North Dakota’s Compulsory Liability Insurance law and the Financial Responsibility law dictate that all motorists in the state must carry liability auto insurance. Drivers can purchase either liability auto insurance, or use an alternate form of financial responsibility to comply with North Dakota’s requirements. Here is a snapshot of the minimum requirements to drive legally in North Dakota:
|North Dakota Required Car Insurance Coverage||ND Required Min. Limits|
|Bodily Injury (BI)||$25,000 per person / $50,000 per accident|
|Property Damage (PD)||$25,000 per accident|
|Uninsured/Underinsured Motorists Bodily Injury (UMBI/UIMBI)||$25,000 per person / $50,000 per accident|
|Personal Injury Protection (PIP)||$30,000 per person|
North Dakota Car Insurance Requirements & Minimum
For an auto insurance policy to comply with ND’s Financial Responsibility Law, motorists must have Bodily Injury Liability coverage, Property Damage Liability coverage, Uninsured/Underinsured Motorist coverage, and Personal Injury Protection (No-Fault coverage). The limits required for the mandatory coverages must equal or exceed the following limits:
Bodily Injury (BI): minimum limits of $25,000 per person and $50,000 for two or more people in a single accident. In the case that you are liable for an accident, BI will cover the medical expense for injuries or death, but only for people in the other car. BI can also cover lost wages for the injured party that could occur as a result of the accident. If you get sued, BI will cover any legal fees or judgments against you, up to your policy’s limits. Higher limits of bodily injury liability are available for purchase in North Dakota, and most drivers choose to purchase limits of $100,000 per person and $300,000 per accident.
Property Damage (PD): $25,000 limit per accident. If in the course of an accident you damage someone else's vehicle, house, or even shrubbery, your insurer would step in to pay for the repairs or replacements. Higher limits of PD coverage are available for purchase. Most North Dakotans choose to purchase higher PD limits of $100,000.
Uninsured / Underinsured Motorists Bodily Injury (UMBI/UIMBI): A number of ND drivers are on the road without auto insurance coverage. If you ever get hit by one of them, or get into a hit and run accident, your UMBI coverage will pay for the medical expenses of your personal injuries in the place of the uninsured motorist. If you are in an accident with a motorist whose liability limits are lower than your UIMBI coverage, your UIMBI coverage will pay the difference of his policy limits up to your purchased limits to cover the medical costs of your personal injuries. The minimum limits required are $25,000 per person and $50,000 for two or more people per accident. It is common for North Dakotans to purchase higher limits of UMBI/UIMBI up to $100,000 limit per person and $300,000 per accident.
Personal Injury Protection (PIP – also known as “no-fault” insurance): minimum of $30,000 per person in an accident. PIP coverage pays for your personal injuries in an accident, regardless of your liability. PIP is an immediate way for you to get those pesky medical bills paid. If you’re unable to work as a result of your injuries, PIP can also make up for the wages you lost. You can purchase higher limits of PIP, but most North Dakotans stick with the minimum required amount.
You will be required to show proof of insurance if you get pulled over in the Peace Garden State. The most common form of proof is your insurance ID card, but if you forget to put it in your glove compartment, North Dakota law allows you to show electronic proof of insurance on your smartphone.
Optional Car Insurance Coverage in North Dakota
To add greater coverage to your ND auto insurance policy, you can opt for additional protection such as physical damage insurance. You can reject optional coverages beyond the minimum required amount of liability insurance, but most drivers feel safer with extra coverage added to their policy.
Physical Damage: there are two types of this kind of protection: collision and comprehensive. If the other party is liable for an accident, their property damage coverage should technically pay for repairs to your car. However, if you are liable for an accident, your collision coverage will still cover the costs of car repairs resulting from the crash. Regardless of your fault in an accident, you can recover your car's repair costs under collision coverage. Comprehensive typically covers everything else (for more of the differences between the two physical damage types, click here). Most North Dakotans purchase collision coverage with a deductible of $500 and comprehensive coverage with a deductible of $250.
Alternative Proof of Financial Responsibility
Alternate proof of financial responsibility is only required in North Dakota if you have been convicted of offenses under motor vehicle laws, of if you have failed to pay judgments on claims related to use of vehicles.
If you do require alternate proof of financial responsibility, you can choose from the following options:
- A certificate of insurance showing that a policy has been issued covering your motor vehicles
- A surety bond that states that a surety company will cover all claims against you on the condition that you eventually reimburse the surety company after the fact.
- A certificate of deposit of money or securities worth $25,000 to the Bank of North Dakota
If you do not require alternate proof of financial responsibility, your standard liability auto insurance policy is your only option to fulfill the law.