North Dakota Auto Insurance Requirements: Everything You Need to Know

Getting auto insurance can be confusing, especially understanding what coverages and limits you need to carry by law in your state I’m going to explain North Dakota’s auto insurance requirements so you can shop for a policy knowing exactly what you need.

As an auto insurance agent in North Dakota for over 10 years, I’ve helped hundreds of drivers understand their state’s minimum requirements I’ll walk you through liability, uninsured motorist, underinsured motorist, no-fault, and other coverages so you can make an informed decision on protecting yourself and your vehicle

North Dakota Minimum Auto Insurance Requirements

North Dakota is an “at-fault” auto insurance state, meaning the driver who causes an accident is held liable. To operate a vehicle legally in North Dakota, you must carry at minimum:

• Bodily Injury Liability: $25,000 per person/$50,000 per accident. This covers injuries you cause to others.
• Property Damage Liability: $25,000 per accident. This covers damage you cause to others’ vehicles and property.
• Uninsured Motorist: $25,000 per person/$50,000 per accident. This covers injuries to you and your passengers caused by an uninsured driver.
• Underinsured Motorist: Equal to your uninsured motorist coverage. This covers injuries caused by a driver who doesn’t have enough liability insurance to cover your damages.
• Basic No-Fault: $30,000 per person. Also called Personal Injury Protection (PIP), this covers medical expenses for you and your passengers, lost wages, and other benefits.

These state-required coverages are called mandatory minimums because every driver in North Dakota must carry them. Without them, you cannot legally drive.

If you lease or finance your vehicle, the leasing company or lender will likely require you to carry more than the state minimums to protect their financial interest in your vehicle. Always check with them on their specific requirements.

Recommended Auto Insurance Coverages

While North Dakota only requires you to carry the state minimums above, I strongly recommend buying more protection. Accidents can easily exceed the minimum limits, leaving you financially exposed.

Here are some additional coverages I recommend carrying:

• Higher Liability Limits: Consider at least $100,000 per person and $300,000 per accident to better protect your assets.
• Uninsured/Underinsured Motorist: Match your liability limits.
• Comprehensive: Covers damage to your vehicle from theft, vandalism, weather, animals, fire and more.
• Collision: Covers damage to your vehicle from collisions with objects like other vehicles or buildings. Consider a $500 to $1000 deductible to save on premium.
• Rental Reimbursement: Pays for a rental car if your vehicle is being repaired after a covered loss.
• Roadside Assistance: Pays for towing, lock-out service, fuel delivery, battery jump starts, and other roadside help.

How Insurance Companies Determine Your Rates

Insurance companies use many factors to calculate your auto insurance premium. Here are some of the main rating factors:

• Driving Record: Tickets, accidents, DUIs will increase your rates.
• Credit-based Insurance Score: Better scores mean lower rates.
• Location: Where you live plays a big role. Urban areas cost more than rural.
• Annual Mileage: The more miles you drive, the higher your rates.
• Car Make/Model: More expensive or high-theft vehicles cost more to insure.
• Coverage Limits and Deductibles: Higher limits and lower deductibles mean higher premiums.
• Claims History: Frequent claims will increase your costs.
• Age: Young drivers under 25 pay the most, then rates decline until age 65+ when they increase again.
• Marital Status: Married drivers pay less than single drivers.
• Gender: Statistics show young males have more accidents, so they pay more.
• Multi-car Discount: Insure all your vehicles with one company.
• Good Student Discount: Maintain at least a B average for savings.

As you can see, rates can vary widely based on your unique risk factors. That’s why it pays to shop around and compare car insurance quotes from multiple companies. A little effort could save you hundreds!

Penalties for Driving Without Insurance in North Dakota

I always recommend carrying more than the minimum required auto insurance, but at the very least you must maintain the state’s mandatory minimum coverages listed earlier. The penalties and consequences of driving uninsured in North Dakota include:

• $150 Fine: For a first offense, you’ll be fined $150.
• $300 Fine: The fine increases to $300 for second and subsequent offenses.
• SR-22: You’ll be required to file an SR-22 form with the state proving you now have valid insurance.
• License Suspension: Driving uninsured can result in a 30-day license suspension.
• Registration Suspension: Your vehicle registration will also be suspended.
• Reinstatement Fees: You must pay a $50 reinstatement fee to get your license and registration back.

In addition to the fines and suspensions, driving uninsured leaves you totally financially exposed in the event of an at-fault accident. Having to pay for injuries and property damage out-of-pocket could bankrupt you.

Don’t take the risk. Shop around, compare quotes, and make sure you always maintain at least the minimum required auto insurance in North Dakota.

FAQs about North Dakota Auto Insurance Requirements

Below I’ve answered some commonly asked questions about North Dakota’s insurance requirements to help drivers understand exactly what coverages they need:

Q: Can I drive legally in North Dakota with just liability insurance?

A: No, liability insurance alone is not enough. You must also carry the state-required uninsured motorist, underinsured motorist, and basic no-fault coverages.

Q: My teenager just got their license. Do I need to add them to my policy?

A: Yes. North Dakota requires all licensed household members be included on your policy, even if they drive your car infrequently. Notify your insurer as soon as they become licensed.

Q: I let a friend borrow my car. Does my insurance cover them?

A: Yes, North Dakota auto policies automatically extend coverage to permissive users driving the insured vehicle with your permission. Just be sure they have a valid license.

Q: I’m buying a new car. When are the coverages effective?

A: Your existing policy will extend coverage to a newly acquired vehicle for 30 days. But you must notify your insurer within that 30 days to officially add it to your policy to maintain uninterrupted coverage.

Q: I’m moving to North Dakota from another state. Do coverages transfer?

A: No. Insurance is regulated at the state level so you must buy a new policy written in North Dakota upon moving that meets the state minimum requirements. Shop around for quotes specific to your new location.

Q: How much no-fault coverage do I really need in North Dakota?

A: I recommend carrying at least $100,000 in no-fault coverage. Medical costs from even minor injuries can exceed $30,000 quickly, leaving you exposed. More is always better.

The Bottom Line on North Dakota Auto Insurance Requirements

• Maintain at least the required liability, uninsured motorist, underinsured motorist and basic no-fault coverages.
• Higher optional coverages are recommended for better protection.
• Shop quotes frequently, as rates can vary widely between insurers.
• Avoid driving uninsured to steer clear of fines, suspensions, and financial risk.

If you have any other questions, feel free to reach out. I’m happy to help make sure you get the right auto insurance coverage at the best rate for your needs!