North Dakota Century Code (NDCC) Title 26 requires all drivers to carry auto insurance. This coverage protects motorists from financial losses from accidents, property damage, and injuries.
In connection with this mandate, the Insurance Department regulates insurance providers and policies. It licenses providers, approves insurance rates, investigates fraud and complaints, and analyzes relevant data in the insurance industry. The state operates under a no-fault insurance system.
Meanwhile, the Department of Transportation (DOT) oversees driver licensing, license suspension, and vehicle registration. It also handles driving records, which are essential when shopping for insurance coverage.
The Department adheres to specific laws to safeguard consumers' interests. Compliance with these regulations helps motorists navigate the roads with greater financial security and peace of mind.
What are the Auto Insurance Requirements in North Dakota?
The state sets minimum coverage limits for insurance coverages in the NDCC Title 39-08. Here are the mandatory and optional insurance protections that vehicle owners can buy.
Mandatory Insurance Requirements
All drivers must always carry proof of minimum insurance coverage. Here are the mandatory insurances that every driver must have:
- Bodily injury coverage: $25,000 for every injured person and $50,000 per accident
- Property damage coverage: $25,000 per accident
- Uninsured motorist coverage: $25,000 per injured person and $50,000 per accident
- Underinsured motorist coverage: same limit as uninsured
- Basic no-fault coverage: $30,000 per injured person
Liability coverage includes bodily injury and damage to property. This insurance pays for injuries and damages to others if the policyholder is at fault in an accident.
Personal injury protection (PIP), or basic no-fault coverage, pays for lost wages, medical expenses, and other related costs, regardless of who is at fault in an accident.
Underinsured/uninsured motorist coverage protects policyholders against drivers who lack sufficient insurance. It covers medical expenses and damages if an uninsured or underinsured driver hits the policyholder.
Insurance companies offer higher limits for these coverages, and drivers are encouraged to opt for higher limits based on their current needs and financial capacity.
Other Optional Insurance
Drivers can opt for additional auto insurance coverages beyond the state-mandated minimums. Here are some options and what they cover:
- Collision coverage: Covers damage to the insured vehicle caused by collisions with other vehicles or objects, regardless of fault.
- Comprehensive coverage: Covers non-collision incidents such as vandalism, theft, hail, fire, and animal collisions.
- Towing coverage: Reimburses emergency towing expenses.
- Death and dismemberment coverage: Provides financial protection in case of severe accidents.
- GAP (Guaranteed Asset Protection) coverage: Pays the difference between a vehicle's actual cash value (ACV) and the unpaid loan balance if stolen or totaled.
Other optional coverages may include rental car reimbursement or custom equipment protection. Drivers should consider their unique circumstances, such as commute distances, vehicle value, and local weather patterns when selecting optional coverages to enhance their auto insurance protection.
Automobile Insurance Plan
The ND Automobile Insurance Plan, often called the "assigned risk plan," serves as a safety net for drivers unable to secure standard auto insurance. This plan enables drivers to meet state-mandated coverage requirements, even with challenging driving records or other underwriting obstacles.
Drivers qualify for the plan if they reside in North Dakota, possess a valid driver's license, and register their vehicle in the state. Additionally, they must not have unpaid auto insurance premiums in the past year.
The plan assigns these high-risk drivers to insurance companies, which ensures coverage availability regardless of driving history.
While the plan provides a crucial coverage option, premiums typically exceed those in the regular market. Drivers facing difficulties obtaining standard insurance should consult their agent or broker about applying to the plan.
The ND Insurance Department oversees this program, balancing the needs of high-risk drivers with the state's insurance requirements. By offering this alternative, the Department aims to keep all drivers insured.
Penalties for Driving without Insurance
North Dakota enforces escalating penalties for drivers who fail to maintain proof of valid liability insurance. Law enforcement can request this proof anytime in a crash or traffic stop. They follow specific procedures to penalize residents who violate this law.
If a person claims they have valid liability insurance during a traffic stop, they receive a warning ticket and have 20 days to provide proof. A written or digital format is accepted.
When drivers admit they don't have valid liability insurance during a crash, a law enforcer can arrest them for a Class B misdemeanor.
The penalties depend on whether a crash incident or a traffic stop occurs. Regardless of the circumstances, offenders will undergo a reinstatement process and pay applicable fees to drive again legally. They will also pay an additional fee to remove the notation on their license once every requirement is submitted.
Crash-Related Circumstances
For crash-related circumstances, a first offender gets 14 violation points, as specified in the ND point system schedule, pays a fine ranging from $150 to $1,000, and loses driving privileges. A license suspension lasts until offenders provide proof.
In addition, offenders may need to file SR-22 for one year and a certificate of insurance for three years. They will need to undergo reinstatement and pay the applicable fees.
Repeat offenders within a year confront more severe consequences. Fines increase significantly with a minimum of $300. Courts may impose up to 30 days of jail time. License suspension remains in effect. In addition to suspension, the SR-22 requirement extends beyond the initial year.
