Everything You Need to Know About Auto Insurance in North Dakota

North Dakota is known for its beautiful landscapes, with plains and prairies stretching as far as the eye can see. Visitors can enjoy outdoor activities such as hiking, fishing, and birdwatching in many of the state’s parks and nature reserves.

One of the main attractions there is Theodore Roosevelt National Park, which showcases the beauty of the Badlands. People can explore scenic trails, spot wildlife such as bison and elk, and immerse themselves in the history of the area. The geological formations and views make it a must-visit destination for nature enthusiasts.

If you’re planning a road trip to North Dakota, it’s important to make sure you have the right auto insurance coverage. InsureOne can help you find the policy at the lowest price. Our experienced agents can guide you through the process and ensure you have the necessary protection while exploring this region.

How Much Does Car Insurance Cost in North Dakota?

The average cost of car insurance in North Dakota is significantly lower than the national averages. For a full coverage policy, North Dakotans pay an average of $1,302 per year, compared to the national average of $2,014. Even for a minimum coverage policy, the average cost is just $269, compared to the national average of $622.

Compared to its neighboring states, North Dakota continues to offer lower-than-average insurance rates. For example, drivers in Minnesota pay an average of $1,760 per year for full coverage, while those in Montana may expect to pay around $1,889 annually.

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Reasons Why Insurance is So Cheap in North Dakota

One of the reasons for the lower premiums in North Dakota could be the state’s sparse population. With fewer drivers on the roads, the chances of accidents and congestion decrease, which leads to more competitive insurance rates. Insurance prices are often based on statistics, and the lower the risk of accidents, the lower the premiums.

So, if you’re a North Dakotan driver, you can enjoy the benefits of living in a less congested state by taking advantage of the lower car insurance rates available to you.

Affordable Car Insurance Rates Comparison by Cities in North Dakota

The location where you reside significantly impacts the cost of your car insurance. Insurance companies take various factors into account, including accident rates, claims data, instances of car theft, and average repair costs in a specific area.

For a comparison of the average monthly premiums paid by drivers in different North Dakota cities, check out our breakdown below.

City Full Coverage Insurance Liability Insurance Coverage
Fargo $95 $31
Bismarck $109 $31
Grand Forks $96 $31
Minot $108 $32
West Fargo $96 $31
Williston $114 $30
Dickinson $110 $29
Mandan $117 $29

Our average monthly premiums by city are based on the following methodology: male, age 30, lowest possible legal coverage allowed in North Dakota.

How Bundling Your Vehicle and Homeowners Insurance Can Save You Money in North Dakota

Bundling is a smart choice for North Dakota residents as it can lead to substantial savings. On average, residents can receive a 12% discount on their premiums by opting for a car and homeowners insurance bundle. This means that if their car insurance policy costs $1,000 per year, and their home insurance policy costs $1,500 per year, they could potentially save $360 annually by bundling their coverage.

Additionally, bundling policies can also offer convenience by simplifying the insurance process. Policyholders no longer need to manage multiple providers or policies, reducing the hassle of handling various insurance-related tasks.

Moreover, insurance companies often offer additional incentives and perks to those who bundle their policies. These might include discounts on home security systems, waived deductibles, or even free roadside assistance.

What Types of Auto Discounts Are Available in North Dakota?

North Dakota drivers have the opportunity to access significant savings through good driver discounts. Car insurance providers typically classify accounts as claims-free, traffic violation-free, and infractions-free for the past three to five years, although the specific time period varies among insurers due to their unique risk management systems.

By maintaining a positive driving record, North Dakota drivers can enjoy various car insurance discounts, including:

  • Defensive driver
  • Military
  • Anti-theft
  • Loyalty
  • Good student

To achieve maximum savings, remember to apply the 7 Ways Drivers Can Get a Lower Insurance Premium.

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North Dakota Car Insurance Laws

In the state of North Dakota, drivers are obligated to have auto insurance coverage. The minimum requirement includes liability coverage, commonly expressed as 25/50/25, as well as coverage for uninsured motorists and personal injury protection (PIP). Here’s a closer look at what this means.

What Are the Mandatory Car Insurance Requirements in North Dakota?

The mandatory minimum coverage amounts set by law in North Dakota are as follows:

  • Bodily injury liability coverage per person: $25,000
  • Bodily injury liability coverage per accident: $50,000
  • Property damage liability coverage: $25,000
  • Personal injury protection: Maximum of $30,000 per person
  • Uninsured/underinsured motorist coverage: $25,000 per person; $50,000 per accident

It is important to note that while the state minimums in North Dakota are relatively low, the state does require uninsured motorist protection. This type of coverage can be crucial in situations where you are involved in an accident with an uninsured driver who is unable to pay for your repairs or medical bills.

North Dakota follows a no-fault system for car accidents, meaning that your own car insurance company is responsible for covering your injuries regardless of who is at fault through personal injury protection (PIP) coverage.

