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North Dakota Car Insurance

Auto Insurance Basics in North Dakota

Automobile insurance companies are in the business of quantifying the risk associated with driving cars. This entails measuring the frequency and costs of injuries and property damage from car accidents and then pricing out an insurance product to protect consumers against that risk. So, in essence, auto insurance is a contract between an insurance carrier and and vehicle owner. The insurance carrier agrees to indemnify the policy holder against a set of well defined risks within carefully specified dollar limits. In return the policy holder agrees to pay monthly or annual premiums.

The most common type of auto insurance is liability insurance. In the event that you are responsible for causing an accident, this product will pay for injury and property damages up to the maximum cap specified in the policy. Should the damages in an accident you cause exceed that amount you could be responsibility for paying the balance of the claims. For that reason, financial advisors often recommend buying as much liability insurance as you can comfortably afford.

Car owners in North Dakota should also consider auto insurance products that provide a financial cushion for their own possible medical costs and property damage resulting from a car accident. Three of the most common financial instruments for providing that protection are personal injury protection, collision insurance, and comprehensive insurance. Personal injury protection, or PIP, covers medical expenses and, often lost wages resulting from a car accident. It can supplement any existing health insurance you may already carry. Collision insurance helps reimburse you for the cost of repairs or even replacing your car if it is damaged in an accident with another vehicle. Often times, if you lease or finance your automobile, you may be required by your lender to carry collision insurance. Comprehensive insurance covers a variety of other possible damaging events that are out of your control such as hitting an animal, storm damage, theft, vandalism, and a variety of other risks.

In addition, North Dakota car owners can consider purchasing Uninsured Motorist insurance which protects you from an at fault driver without any coverage or with out sufficient coverage to pay your damages. Finally, there are a variety of other products such as Roadside assistance, temporary rental car replacement, and other niche products that you can consider.

All policies have a lower and upper dollar limit that govern your coverage. The lower limit is known as the deductible. This is the amount of money you are expected to out first, out of your own pocket, before your insurance company starts to pay out claims against you. Deductible levels can range from $500 to a couple of thousand dollars, and each increment has its own price point. The upper dollar limit of your policy is the maximum amount your insurance company will pay out on your behalf, after which you may be held personally liable.

Auto Insurance Requirements in North Dakota

Insurance in the U.S. is governed at the state level and North Dakota follows the “No Fault” model of car insurance. This means that regardless of who actually caused an accident, drivers go to their own insurance companies first to get compensated for medical bills and property damage. No fault insurance does not generally cover pain & suffering or other non-monetary damages. Although it can be more expensive than the alternative, known as “at fault” insurance, it simplifies the process of receiving damages by bypassing going through another company and time consuming lawsuits. North Dakota requires its vehicle owners to carry a minimum of $25,000 of bodily injury liability for a single injured person in an accident, $50,000 for bodily injury to two or more injured people, $25,000 for property damage, and $30,000 for PIP insurance.

Average Cost of Coverage in North Dakota

Full car insurance (liability, comprehensive and collision) costs about $1,400 on average across the United States. North Dakota vehicle owners typically pay about 10% to 15% less than the national average. Part of the reason for this is due to the low density of population in the state. However individual insurance shoppers will have their policies based on a variety of personal factors such as their driving record, their age, their credit score, the amount of miles they typically put on their car, among others. Having an accident can add hundreds of dollars to your annual bill as can serious moving violations.

Cheapest Car Insurance Companies in North Dakota

There are many insurance companies, large and small, serving the North Dakota market, so don’t just assume that the national brands will automatically give the lowest prices. Smaller, regional companies like Grinnell Mutual, Nodak Mutual, American Family and other regional carriers are often very competitively priced. Some carriers like USAA coater exclusively to current and retired armed forces members. Shop around to find who can give you the best deal.

Rank Company  Avg. Premium (annual)
1 USAA $976
2 Allied $1,119
3 State Farm $1,265
4 Progressive $1,693
5 State Auto $1,969
6 Allstate $2,087
7 American Family $2,405
8 GEICO $2,761

Unique Car Insurance Rules and Penalties in North Dakota

You will be able to register your car in North Dakota in advance of obtaining insurance, but you must have an active policy in order to legally drive that vehicle. The state requires drivers to always carry proof of insurance while driving. The penalties for driving without insurance range from fines and reinstatement feeds to possible jail time for multiple offenses.

Violation Avg. Annual Auto Insurance Rate % Insurance Rate Increase $ Insurance Rate Increase
Hit and Run $2,182 65% $857
Refused Breathalyzer/Chemical Test $2,073 56% $748
DUI $2,073 56% $748
Racing $2,182 65% $857
Reckless Driving $2,113 59% $788
Driving with a Suspended License $2,182 65% $857
At-Fault Accident $1,807 36% $482
Driving with an Open Container $1,587 20% $262
Operating a Vehicle Without Permission $1,685 27% $360
Passing a School Bus $1,680 27% $355
Improper Passing $1,618 22% $293
Following Too Closely $1,600 21% $275
Speeding $1,617 22% $293
Failure to Stop at a Red Light $1,714 29% $390
Illegal Turn $1,600 21% $275
Driving Wrong Way/Wrong Lane $1,618 22% $293
Failure to Yield $1,618 22% $293
Speeding in a School Zone $1,613 22% $288
Driving Too Slowly $1,577 19% $252
Distracted Driving $1,590 20% $265
Driving with Expired Registration $1,444 9% $119
Failure to Show Documents $1,444 9% $119
Not-at-Fault Accident $1,401 6% $76
Failure to Use Child Safety Restraint $1,351 2% $26
Failure to Wear a Seat Belt $1,351 2% $26
Driving Without Lights $1,351 2% $26

How to Get the Cheapest Car Insurance in North Dakota

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