Auto Insurance Requirements In North Dakota: What You Need To Know

North Dakota requires all drivers to carry car insurance, which is not only for the driver's protection but also for the protection of others on the road. The state also requires drivers to carry proof of insurance, which must be shown to law enforcement officials upon request. The minimum liability coverage in North Dakota is 25/50/25, meaning $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident. Additionally, drivers need $25,000 for uninsured/underinsured motorist coverage per person and $50,000 per accident. North Dakota is a no-fault state, meaning your insurance provides coverage regardless of who caused the accident, up to the limits of your policy.

Bodily injury liability

In North Dakota, bodily injury liability coverage is a mandatory component of auto insurance. This type of insurance coverage provides financial protection in the event that you are held responsible for causing bodily harm to another person while operating your vehicle. The minimum amount of coverage required by North Dakota state law is $25,000 per person, with a maximum payout of $50,000 per accident, regardless of the number of people injured.

While the minimum coverage amounts are mandated by law, insurance companies often offer higher liability limits. It is recommended to carefully review your insurance policy to understand the specific coverages, exclusions, and limitations. Additionally, it is worth considering purchasing additional coverage options, such as collision and comprehensive insurance, to ensure adequate protection in the event of an accident.

Property damage liability

Understanding Property Damage Liability

It's important to note that property damage liability does not cover damage to your own vehicle. Instead, it specifically applies to the property of others, including other vehicles, buildings, or structures.

Rental Cars and Property Damage Liability

Interestingly, property damage liability coverage in North Dakota also extends to rental cars. If you rent a car for personal use on a short-term basis and are involved in an accident, your property damage liability coverage will apply. This means you won't need to worry about purchasing additional insurance from the rental car company, as your existing policy will provide the necessary coverage.

Uninsured and Underinsured Motorist Coverage

In addition to property damage liability, North Dakota also requires uninsured and underinsured motorist coverage. This coverage protects you if you are in an accident with a driver who does not have insurance or does not have sufficient insurance to cover the damages. The minimum requirement for this coverage is $25,000 per person and $50,000 per accident.

No-Fault Insurance and Property Damage Liability

It's worth noting that North Dakota is a no-fault state, which means your insurance will cover certain losses regardless of who caused the accident. However, when it comes to property damage, you can hold the at-fault driver liable for the damage to your vehicle without any limitations.

Average Cost of Property Damage Liability Coverage

The cost of property damage liability coverage in North Dakota can vary depending on several factors, including age, driving record, and credit history. However, the average annual cost of state minimum property damage liability coverage is approximately $27 per month, or $328 per year. This cost-effective rate helps drivers stay legally compliant without straining their budget.

Choosing the Right Coverage

While the state minimum coverage is a good starting point, it's important to consider your specific circumstances when choosing an auto insurance policy. You may want to opt for additional coverages, such as comprehensive and collision insurance, to protect yourself financially in case of an accident. It's recommended to shop around, compare rates, and select a policy that best suits your needs and budget.

Uninsured motorist coverage

North Dakota is a "no-fault" state, meaning that your insurance will cover certain losses when you're injured in a car accident, regardless of who caused the crash. In North Dakota, you are required to have uninsured motorist coverage of $25,000 per person and $50,000 per accident. This type of coverage is vital as it provides financial protection if you are involved in an accident with a driver who has no insurance.

It is important to note that uninsured motorist coverage does not pay for physical damage to your vehicle. It also does not cover pain and suffering or other non-monetary damages. Additionally, your policy limits must be greater than the person that hit you in order to make a claim.

While North Dakota has one of the lowest rates of uninsured drivers at 7.9%, it is still important to have this coverage in case you are ever involved in an accident with an uninsured driver. This type of coverage will give you peace of mind and help ensure that you are financially protected in the event of an accident.

Underinsured motorist coverage

The maximum liability of the underinsured motorist coverage is the lower of either the amount of compensatory damages established but not recovered, or the limits of liability of the underinsured motorist coverage. This coverage ensures that you and your passengers are financially protected in the event of an accident with a driver who has minimal liability insurance.

Basic no-fault/PIP

Basic no-fault insurance, also known as personal injury protection (PIP), is a mandatory component of auto insurance in North Dakota. This coverage provides compensation for economic losses arising from a car accident, regardless of who caused the accident. The minimum required PIP coverage in North Dakota is $30,000 per person, and it covers medical expenses, lost income, and the cost of paying someone to perform household tasks that the injured person is unable to do.

PIP is designed to speed up the process of obtaining medical care after a car accident by ensuring that some form of coverage is available to everyone involved, regardless of who is at fault. It can also extend to certain instances where an individual is a passenger or is hit by a vehicle as a pedestrian or cyclist.

In North Dakota, PIP benefits are available to anyone covered under the policy, directly or indirectly, including the policyholder's spouse, relatives living with the policyholder, and anyone driving the covered vehicle with permission. It is important to note that PIP does not cover vehicle damage claims, and the at-fault driver can be held liable for damages without limitations.

While PIP provides coverage for medical expenses and certain out-of-pocket losses, it does not include compensation for "pain and suffering" and other non-monetary damages. To pursue a claim for these types of damages, your injuries must meet certain thresholds set by North Dakota state law. These thresholds include necessary medical expenses exceeding $2,500 or "serious and permanent disfigurement or disability" lasting more than 60 days.

Frequently asked questions