# North Dakota car insurance: how no-fault works, what you must carry and why costs run low

> North Dakota auto insurance guide: no-fault PIP benefits, when you can sue, required liability and UM/UIM, rural driving risks and below-average costs.

Canonical page: https://statecover-guide.com/location/north-dakota/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

North Dakota is a no-fault state: every auto insurance policy includes $30,000 of basic no-fault (PIP) coverage per person, which pays medical bills and lost income after a crash no matter who caused it. On top of that, you need liability of at least $25,000 per person, $50,000 per accident and $25,000 for property damage, plus uninsured and underinsured motorist coverage. Average costs are well below the national figure, but rural roads, wildlife and winter weather shape the risks.

## Key facts

| Fact | Detail |
|---|---|
| Minimum liability | $25,000 / $50,000 bodily injury, $25,000 property damage |
| Fault system | No-fault |
| Basic no-fault (PIP) | Required: $30,000 per person (basic no-fault) |
| Uninsured motorist (UM) | Required: $25,000/$50,000 |
| Underinsured motorist (UIM) | Required: equal to your uninsured motorist coverage |
| Lawsuit threshold | No-fault: you can sue for pain and suffering only for a serious injury, including medical expenses over $2,500 |
| Average expenditure (2023) | $807.77 a year vs $1,281 nationally |
| Combined average premium (2023) | $961.28 a year vs $1,438 nationally |
| Regulator | North Dakota Insurance Department, 701-328-2440 |
| Motor vehicle agency | North Dakota Department of Transportation (Motor Vehicle) |

## North Dakota's no-fault system in plain English

North Dakota is one of 12 states with no-fault auto insurance laws. After a crash, you and your passengers first turn to your own policy for economic losses, instead of waiting for a fault decision. Basic no-fault benefits are capped at $30,000 per person per accident and cover:

| Benefit | What state law provides |
|---|---|
| Medical and rehabilitation | Reasonable costs, within the overall limit |
| Work loss | Up to $150 a week |
| Replacement services (help with tasks you can't do) | Up to $15 a day |
| Survivors' income loss | Up to $150 a week |
| Funeral, cremation and burial | Up to $3,500 |

These amounts come from the North Dakota Century Code. A serious injury can use up the basic limit, so it helps to know what your health plan pays after a crash and whether your insurer offers higher limits or [medical payments](https://statecover-guide.com/coverage/medical-payments/) coverage. Our [PIP guide](https://statecover-guide.com/coverage/personal-injury-protection/) compares how other no-fault states structure these benefits.

## When you can still sue: the serious injury test

No-fault limits lawsuits for pain and suffering (non-economic loss). In North Dakota you can bring that kind of claim against the at-fault driver only for a serious injury, which the law defines as one that results in:

- death or dismemberment;
- serious and permanent disfigurement;
- disability lasting more than 60 days; or
- medical expenses of more than $2,500.

Because the medical expense test is a dollar amount, North Dakota is described as a no-fault state with a monetary threshold. Once a claim crosses that line, the at-fault driver's liability coverage matters, which is why the required $25,000 / $50,000 bodily injury limits still count. Our [tort threshold](https://statecover-guide.com/glossary/tort-threshold/) entry explains the idea in general.

## Liability, UM and UIM: the rest of the required package

Besides PIP, every North Dakota policy needs:

- **Bodily injury liability** of $25,000 per person and $50,000 per accident.
- **Property damage liability** of $25,000, for other people's cars and property.
- **Uninsured motorist coverage** (Required: $25,000/$50,000). The Insurance Department notes that it does not pay for physical damage to your own vehicle.
- **Underinsured motorist coverage** equal to your UM coverage.

An estimated 10.6% of North Dakota drivers were uninsured in 2023, below the national 15.4%. Repairs to your own car after a crash with an uninsured driver come from [collision coverage](https://statecover-guide.com/coverage/collision/), not UM.

## Low average cost, rural risks

North Dakota's average auto insurance expenditure was $807.77 a year in 2023, below the national $1,281. The combined average premium for liability, collision and comprehensive was $961.28, compared with $1,438 nationally. Low averages still leave room for big differences between drivers, so cheap car insurance for one household can be costly for another with a teen driver or a recent ticket.

