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North Dakota is a no-fault state that requires a 25/50/25 liability split alongside $30,000 in Personal Injury Protection (PIP) per person. Every policy must also include Uninsured and Underinsured Motorist coverage. To keep premiums low, residents should leverage telematics apps and maintain a strong credit-based insurance score, as local carriers like Nodak or North Star Mutual often offer better rates for rural drivers than national providers.
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Mandatory Coverage Breakdown
To satisfy the NDDOT and keep your plates legal, your policy has to meet these specific thresholds:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident.
- Property Damage Liability: $25,000 per accident.
- Personal Injury Protection (PIP): $30,000 per person.
- Uninsured/Underinsured Motorist (UM/UIM): $25,000 per person / $50,000 per accident.
The $30,000 PIP requirement is quite generous compared to other no-fault states. It doesn’t just cover doctor bills; it can also pay out up to $150 a week if you can’t work, and even $15 a day for “essential services,” like if you need to hire someone to plow your driveway because you’re recovering from an injury.
Types of Car Insurance Coverage
What It Covers
Liability insurance covers damages you cause to others in an at-fault accident. It includes two components:- Bodily Injury Liability: Pays for medical expenses, lost wages, pain and suffering, and legal fees if you injure someone in an accident
- Property Damage Liability: Covers damage to another person’s vehicle, building, fence, or property
State Minimum Requirements
Every state (except NH and VA) requires minimum liability coverage, typically expressed as three numbers (e.g., 25/50/10):- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $10,000 property damage per accident
⚠️ Important: State minimums may not be enough for serious accidents. Consider higher limits like 100/300/100 for better protection.
Average Cost
Liability-only insurance averages $640/year nationally but varies by state and driver profile.What It Covers
Collision coverage pays to repair or replace your vehicle after an accident, regardless of who is at fault. It covers:
- Damage from colliding with another vehicle
- Damage from hitting a stationary object (tree, pole, guardrail)
- Damage from single-vehicle accidents (rollover, running off road)
When You Need It
Collision coverage is optional but required if you finance or lease your vehicle. Even if you own your car outright, collision coverage is recommended if:
- Your car is worth more than $3,000-$4,000
- You can’t afford to replace it out-of-pocket
- You live in an area with high accident rates
How Deductibles Work
You choose a deductible (typically $500, $1,000, or $2,000). If you file a claim, you pay the deductible and insurance covers the rest. Higher deductibles = lower premiums.
Average Cost
Collision coverage adds approximately $300-$600/year to your premium, depending on your vehicle value and deductible.
What It Covers
Comprehensive coverage (often called “comp” or “other than collision”) protects your vehicle from non-collision damage, including:
- Theft – If your car is stolen
- Vandalism – Keyed paint, slashed tires, broken windows
- Weather damage – Hail, floods, tornadoes, hurricanes
- Fire – Vehicle fires from any cause
- Falling objects – Trees, branches, debris
- Animal strikes – Hitting a deer or other wildlife
- Riots and civil disturbances
When You Need It
Comprehensive is optional but required by lenders if you finance or lease. Consider comp coverage if:
- You live in an area prone to storms, floods, or hail
- Your area has high theft or vandalism rates
- You park on the street or in an unsecured area
- Your vehicle is worth more than $3,000-$4,000
Average Cost
Comprehensive coverage typically costs $200-$400/year, less expensive than collision because the risk is lower.
What It Covers
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage protects you if you’re hit by a driver who:
- Has no insurance (uninsured motorist)
- Has insufficient coverage to pay for your damages (underinsured motorist)
- Flees the scene (hit-and-run)
UM/UIM coverage typically includes:
- Bodily injury: Medical bills, lost wages, pain and suffering for you and your passengers
- Property damage: Repairs to your vehicle (in some states)
Why It Matters
According to the Insurance Research Council, approximately 1 in 8 drivers nationwide is uninsured. In some states, that number is as high as 1 in 4. Without UM/UIM coverage, you could be stuck paying out-of-pocket if an uninsured driver hits you.
