North Dakota Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of North Dakota?

• It is against the law to drive without insurance in the state of North Dakota. All registered vehicles musty carry a hefty amount of mandatory coverages including liability, uninsured/underinsured motorist’s coverage, and personal injury protection (PIP). Please read the next section for a breakdown of specific dollar amounts.
• In the state of North Dakota, you must carry proof of minimum liability insurance coverage at all times.
• If you are caught driving without insurance in the state of North Dakota, you will be fined $150 for the first offense and you may accumulate six or 12 points on your driving record. For second offenses within an 18-month time period, you will be fined $300, and accumulate six or 12 additional points on your driving record. In addition points and fines, you will be required to provide proof of insurance for a three-year period. If you fail to provide proof of insurance to the state, your license will be suspended immediately suspension. You will also be required to surrender your original license and obtain a duplicate, at a cost of $50, with a special notation stating that you are required to provide proof of insurance on file with the state of North Dakota.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in North Dakota, your policy must include minimum liability coverage of:

$25,000 bodily injury or death of one person in any one accident,
$50,000 bodily injury or death of two persons in any one accident,
$25,000 injury to or property damage of others in any one accident,
$25,000 per person, $50,000 per accident uninsured motorist coverage,
$25,000 per person, $50,000 per accident underinsured motorist coverage,
and
$30,000 personal injury protection (PIP)

What are the Rental Car Insurance Requirements?
In the state of North Dakota, it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required under North Dakota insurance law. It is important to keep in mind that most North Dakota personal auto insurance policies offer enough coverage for car rentals. Most major credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

In the state of North Dakota, Uninsured/Underinsured Motorist Coverage is mandatory in the amount of $25,000 per person, $50,000 per accident uninsured motorist coverage and $25,000 per person, $50,000 per accident underinsured motorist coverage.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of North Dakota, auto insurance companies can write policies that exclude household members. These exclusions are listed in the policy’s exclusions section, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance policy carefully before signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

In the state of North Dakota, the insurance laws allow auto insurance carriers to automatically terminate insurance coverage if the premium is not paid on the exact date that it is due. This is called a lapse in insurance. Once your insurance lapses, usually at 12:01 a.m., which is officially the day after your missed payment, you are officially violating North Dakota insurance laws by not carrying the minimum liability coverage. If you are caught driving without insurance in the state of North Dakota, you will be fined $150 for the first offense and you may accumulate six or 12 points on your driving record. For second offenses within an 18-month time period, you will be fined $300, and accumulate six or 12 additional points on your driving record. In addition points and fines, you will be required to provide proof of insurance for a three-year period. If you fail to provide proof of insurance to the state, your license will be suspended immediately suspension. You will also be required to surrender your original license and obtain a duplicate, at a cost of $50, with a special notation stating that you are required to provide proof of insurance on file with the state of North Dakota.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

Under North Dakota state law, insurance companies can look at your Personal Credit History without your permission to determine rates and offers for products. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool North Dakota auto insurance companies may use to underwrite insurance policies. They may also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

North Dakota follows a No Fault system. This means that if you are involved in an accident, it doesn’t matter who is at fault. Your insurance covers you, and the other party’s insurance covers them. North Dakota’s No Fault laws make it illegal for North Dakota motorists to drive without insurance or permit others to drive their vehicle without insurance. If you are caught driving without insurance in the state of North Dakota, you will be fined $150 for the first offense and you may accumulate six or 12 points on your driving record. For second offenses within an 18-month time period, you will be fined $300, and accumulate six or 12 additional points on your driving record. In addition points and fines, you will be required to provide proof of insurance for a three-year period. If you fail to provide proof of insurance to the state, your license will be suspended immediately suspension. You will also be required to surrender your original license and obtain a duplicate, at a cost of $50, with a special notation stating that you are required to provide proof of insurance on file with the state of North Dakota.

What is the average auto insurance premium in this state? As of what year?

As of 2006, North Dakota resident’s average insurance premium was approximately $530, 51st most expensive in the nation. This was down 4.4% from the previous year. The national average was $817.

Sources

Insurance Information Institute 

North Dakota Insurance Department