North Dakota Car Insurance: A Guide to Guidelines for Residents

North Dakota and South Dakota have very different rules when it comes auto insurance, and it would be a mistake for anyone choosing to relocate to not take this into account. Full information pertaining to insurance in North Dakota can be obtained from the North Dakota Insurance Department located in Bismarck by visiting their website, or calling their office, 800-247-0560.

North Dakota is one of thirteen US states with a no fault policy. This means that in the event of an accident all parties involved will be covered by their own insurance company, regardless of which was responsible for the accident to begin with. Because of this, ND requires that all of its residents purchase a PIP policy, which will provide assistance with medical expenses as well as lost wages and, if necessary, funeral expenses. Many individuals who are covered by a comprehensive health insurance policy may elect to purchase only the minimum level of PIP coverage.

There are circumstances under which no fault is not applied. If an injury is sever enough and medical expenses excessive enough the victim may be awarded the right to seek recompense from the responsible individual through a court of law. For this reason it is required that all drivers in North Dakota be covered under a liability policy providing coverage at no less than twenty five thousand dollars for injuries suffered by the driver, fifty thousand dollars for the combined medical expenses of all of the occupants of the vehicle and twenty five thousand dollars to pay for repair to any property damaged by the accident, including the victim’s vehicle. Medical and repair costs being what they are, these expenses can quickly rise in excess of these amounts. As the insured will be held personally liable for these excesses it is recommended that more than the minimum level of liability be purchased.

Comprehensive and collision insurance is not required but is strongly recommended. This will provide for repair for damages inflicted upon the vehicle of the insured in an accident for which they were responsible or which they had no control over, as in the case of inclement weather or a rendezvous with the local wildlife. Collision insurance will pay for repairs up to the Blue Book value of the vehicle, and if damages are found to exceed this amount the owner will be awarded the cash value of the vehicle. Vehicles currently under lien may be required to be covered by a collision policy.

Uninsured motorist insurance is also required for ND residents, and is absolutely essential due to the number of states that do not require their drivers to have liability insurance. This coverage will provide for damages to the vehicle and person of the insured in the event that they are involved in an accident with an uninsured driver. This also provides assistance to those drivers who are involved in a hit and run.