In addition, North Dakota follows modified comparative negligence laws. If you are found to be more than 50 percent at fault for an accident, you cannot collect any damages from the other party. However, if you are found to be less than 50 percent at fault, you can still collect damages, with the amount reduced proportionately based on your level of responsibility.

What Is the Penalty for Driving Without Insurance in North Dakota?

Operating a vehicle without insurance in North Dakota is classified as a class B misdemeanor and carries potential consequences such as fines of up to $5,000, suspension of driver’s license and registration, and even the possibility of imprisonment.

Additionally, individuals in this situation will be required to obtain SR-22 insurance, which ensures compliance with the state’s minimum liability requirements. As a result, you should anticipate a significant rise in insurance premiums which will remain elevated for the next three years.

What Factors Does North Dakota Law Allow in Determining Your Premiums?

North Dakota car insurance companies take various factors into account when determining insurance costs. These factors may include, but are not limited to:

Since each driver is unique, your car insurance premium will be tailored specifically to you based on these individual factors. If you are seeking the most affordable car insurance in North Dakota, it is advised to maintain a clean driving record and inquire about potential discounts.

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Auto Insurance Rates for Young Drivers vs Older People in North Dakota

In North Dakota, young drivers, specifically those aged between 16 and 25, face significantly higher car insurance rates compared to older individuals. Among this age group, drivers aged 16 to 19 typically pay the most expensive premiums. Due to the increased risk associated with inexperienced drivers, teen drivers in North Dakota pay over three times the national average for car insurance.

On average, teen drivers in North Dakota can expect to pay approximately $4,253 per year for their car insurance coverage. Although this is $543 less than the nationwide average, it is still more than twice the typical rate paid by other North Dakota drivers.

To make this clearer, while a 30-year-old driver in the city of Fargo will only pay $31 for minimum auto insurance coverage, an 18-year-old driver will pay $106 for the same coverage, which is more than three times as much.

These higher rates reflect the insurance industry’s assessment of the higher likelihood of accidents or incidents involving young drivers. It is important for young drivers and their parents to understand the financial implications of these higher insurance rates and explore potential discounts or strategies to mitigate costs while ensuring adequate coverage. Remember that at InsureOne, we are here to assist you in securing the best rates for auto insurance coverage for both you and your family.

What Is Driving Like in North Dakota?

The climatic conditions in North Dakota can have a significant impact on driving and road safety. Due to its location in the northern part of the United States and its continental climate, the state experiences a variety of extreme weather conditions throughout the year.

During the winter months, North Dakota faces cold and snowy weather. Frequent snowfall and gusty winds can result in slippery roads and reduced visibility. This can make driving hazardous and requires extra precautions such as using winter tires and driving at lower speeds.

In the spring and fall, North Dakota’s weather can be unpredictable. Heavy rainfall and storms can lead to sudden flooding, which can result in flooded streets and roads. This presents risks of hydroplaning and makes driving challenging, especially in rural areas.

During the summer, North Dakota can experience high temperatures, particularly in the western part of the state. This can put strain on vehicles and lead to mechanical issues if not properly maintained. Additionally, summer thunderstorms can bring strong winds, hail, and even tornadoes, further increasing risks on the road.

It is important to take these climatic conditions into account when driving in this state. You should be prepared to adapt to sudden weather changes, stay informed about road conditions, and take extra precautions when necessary.

How Many Car Accidents Happen in North Dakota?

In 2022, a total of 98 fatalities occurred in North Dakota. Among these, preventable human behavior played a significant role: 69% of the fatalities resulted from not wearing seat belts, 38% were alcohol-related (including confirmed toxicology and suspected alcohol involvement), 31% involved speed and/or aggressive driving, and 48% were caused by lane departures.

The following chart shows the number of fatal crashes that took place in various counties across the state that year.

City Fatal Crashes in 2022
Barnes 2
Cass 10
Grand Forks 5
Kidder 4
McKenzie 6
McLean 2
Morton 5
Williams 8

Source: North Dakota Department of Transportation (NDDOT)

How Many Uninsured/Underinsured Motorists Are in North Dakota?

North Dakota ranks at No. 21 among all 50 states in 2019, with over 13% of its drivers not having auto coverage. This means that out of every 100 drivers in North Dakota, more than 13 are driving without insurance.

Having auto insurance is crucial in such a scenario to protect oneself and others from potential financial loss and ensure adequate coverage in case of accidents or damages caused by uninsured drivers. If you want more reasons to protect yourself, we recommend reading our article “Why Is Auto Insurance Important?”

Get the Best Car Insurance in North Dakota Today

InsureOne provides a convenient one-stop solution for auto insurance shopping. Our team of expert agents is dedicated to understanding your specific requirements and finding high-quality insurance options tailored to your needs. You can request a quote online, visit one of our offices, or call us at (800) 836-2240 to receive the assistance you deserve.