Traffic Stop Circumstances
If drivers fail to provide proof of financial responsibility after 20 days, they will be charged with a Class B misdemeanor. Fines are a minimum of $150, and drivers receive six violation points. The points escalate to 12 points when the offenders don't get coverage within 18 months from the first offense.
When violation points reach 12, the DOT suspends the license and requires offenders to submit a certificate of insurance for three years. Fines for the second offense start at $300. If offenders want to drive legally again, they need to pay a reinstatement fee and undergo a reinstatement process.
How To Choose the Right Auto Insurance in North Dakota?
Navigating the complexities of auto insurance requires a clear understanding of the available options and state-specific requirements. With these requirements, vehicle owners must choose the right insurance coverage and providers. Here are some of the factors they can use to evaluate their prospects and options:
Reputation and Reliability
Researching the reputation of insurance companies operating in the state is crucial. Individuals should examine each provider's financial stability, as this indicates the ability to pay out claims.
Additionally, customer reviews and testimonials are among the most reliable sources to gauge overall satisfaction. Positive reviews often highlight efficient claims handling and excellent customer service. Reliable companies usually process claims promptly.
Drivers should investigate the company's history and longevity in the insurance market. Long-standing companies typically have proven track records.
Lastly, residents looking for insurance coverage must check if a company has a valid license. The state is a member of the National Association of Insurance Commissioners (NAIC), which has a state-based system that enables consumers to check the eligibility and validity of a provider's license to sell insurance.
Individual Needs and Coverage Options
Individuals must evaluate personal driving habits, the value of the vehicle, and potential risks. Drivers who frequently drive or reside in high-traffic areas might need more extensive coverage.
Thus, they should choose a provider that can protect them based on the required and optional coverage they might need. At the same time, they choose a provider that considers their financial capabilities to pay the premium.
When reviewing insurance quotes, vehicle owners should look for hidden fees or charges that may not be immediately apparent. These could include administrative fees, processing charges, or surcharges that can significantly increase the policy's overall cost.
Driver must carefully read through the terms and conditions of each quote and ask the insurance provider for a detailed breakdown of all costs involved. Understanding the total cost of the policy upfront prevents unexpected expenses down the line and ensures that policyholders are getting the best value for their money.
Customer Service and Local Presence
Quality customer service is vital when managing claims and policy changes. Drivers should opt for insurance providers known for their responsive and helpful customer support. They can check customer reviews and ratings to gauge the effectiveness of their service. Reliable customer service equates to prompt assistance during stressful situations.
Moreover, an insurance company with a strong local presence can offer better support and a deeper understanding of specific regional needs and risks unique to North Dakota.
Local agents are more familiar with state regulations, common local hazards, and community concerns. This localized knowledge allows them to provide tailored advice and more personalized customer service.
Evaluating and Comparing Insurance Quotes
Comparing insurance quotes is essential for finding the best rates and coverage. Individuals should gather multiple quotes from at least three insurance companies to do this effectively.
Residents should visit insurance company websites or use online comparison tools to request quotes. They must provide the same information to each company to ensure consistency.
Additionally, vehicle owners may reach out to local insurance agents who can provide personalized quotes and insights. They can review each quote in detail, paying close attention to coverage levels, deductibles, and additional fees.
This comprehensive comparison allows for a more informed decision. It helps in choosing the policy that offers the necessary protection at a competitive price.
What Factors Affect Auto Insurance Rates in North Dakota?
A variety of factors influence auto insurance rates. While the ND Insurance Department doesn't set rates directly, it oversees and approves insurance companies' proposals. Companies must file rate changes with the Department and provide supporting data.
Driving Record
A driver's history and record significantly affect their insurance costs. Insurers typically charge higher premiums for drivers with recent accidents or traffic violations. Clean driving records often lead to lower rates, as they indicate less risk for the insurer.
Age, Gender, and Marital Status
Demographics play a role in determining insurance rates. Young, single male drivers generally face higher premiums than other groups. This reflects statistical data showing higher accident rates among this demographic. As drivers age and gain experience, their rates may decrease, assuming they maintain a good driving record.
Location
North Dakota is divided into territories for insurance rating purposes. Residents of metropolitan areas like Fargo or Bismarck typically pay more than those in rural parts of the state. This difference stems from higher traffic density, accident rates in urban areas, and increased risk of theft or vandalism.
Vehicle Usage and Mileage
How often and how far vehicle owners drive affects their insurance costs. Longer commutes or frequent road trips increase annual mileage and exposure to potential accidents, which can lead to higher premiums. Thus, accurate reporting of yearly mileage can help fair pricing.
Vehicle Type and Safety Features
The make and model of a car can impact insurance rates. Expensive vehicles or those with high repair costs result in higher premiums.
Harsh winters can damage vehicles, and insurers may also consider a car's ability to handle local weather conditions. On the contrary, cars with advanced safety features such as airbags and anti-lock brakes may qualify for lower insurance rates.