Is It Required?
Some states require UM/UIM coverage, while others make it optional. Even if not required, it’s highly recommended for financial protection.
Average Cost
UM/UIM coverage typically adds $100-$300/year to your premium—a small price for significant protection.
What It Covers
Personal Injury Protection (PIP), also called “no-fault insurance,” covers medical expenses and lost wages for you and your passengers after an accident, regardless of who caused it.
PIP typically covers:
- Medical bills (hospital, surgery, rehab, prescriptions)
- Lost wages if you can’t work due to injuries
- Funeral expenses
- Childcare costs (if you’re injured and can’t care for children)
- Essential services (housekeeping, lawn care while recovering)
PIP vs. Medical Payments (MedPay)
Some states offer Medical Payments (MedPay) instead of or in addition to PIP. MedPay is similar but typically:
- Covers only medical expenses (not lost wages or other costs)
- Has lower coverage limits
- Is less expensive than PIP
Is PIP Required?
PIP is required in no-fault states (Florida, Michigan, New Jersey, New York, Pennsylvania, and others). Check your state requirements.
Average Cost
PIP coverage costs $200-$600/year depending on your state, coverage limits, and deductible.
Optional Add-Ons to Consider
1. Rental Reimbursement
Covers the cost of a rental car while your vehicle is being repaired after a covered claim. Typically $20-$40/year.
2. Roadside Assistance
Provides towing, flat tire changes, lockout service, fuel delivery, and jump-starts. Usually $15-$30/year.
3. Gap Insurance
If you owe more on your car loan than the car is worth (upside-down), gap insurance covers the difference if your car is totaled. Essential for new car buyers with low down payments.
4. Custom Parts & Equipment Coverage
Covers aftermarket upgrades like custom wheels, stereo systems, or performance modifications not covered under standard policies.
5. Rideshare Insurance
If you drive for Uber, Lyft, or other rideshare services, you need rideshare endorsement to cover gaps when you’re logged into the app but haven’t accepted a ride.
Should You Add Optional Coverage?
Consider your needs:
- New car with loan → Add gap insurance
- Long commute or frequent road trips → Add roadside assistance
- No backup transportation → Add rental reimbursement
- Rideshare driver → Add rideshare coverage (required)
Why “Full Coverage” is the Standard Here
Because of North Dakota’s six-month winters and active wildlife, liability alone rarely cuts it.
- Comprehensive Coverage: Think of this as your “wildlife and weather” shield. If you hit a deer or a bison, a common occurrence on rural highways, comprehensive pays for the repairs. It also covers hail damage and cracked windshields caused by the gravel used on icy roads.
- Collision Coverage: Vital for those moments when you lose traction on a patch of black ice. Whether you hit a snowbank or another car, collision ensures you aren’t stuck with a totaled vehicle and no way to replace it.
Do You Need Collison and Comprehensive Coverage?
Fausto Bucheli Jr, licensed insurance broker and owner of CheapInsurance.com, recommends: “Collision and comprehensive coverage should protect your financial stability, not drain it. If your car is older and paid off, adjusting or removing these coverages can reduce your car insurance costs by hundreds of dollars per year without increasing your real financial risk.”
| Scenario | Recommendation |
|---|---|
| Car is financed or leased | Yes – Required by lender |
| Car worth >$4,000 and you can’t afford to replace it | Yes – Strongly recommended |
| Car worth <$3,000 and you have emergency savings | Optional – Consider dropping |
| Older vehicle paid off with low value | Optional – Liability only may be enough |
Enforcement and the Cost of Going Without
North Dakota is serious about its Vision Zero safety goal. Law enforcement can verify your insurance status electronically in seconds. If you are caught driving uninsured, the penalties can be life-changing:
- Fines: You could be hit with up to $1,000 for a first offense.
- License Notation: A “liability insurance required” notation is added to your license for three years, which is embarrassing and costly to eventually remove.
- The SR-22: You’ll likely be forced to carry high-risk insurance for several years, which can double your monthly premiums.
