North Dakota car insurance requirements and laws

Minimum car insurance requirements

North Dakota requires every registered vehicle to carry five coverages, not just liability. The state is one of the minority of no-fault states, so a policy that meets the law includes personal injury protection as well as uninsured and underinsured motorist coverage. The Insurance & Securities Department lists the minimums on its auto insurance page, and they match the North Dakota Century Code.

The liability limits are written as 25/50/25 (see what 25/50/25 means: split liability limits explained). Basic no-fault benefits pay economic loss such as medical bills and lost income for you and your passengers regardless of fault, up to $30,000 per person. The statute caps work-loss benefits at $150 per week and funeral costs at $3,500 within that total. Uninsured motorist coverage in North Dakota pays for injuries only; it does not repair your car.

What the minimums mean in practice: suppose you run a stop sign and injure another driver, who runs up $40,000 in medical bills and misses months of work. That driver's own no-fault coverage pays first, up to $30,000. Because the medical bills top $2,500, the injury counts as "serious" under state law, so the driver can also sue you for the remaining costs and for pain and suffering. Your bodily injury coverage pays up to $25,000 for that one person. If the verdict is $90,000, you may owe the difference yourself. Use the How much car insurance do I need? or the state car insurance requirements lookup to compare limits.

Fault system and what it means after a crash

After a crash, each person's own no-fault coverage pays their medical bills and lost wages first, whoever caused it. You keep the right to sue the at-fault driver for noneconomic losses such as pain and suffering only if the injury is "serious." The Century Code defines that as death, dismemberment, serious and permanent disfigurement, disability lasting more than 60 days, or medical expenses over $2,500. That figure is the state's tort threshold. Claims for vehicle damage are not limited by no-fault and go against the at-fault driver's property damage liability.

When fault is shared, North Dakota uses modified comparative fault. Your damages are reduced by your share of the blame, and you recover nothing if your fault is as great as the combined fault of the others (a 50% bar). There is a special rule for small fender-benders: when two drivers are at fault and a claim for direct property damage is $5,000 or less, the driver who is under 50% at fault can recover vehicle damage without a reduction. See no-fault vs at-fault states and comparative vs contributory negligence.

Optional coverage worth considering here

• Higher liability limits. A serious injury claim can easily exceed $25,000. Many drivers buy 100/300/100 or more, often with an umbrella policy.
• Higher UM and UIM limits. Insurers must sell higher uninsured limits on request, up to your liability limits. Underinsured coverage always matches the uninsured limit you pick.
• Comprehensive and collision. The required coverages do not pay to fix your own car. Hail, deer strikes and winter crashes are covered only if you carry these.
• Optional excess no-fault benefits for households whose wage loss would exceed the basic benefit.

What drives rates in North Dakota

North Dakota is one of the cheapest states to insure a car. The NAIC's average expenditure was $808 in 2023, against a national average of $1,281.60. The Insurance Research Council estimated that 10.6% of drivers were uninsured in 2023, below the national 15.4%. Low traffic density, short commutes and fewer lawsuits help keep claim costs down. Against that, hail, long winters and animal collisions on rural highways drive comprehensive and collision claims. Your own price still depends on your record, vehicle, ZIP code and credit-based insurance score (see how car insurance rates are calculated).

Penalties for driving uninsured

Driving without liability insurance is a moving violation. For a first offense, the fee is $150 and you get 6 points on your license. A repeat offense within three years costs $300, and points rise to 12 or 14 in some cases. For a second offense the court also impounds your plates until you show proof of insurance. After any conviction you must keep proof of insurance on file with the Department of Transportation for one year and carry a license with a notation ($50 to add, $50 to remove). If you damage someone else's property while uninsured, the court must order you to pay at least their insurance deductible. See penalties for driving without insurance.

SR-22 and high-risk drivers

The department explains that a DUI, driving under suspension, a chemical-test refusal or driving uninsured leads to a suspension or revocation. Before you can drive again, you must show proof of future financial responsibility to the Drivers License Division for one year. Most drivers do this with an SR-22 filed by their insurer, usually a nonstandard carrier. For an uninsured-driving conviction, the insurer can file the state's own certificate of insurance form instead. Read SR-22 insurance explained and high-risk car insurance: options when insurers say no for how to shop with a filing.

Insurers with a strong presence in North Dakota

National carriers such as State Farm, Progressive, American Family Insurance and GEICO write policies across the state. North Star Mutual, a regional mutual based in Cottonwood, Minnesota, also sells home and auto insurance in North Dakota through local agents. Small-town agencies often place drivers with regional mutuals that may not appear in national ads, so an independent agent is worth a call.

Where to get help

The North Dakota Insurance & Securities Department answers coverage questions and takes complaints about insurers and agents. Call 701-328-2440, email [email protected], or visit insurance.nd.gov. The office is at 600 E Boulevard Ave., Bismarck, on the fifth floor of the State Capitol. Try to resolve a dispute with your agent or insurer first, then file a complaint with the department (see how to file a complaint against a car insurance company). The deadline to sue over an injury or property damage in North Dakota is generally six years (statutes of limitations for car accident claims). Ask a licensed attorney about your specific claim.