North Dakota Auto Insurance Quotes and
Coverage Guide
North Dakota Motor Vehicle Insurance
Questions & AnswersQ: Is auto insurance mandatory?
A: Yes. With less than a million people in the
entire state of North Dakota, it doesn’t seem like
it’d be all that easy to find someone to hit or get
hit with or by a vehicle. But it seems to happen
with regularity and in an effort to keep people off
the road who could still manage to hit you even with
both arms tied behind their backs (the way they
drive their cars, apparently), the Peace Garden
State requires all motor vehicles registered and
operated here to carry certain minimum insurance coverages.
Q: Is North Dakota a "no-fault" state?
A: Yes. North Dakota’s insurance law is based on the
no-fault system, a plan intended to lower the cost
of auto insurance by keeping small claims out of the
courts. Each insurance company compensates its own
policyholders for the cost of minor injuries
regardless of who managed to drive clear across the
Badlands to find someone to hit.
Drivers in North Dakota may sue for severe injuries
if the case meets certain conditions known as a
monetary threshold, which is expressed in dollar
amounts of medical bills. So don’t think you can’t
get sued just because you’ve got no-fault insurance.
You’ve just got to really crack someone up pretty
good to wind up in court, and we’re not talking
about causing them to laugh their way into the
intensive care unit.
Q: What coverages are required by the state?
A: The coverages and minimum limits mandated by law
are BIL, PDL, UM/UIM, and PIP, which translated into
English mean:
-- Bodily Injury Liability: $25,000 per person (the
maximum amount payable to one person)/$50,000 per
accident (the maximum amount payable to all people
injured in one accident). Bodily injury liability
provides coverage for claims brought against you for
bodily injury caused to another person through the
operation of your vehicle.
-- Property Damage Liability (PDL): $25,000 per
accident. Property damage liability provides
coverage for claims brought against you for damage
caused to someone else's property through the
operation of your vehicle.
-- Uninsured Motorist Coverage (UM): $25,000 per
person/ $50,000 per accident. Uninsured motorist
provides you coverage for a bodily injury claim you
would have against another driver who does not have
insurance. This coverage does not pay for physical
damage to your vehicle.
-- Underinsured Motorist Coverage (UIM):
Underinsured motorist coverage must be equal to the
uninsured motorist coverage. Underinsured motorist
provides you coverage for a bodily injury claim you
would have against another driver whose liability
coverage is less than your underinsured coverage.
-- Basic No-Fault: $30,000 per person. Basic
no-fault provides you coverage for economic loss
(such as medical expenses and work loss) as a result
of an accidental injury in your auto, regardless of
fault. No-fault is also known as Personal Injury
Protection or PIP.
So whether or not you want to play Scrabble with all
these letters or learn what they mean, you’ve still
got to have them in your auto insurance policy.
Q: If I don't carry collision insurance, will either
no-fault or uninsured motorist coverage pay for
damage to my car if an uninsured driver hits me?
A: No, neither no-fault nor uninsured motorist
coverage provide for physical damage to your
vehicle. But at least you can be thankful it was
your fender and not your head that got crunched.
Like they say: "You can always get your fender
fixed, but it'd be hard to grow a new head." (At
least for most of us.)
Q: What if I fail to keep insurance on my vehicle
that I’ve registered in North Dakota?
A: Driving without liability insurance is a class B
misdemeanor punishable by a mandatory fine of at
least $150. Additionally, if you are involved in any
accident, the state will assess 14 points against
your driver’s license, resulting in a suspension of
your license. And depending on which judge you get,
you might be exiled and left to wander in the
Badlands with a mark on your forehead saying “Jerk
Alert.”
Q: What factors go into determining my automobile
insurance premium?
A: Auto insurance premiums vary considerably
depending on risk (known foolishness of driver), coverages (money in driver’s bank account), and
vehicle type (Geo or Lexus) – or to break it down
even simpler: money and foolishness. Over the years,
North Dakota consistently has had one of the lowest
average auto insurance premium rates out of all 50
states and the District of Columbia (and we doubt
because there’s more money or less foolishness --
maybe because there are hardly any people to hit or
get hit?). Premiums are based on:
-- The amounts and types of coverage you buy: The
higher the limits and the broader the coverage, the
higher the premium. (Remember the money thing
above?)
-- Your driving record: Accidents or traffic
violations mean higher premiums. (Again,
foolishness. Don’t blame it on “bad luck.”
-- Your age, sex and marital status: For example,
young, single male drivers generally pay more than
any other group (surely not foolishness!).
-- Where you live: The state is divided into
territories for rating purposes. Generally people in
metropolitan areas pay more than those in less
congested areas (Ah! The light is coming on!).
-- How you use your car: The more you drive, the
more you pay. (The money thing again.)
-- The type of car you drive: It costs more to
repair some cars than others, and companies charge
accordingly. (Geo or Lexus, which is really a money
thing, again. Hmmm. Is there a pattern here?)
-- Your credit history: Consumers with a poor credit
history (financial stability score) might be charged
a higher premium than a consumer with a good credit
history. (And once again -- money.)
Q: Does my auto policy cover a car that I rent?
A: North Dakota law requires that the property
damage liability (PDL) coverage of your personal
auto policy provide coverage in the event you cause
damage to a vehicle you have rented for less than 30
days. Therefore it would not be necessary for you to
purchase the coverage for physical damage offered by
the car rental agency – unless you just want to
impress the girl behind the counter trying to sell
it to you.
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