Auto Insurance Liability: North Dakota's Essential Coverage Requirements

In North Dakota, drivers are required to have auto insurance that meets the state's minimum coverage requirements. This includes liability insurance, which covers bodily injury and property damage, as well as uninsured/underinsured motorist coverage and personal injury protection (PIP). The minimum liability coverage limits in North Dakota are 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. The state also mandates a minimum of $25,000 per person and $50,000 per accident for uninsured/underinsured motorist coverage, and a minimum of $30,000 per person for PIP. These requirements ensure that drivers have financial protection and can cover potential injuries or damages in the event of a car accident.

Bodily injury liability

It is important to note that the minimum coverage amounts might not be sufficient for all situations. Experts recommend setting your liability coverage to at least $50,000 per person and $100,000 per accident to provide more comprehensive protection. This is especially important if you have significant assets, such as a house, as it can help protect you from financial risk in the event of a severe accident.

In addition to bodily injury liability coverage, North Dakota also requires other types of car insurance, including property damage liability, uninsured/underinsured motorist coverage, and personal injury protection (PIP). These coverages work together to provide comprehensive protection for drivers and help ensure that everyone on the road is protected in the event of an accident.

Property damage liability

In North Dakota, the minimum property damage liability coverage required by law is $25,000 per accident. This is separate from bodily injury liability coverage, which covers injuries to other people in an accident that was your fault. The minimum bodily injury liability coverage in North Dakota is $25,000 per person and $50,000 per accident.

Uninsured motorist coverage

In North Dakota, uninsured motorist coverage is a mandatory part of the minimum insurance coverage required by state law for all motor vehicles registered and operated in the state. This coverage provides financial protection for bodily injury claims against another driver who does not have insurance.

The minimum uninsured motorist coverage required in North Dakota is $25,000 per person and $50,000 per accident. This means that if you are in an accident with an uninsured driver and you are not at fault, your insurance policy will cover your bodily injury claim up to $25,000 per person, with a maximum of $50,000 total for all people injured in the accident. This coverage does not include physical damage to your vehicle.

Underinsured motorist coverage is also required and must be equal to uninsured motorist coverage. This coverage provides protection for bodily injury claims against a driver whose liability coverage is less than your underinsured coverage.

In addition to the minimum requirements, insurance companies in North Dakota offer higher liability coverage limits and other optional add-ons, such as collision and comprehensive coverage, for an additional cost. It is important to review your insurance policy and understand the specific coverages and limits provided.

Underinsured motorist coverage

In North Dakota, underinsured motorist coverage must be equal to uninsured motorist coverage, which is mandated at $25,000 per person and $50,000 per accident. Underinsured motorist coverage will pay out compensatory damages for bodily injury, sickness, disease, or death resulting from the accident. 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.

It is important to note that your policy limits must be greater than the person who hit you in order to make a claim. This means that your underinsured motorist coverage limits should exceed the at-fault driver's liability insurance limits for you to receive compensation.

Basic no-fault/PIP

Basic no-fault insurance, also known as Personal Injury Protection (PIP), is mandatory in North Dakota. It provides coverage for economic loss resulting from an accidental injury, such as medical expenses and work loss, without regard to who is at fault. PIP benefits are available to anyone covered under the policy, including the policyholder's spouse, relatives who live with the policyholder, and anyone driving the policyholder's covered vehicle with permission.

In North Dakota, when a no-fault/PIP claim is filed, the injured person is entitled to up to $30,000 in compensation for their economic losses. This includes medical bills, lost income, and the cost of paying someone to perform household tasks that the injured person is unable to do. It's important to note that non-economic losses, such as pain and suffering, are not covered under no-fault/PIP insurance.

No-fault/PIP insurance only applies to injuries caused by car accidents and does not cover vehicle damage claims. If your vehicle is damaged or totaled in an accident, you can hold the at-fault driver liable for the damage.

It's worth mentioning that North Dakota is a "no-fault" state, which means that your own insurance will cover certain losses when you're injured in a car accident, regardless of who caused the crash. However, you can step outside the no-fault system and file a liability claim or lawsuit against the at-fault driver if your injuries meet certain thresholds, such as significant medical expenses or serious and permanent disfigurement.

Frequently asked questions