The road picture is mostly rural. In 2024, 81% of North Dakota crash deaths happened on rural roads, compared with 41% nationally. The death rate was 11.3 per 100,000 people, close to but below the national 11.5 per 100,000 people. Speeding was a factor in 22% of deaths (national: 29%), and an estimated 27% of drivers killed were at or above the legal alcohol limit (national: 31%).

Two everyday hazards are worth checking against your policy:

- **Animals.** The Insurance Department lists hitting an animal under comprehensive coverage, not collision. See [hitting a deer](https://statecover-guide.com/blog/hitting-a-deer/).
- **Winter.** Sliding into another car or a guardrail is a collision claim, since collision pays for crashes with other vehicles or objects. Our [winter driving](https://statecover-guide.com/blog/winter-driving-and-car-insurance/) post covers deductibles and towing.

## Ways to pay less in North Dakota

The Insurance Department suggests a few steps:

1. **Shop around.** Rates vary by company, so compare several quotes.
2. **Take an approved defensive driving course.** Completing one qualifies you for a premium discount; the North Dakota Highway Patrol lists approved courses. See [defensive driving courses](https://statecover-guide.com/saving/defensive-driving-courses/).
3. **Review your deductible.** A higher collision or comprehensive deductible lowers the premium.
4. **Ask about discounts** such as good student, accident-free, anti-theft and multi-vehicle.
5. **Work on your credit.** A better credit history can lower your rate.

## FAQ

### Can I sue after a car accident in North Dakota?

North Dakota's lawsuit limit applies to pain and suffering (non-economic loss). To bring that kind of claim, the injury has to be serious under state law, for example medical expenses above $2,500 or disability beyond 60 days.

### How much lost income does North Dakota no-fault pay?

Work loss is capped at $150 a week, and all basic no-fault benefits together are capped at $30,000 per person.

### What happens if I'm convicted of driving without insurance in North Dakota?

State law calls for suspension or revocation of your license. After a conviction, you must show proof of liability insurance to the Department of Transportation for 3 years, which your insurer can file on a state form.

### Is a deer collision covered in North Dakota?

Damage from hitting an animal falls under comprehensive coverage, which is optional unless a lender requires it. Liability-only policies do not pay to fix your own car.

### What coverage do rideshare drivers need in North Dakota?

North Dakota's rideshare law sets higher minimum coverage while you drive for a ride-hailing app: $50,000 / $100,000 bodily injury and $25,000 property damage while logged in and waiting, and $1,000,000 once a ride is accepted. See [rideshare drivers](https://statecover-guide.com/drivers/rideshare/), and compare neighbors [Minnesota](https://statecover-guide.com/location/minnesota/), [South Dakota](https://statecover-guide.com/location/south-dakota/) and [Montana](https://statecover-guide.com/location/montana/).

## Sources

- [North Dakota Insurance Department, Auto insurance](https://www.insurance.nd.gov/consumers/insurance/auto) — required coverages, conviction rules, saving tips
- [North Dakota Century Code, Chapter 26.1-41](https://ndlegis.gov/cencode/t26-1c41.pdf) — basic no-fault benefits and serious injury definition
- [North Dakota Insurance Department, Transportation Network Company guidance](https://www.insurance.nd.gov/sites/www/files/documents/Communications/Educational%20Materials/FINAL%20for%20Print-20170314%20Transportation%20Network%20Company%20Guidance.pdf) — rideshare coverage limits
- [Insurance Information Institute, Background on: No-fault auto insurance](https://www.iii.org/article/background-on-no-fault-auto-insurance) — no-fault states
- [NAIC, Auto Insurance Database Report](https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf) — average expenditure and premium
- [IIHS-HLDI, Fatality Facts: state by state](https://www.iihs.org/research-areas/fatality-statistics/detail/state-by-state) — crash death statistics
- [North Dakota Insurance Department, Contact Us](https://www.insurance.nd.gov/about-us/contact-us), as of October 28, 2026
- [North Dakota Department of Transportation, Motor Vehicle](https://www.dot.nd.gov/motor-vehicle), as of October 28, 2026
- [Insurance Information Institute, Facts + Statistics: Uninsured motorists](https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists), as of October 28, 2026
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/article/naic-releases-20222023-auto-insurance-database-report), as of February 13, 2026
- [Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023 (press release)](https://www.businesswire.com/news/home/20250220231032/en), as of February 20, 2025