In North Dakota, all drivers must carry no less than 25/50/25 in liability coverage and 25/50 uninsured motorist coverage. Motorists are also required to carry $30,000 in personal injury protection.

Written by Kianna Walpole

Edited by R.E. Fulton

Updated on Jan 31, 2024

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Car insurance requirements in North Dakota
Is the state minimum coverage the most cost effective option?
Additional coverage options in North Dakota
Penalties for driving without insurance in North Dakota
FAQs

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Car insurance

laws in

North Dakota

require all drivers to carry 25/50/25 in liability insurance, 25/50 in uninsured motorist coverage, and $30,000 per person in personal injury protection (PIP).

Car insurance requirements in North Dakota

North Dakota’s minimum insurance requirements include the following limits for both

liability insurance coverage

underinsured/uninsured motorist coverage

, and basic no-fault coverage:

Gap insurance

: This coverage pays for the difference between your car’s actual cash value and the amount left owing on your

car loan

if it’s deemed a total loss after an accident.

Towing and labor coverage

: Sometimes also known as ‘roadside assistance’, towing and labor coverage pays for things like lockouts, tire changes, jumpstarts, and towing services.

Accident forgiveness

: Some providers offer accident forgiveness as a one-time waiver to help drivers avoid increased insurance premiums after an accident.

Rental car reimbursement

: If your vehicle is being repaired after a crash, rental car reimbursement will cover the cost of a rental car (subject to policy limits) during this time period.

$50,000 per accident in uninsured/underinsured motorist coverage bodily injury

$30,000 per person in no-fault coverage

According to a recent study by the Insurance Information Institute, 13% (or 87,000) of North Dakota drivers1 don’t have any coverage in place. Uninsured motorist coverage will cover bodily injury costs (aka medical bills) and lost wages if your accident is caused by an uninsured driver.

On the other hand, liability insurance will cover injuries and property damage that you cause in a motor vehicle accident, protecting you from potential lawsuits. No-fault coverage, meanwhile, pays for your own medical expenses and those of family members and passengers, regardless of who was at fault.

Knowing your state minimum insurance requirements are key to making sure you’re compliant.

When you shop for insurance with the

Jerry

app, your state’s legal liability limits are automatically put in place—and you can add or remove coverage as you see fit.

Learn More:

What do I need to get car insurance?

North Dakota is a no-fault state

North Dakota is considered a

no-fault state

, meaning that drivers are responsible to file through their own car insurance company for any personal injuries, regardless of who is at-fault for the accident.

North Dakota’s basic no-fault coverage, also known as PIP coverage, pays for a variety of personal expenses after a claimable accident for both you and your passengers after an accident. This may include medical bills, including rehab, as well as lost wages or funeral expenses.

Is the state minimum coverage the most cost effective option?

North Dakota law mandates the state minimum requirements, but it doesn’t mean it’s your only option. While minimum coverage will make your monthly payments cheaper, it may not be the most cost-effective choice.

North Dakota’s minimum liability limits are similar to the average in other states—but they could be exhausted quickly in the event of a serious accident.

Claims for bodily injury and property damage have increased by 35% According to the LexisNexis US Auto Insurance Trends Report, claims filings increased in 2022—and the severity of car accidents has increased by 40%.2

With just the state minimum coverage limits, you run the risk of not having enough protection in place—and if the other party decides to file a claim and you can’t pay the price, it could impact your current finances, along with your personal assets and future income.

To better protect yourself, opt for higher limits, such as 50/100/50 or 100/300/100, on a

full coverage policy

Josh Damico

VP of Insurance Operations @ Jerry, 15 years experience

A general rule that I recommend is to carry enough coverage to protect your current and future assets – at least $100,000/$300,000 of liability coverage is recommended, but you may need more coverage depending on your financial situation.

The addition of

comprehensive coverage

and

collision coverage

in a full coverage policy is the only way to reliably get coverage for damage to your own vehicle.

You can change your coverage levels or enable a full coverage option in the Jerry app at any time to fit your driver needs.

Here’s an example of a higher liability policy and a full coverage option in North Dakota.

On average, North Dakota drivers generally pay $1,209 per year for a minimum car insurance policy; whereas the average cost of a full coverage policy is around $1,743 annually depending on your provider.

If you lease or finance a vehicle, your lender will likely require you to have a full coverage auto insurance policy in place before driving off the lot.

However,

these prices can change based on several factors

, such as your driving history/driving record, vehicle type, age, and more. That’s why it’s key to compare insurance rates before purchasing automobile insurance.

The difference in pricing between both policies can make a full coverage option seem daunting.

But in the Jerry app, you can run car insurance quotes for both the minimum requirements and a full coverage policy with high limits to help you find savings.

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Learn More:

Liability vs full coverage car insurance

Additional coverage options in North Dakota

A full coverage car insurance policy opens up a world of add-ons that you can include in your North Dakota auto insurance plan. Some of the best additional coverage options include:

Gap insurance

: This coverage pays for the difference between your car’s actual cash value and the amount left owing on your

car loan

if it’s deemed a total loss after an accident.

Towing and labor coverage

: Sometimes also known as ‘roadside assistance’, towing and labor coverage pays for things like lockouts, tire changes, jumpstarts, and towing services.

Accident forgiveness

: Some providers offer accident forgiveness as a one-time waiver to help drivers avoid increased insurance premiums after an accident.

Rental car reimbursement

: If your vehicle is being repaired after a crash, rental car reimbursement will cover the cost of a rental car (subject to policy limits) during this time period.

Penalties for driving without insurance in North Dakota

Driving without insurance

in North Dakota is considered a Class B misdemeanor and comes with the following charges:

Offense	Fines	Court fees	Jail time	SR-22
1st offense	$150-$1,000	None	No	Yes, up to 1 year
Subsequent offense	$300-$1,500	$20	Up to 30 days	Yes, up to 1 year

In addition, your North Dakota driver’s license will be suspended until you’re able to provide adequate

proof of insurance

. To have your

license reinstated

, you will need to pay a $50 reinstatement fee.

Motorists will also be required to retake their driver’s test and pay the $10 application fee.

FAQs

What is the cheapest car insurance in North Dakota?

Nationwide, Allstate, and Safeco offer some of the cheapest car insurance policies in North Dakota for a variety of driver profiles. To find the best deals, it’s always ideal to comparison shop between providers.

How much is car insurance in North Dakota?

In North Dakota, drivers typically pay $1,209 per year for a minimum car insurance policy and $1,743 annually for a full coverage option. North Dakota is considered to be one of the cheapest states for car insurance, coming in well under the national average for both minimum and full coverage options.

Do you need proof of insurance to register a car in North Dakota?

North Dakota motorists can register a car without insurance—however, to legally drive, you will need at least a state minimum policy following the 25/50/25 rule for liability insurance, 25/50 for uninsured motorist coverage, and $30,000 in PIP.

SOURCES

https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists

https://risk.lexisnexis.com/insights-resources/white-paper/auto-insurance-trends-report