How to Get Cheap Car Insurance: Tips & Discounts
Car insurance doesn’t have to break the bank. By following these proven strategies, you can significantly reduce your premiums while maintaining adequate coverage.
Compare Quotes from 50+ Carriers
Car insurance rates vary dramatically between carriers—sometimes by $1,000+ per year for identical coverage. Comparing quotes is the single most effective way to save. CheapInsurance.com lets you compare 50+ carriers in 3 minutes. Compare quotes now →
Maintain a Clean Driving Record
Traffic violations and at-fault accidents significantly increase premiums. A single speeding ticket can raise rates by 20-30%. Avoid tickets, don't drink and drive, and practice defensive driving to keep rates low.
Bundle Your Policies
Most carriers offer multi-policy discounts when you bundle car insurance with home, renters, or motorcycle insurance. Bundling can save 10-25% on your total premiums. Bundle and save →
Increase Your Deductible
Raising your deductible from $500 to $1,000 can lower your premium by 15-30%. Just ensure you have enough savings to cover the higher deductible if you file a claim.
Ask About All Available Discounts
Most carriers offer 10-20 discounts, but you must ask. Common discounts include good driver, good student (3.0+ GPA), multi-car, safety features, defensive driving course, paperless billing, and loyalty discounts.
Improve Your Credit Score
In most states, insurers use credit-based insurance scores to determine rates. Improving your credit by paying bills on time and reducing debt can lower your premium by 10-20%
Drive a Low-Risk Vehicle
Sports cars, luxury vehicles, and cars with high theft rates cost more to insure. Choose vehicles with good safety ratings, low repair costs, and anti-theft features to reduce premiums.
Enroll in Telematics Programs
Usage-based insurance programs (Snapshot, Drivewise, SmartRide) track your driving habits via smartphone app or plug-in device. Safe drivers can save up to 30% based on miles driven, hard braking, and speed.
Review Coverage Annually
Your insurance needs change over time. Review your policy annually and adjust coverage as your car depreciates, your financial situation changes, or you move to a different area.
Drop Unnecessary Coverage
If your car is worth less than $3,000-$4,000 and you have emergency savings, consider dropping collision and comprehensive coverage and carrying only liability insurance
Insider Tips to Lower Your Bill
Focus on your telematics programs if you have a long, steady commute. Since many North Dakotans drive long distances on relatively straight roads, usage-based apps that track smooth braking and consistent speeds can easily knock 30% off your bill.
You should also look into anti-theft systems if you live in larger hubs like Fargo or Bismarck. Even simple devices can trigger a small but helpful discount. Finally, keep a close eye on your credit score; in North Dakota, having “Excellent” credit vs. “Poor” credit can be the difference between a $40 monthly bill and a $120 one.
CheapInsurance.com by the Numbers
Founded in California in 1974 as an insurance agency, CheapInsurance.com has spent decades helping people find affordable coverage and became one of the first brokerages to go online in 1998 to make insurance shopping faster and easier. Our mission has always been simple: insurance is a basic necessity, not a luxury, so our technology quickly scans the marketplace in seconds, compares rates, uncovers discounts that might otherwise be missed, and explains coverage in clear, simple terms, giving people real options so they do not overpay for features they do not need while still maintaining strong, reliable protection.
Frequently Asked Questions About North Dakota Car Insurance
Is car insurance mandatory in North Dakota?
Yes, all drivers in North Dakota must carry car insurance. The state requires minimum liability coverage for bodily injury and property damage, as well as uninsured/underinsured motorist coverage.
What types of car insurance coverage are available in North Dakota?
Drivers in North Dakota can choose liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and optional personal injury protection. Liability and uninsured/underinsured coverage are legally required.
How can I reduce my car insurance costs in North Dakota?
You can lower premiums by comparing quotes from multiple insurers, maintaining a clean driving record, increasing deductibles, bundling auto policies with other insurance, and qualifying for discounts for safe driving, low annual mileage, or vehicles with safety features.
