North Dakota Auto Insurance Laws

By Nicholas Katers

  • Overview

    North Dakota Auto Insurance Laws
    North Dakota's population of 640,000 is subject to a rigorous set of auto insurance laws established by the state Legislature. These laws recognize the high speed limits, long distances between cities and other limitations of living in North Dakota. The state's Insurance Department has developed programs like the North Dakota Automobile Insurance Plan to ensure that every driver has access to auto insurance. To stay compliant with state laws, every resident should understand minimum requirements before purchasing auto insurance.
  • North Dakota's Minimum Liability Requirements

    North Dakota residents have to adhere to a 25/50/25 formula when purchasing minimum liability coverage from auto insurers. This formula gives drivers $25,000 in coverage for one person's injuries in a single accident, $50,000 for multiple injuries in an accident and $25,000 in property damage coverage. These minimum liability requirements are integral to protecting state residents from accidents that reduce property and vehicle values.
  • Personal Injury Protection in North Dakota

    North Dakota's personal injury protection (PIP) requirement is among the highest in the United States. Residents must purchase at least $30,000 in PIP with their auto insurance policies. Personal injury protection is designed to cover everything from hospital bills to lost salary connected to auto accidents. This level of protection allows drivers to work through one insurer instead of sending claims to health and auto insurers after accidents. Critics of PIP requirements in North Dakota feel that drivers may be paying for coverage overlapping with health and life insurance policies.


  • Uninsured and Underinsured Motorist Coverage

    Every adequately insured driver in North Dakota is protected against financial damages caused by uninsured and underinsured motorists. The state requires coverage amounting to $25,000 per person and $50,000 per accident for uninsured and underinsured motorists for every driver. This coverage pays for medical, funeral and legal costs for drivers and their passengers involved in accidents with uncovered drivers.
  • Auto Insurance Coverage for Rental Cars

    North Dakota drivers can save money on rental car insurance under the state's rental coverage requirements. Drivers who rent cars in North Dakota for less than 30 days can rely on their auto insurance to pay for legitimate claims instead of paying for high-priced rental insurance. This approach to rental car coverage saves money for North Dakota residents and cuts down on red tape associated with claims on rental vehicles' damage or theft.
  • North Dakota Automobile Insurance Plan

    The North Dakota Automobile Insurance Plan is a program that covers residents who are unable to get coverage from traditional providers. Every applicant to the Automobile Insurance Plan should be a state resident, own a registered vehicle in North Dakota and hold a valid North Dakota driver's license. The state also requires applicants to have paid off past auto insurance premiums for 12 months before receiving this coverage. While the state's insurance plan is more expensive than private insurance, it helps drivers with tickets, DUIs and accidents on their records stay covered.
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