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

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:

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 coverage. Our PIP guide 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 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, 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.
• 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 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.
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.