Credit History
Insurers may use credit-based insurance scores to help determine premiums. Consumers with poor credit history might face higher rates than those with good credit. This practice reflects statistical correlations between credit scores and insurance claim frequency.
Insurance and Claims History
Maintaining continuous insurance coverage can lead to lower rates. Gaps in coverage may result in higher premiums, as insurers view this as a potential risk factor. Drivers benefit from maintaining consistent coverage, even when changing vehicles or moving within the state.
A history of insurance claims often leads to increased premiums. Vehicle owners with recent or frequent claims will likely pay more than those without a claims history. Insurers view past claims as an indicator of future risk.
How To Save Money on Auto Insurance in North Dakota?
North Dakota drivers seeking to reduce their auto insurance costs can secure more affordable coverage without compromising protection by following the strategies below:
Increase Deductibles and Adjust Coverage
Deductibles significantly impact insurance costs for drivers. Choosing a higher deductible lowers monthly premiums. However, drivers should carefully consider their financial situation when selecting a deductible amount.
Adjusting coverage levels offers another avenue for savings. While maintaining adequate protection, drivers might consider reducing coverage on older vehicles.
Discounts and Incentives
Many insurance companies offer various discounts and incentives that can significantly reduce premium costs.
Bundling discounts are available when combining multiple policies, such as auto and home insurance, with the same provider. Furthermore, installing anti-theft devices in a vehicle can lower premiums by reducing the risk of theft.
Individuals should also look for providers that reward safe driving with discounts or offer incentives. These discounts can be earned through clean driving records or participation in safe driving courses.
Improve Credit Score
Insurers might use credit scores to determine insurance rates. Improving one's credit score can lead to lower premiums. Drivers should focus on paying bills on time and reducing overall debt to boost their credit ratings.
Practice Defensive Driving
Defensive driving proves beneficial in multiple ways. It reduces the likelihood of accidents and claims and leads to discounts. Some insurance companies offer premium discounts to drivers who complete approved defensive driving courses. Interested individuals should contact the DOT for course information.
Maintaining a clean driving record remains one of the most effective ways to lower insurance costs. North Dakota drivers who avoid accidents and traffic violations enjoy lower premiums than those with infractions on their records.
Check Insurance Premium Reduction Courses
North Dakota's Insurance Premium Reduction Courses provide another path to lower rates. Some agencies offer these courses to drivers with crash reports, allowing them to reduce their insurance premiums upon completion. However, not all insurance providers participate in this program.
What To Do After an Auto Accident in North Dakota?
After a car accident, drivers must take several important steps and make critical decisions. From ensuring safety at the scene to navigating insurance claims, understanding local laws, and managing potential impacts on future premiums, this information helps residents handle the aftermath effectively and protect their interests.
Here are the immediate steps to follow:
Assess for Injuries
Medical help should be called if anyone is injured, even if the injuries seem minor. Vehicles should be moved to a safe area if possible, and hazard lights should be turned on to alert other drivers. The police should be called, and the driver should remain at the accident scene, as the police report will provide valuable documentation for insurance claims.
Collect Details
Information should be gathered from all involved parties, including:
- Names
- Addresses
- Phone numbers
- Driver's license numbers
- Insurance company names
- Policy numbers
- Vehicle make and model
- License plate numbers
Document the Scene
Photos of the vehicle damage and accident location should be taken. Weather conditions, time of day, and relevant traffic signs or signals should be noted. Witness statements should be obtained, and the names and contact information of witnesses should be collected, as their accounts may be crucial later.
Do Not Admit Fault
Accident details or admissions of fault should not be discussed with anyone except law enforcement and the insurance company.
How To File an Insurance Claim?
Policyholders should contact their insurance provider promptly after an accident. Those who purchased insurance through an agent should notify the agent first. The agent will file the claim with the company and advise on the next steps.
Those who buy insurance directly from a company can call the insurer's claims hotline to report the incident.
North Dakota operates under a no-fault insurance system. Regardless of who caused the accident, injured parties should file claims with their own insurance companies for medical expenses and lost wages.
To make a claim against another driver's insurance, contact their company directly. Provide them with the accident details to initiate the claims process.
After filing a claim, the insurance company will take the necessary steps to process it. Then, policyholders meet with an adjuster to assess the damage for vehicle damage claims. They may need to obtain repair estimates from auto shops or choose a provider-preferred repair facility.
If the vehicle is severely damaged, the insurer uses ACV, which is the market value before the accident. Then, they compare it with prices in the local market, dealers, or the NADA (National Automobile Dealers Association). Policyholders can accept the ACV payout and surrender the vehicle. Alternatively, they can keep the vehicle and receive ACV minus salvage value.
If there are disagreements about the claim settlement, policyholders can file a complaint with the ND Insurance Department. For complex claims, seeking legal advice may be beneficial.