurance is required to show proof of future financial responsibility for a period of one year, through an SR-22 filing. You will need to prove this by purchasing liability insurance, cash deposit in the amount for damages in case of an accident or a $25,000. cash bond. This form must be submitted through an insurance agency licensed.
Other North Dakota auto insurance options
Although North Dakota’s insurance laws require more coverage than other states, it is possible that the minimums are not sufficient to provide adequate financial protection. You may also be able to purchase additional coverage that will fill in any gaps left by inadequate coverage.
- Collision coverage:This optional coverage can be purchased by nearly all insurance companies and covers damage to your vehicle in the event of an accident.
- Comprehensive coverage:Nearly all auto insurance companies offer optional coverage. This covers damage to your vehicle that is not your fault. This coverage covers hail damage, vandalism, vandalism, and falling objects.
- Gap insurance:This coverage is for people who finance or lease a vehicle but are in an accident. This optional coverage covers the gap between the amount you owe and what the insurance company values the vehicle.
- Roadside assistance:This is for assistance in the event your vehicle becomes unusable.
Questions frequently asked
Which North Dakota car insurance company is best?
Consider your driving habits and financial resources to find the best North Dakota car insurance company. Bankrate reviewed several options for drivers in North Dakota based on coverage and discount availability, rates, customer service ratings to determine the top choices. Allstate, Auto-Owners and Progressive were all named strong contenders in our list.
Which is the best North Dakota car insurance?
Bankrate reviewed numerous auto insurance carriers to find the cheapest car insurance in North Dakota. The state’s lowest-priced carriers are American Family, Farmers, USAA, Farmers and Geico.
How can you save money on North Dakota car insurance?
You have multiple ways to save available to you for saving on premiums. Comparing rates from different carriers is the best way of comparing them all. Other great ways to save money are to take on higher deductibles or take advantage of as many discount as you can.
What is the average North Dakota car insurance cost?
Insurance costs can vary widely by state. They depend on zip code, driving record, credit score, and many other factors. Bankrate analyzed rates from the Quadrant Information Services and found that the average cost of car insurance in North Dakota was $285 per year for minimum coverage, while full coverage averaged $1,264 per year.
