Auto Insurance in North Dakota

Residents of North Dakota continue to enjoy some of the most beneficial auto insurance prices throughout the entire United States. While the average cost of a US policy is $1,735, motorists in the Peace Garden state enjoy an average saving of around $360 each year. In 2009, the average premium cost just $1,375 even though insurance figures in North Dakota rose by 14% from the previous twelve month period.

North Dakota uses the no fault system as a means of settling auto insurance claims so that when an accident occurs, the drivers involved actually receive settlements from their own insurance carrier irrespective of who was at fault. Although this doesn’t completely eliminate the risk of legal action completely, most accidents will be adequately covered by a basic policy.

The actual minimum levels of auto insurance in North Dakota are actually quite extensive even though the cost of a policy is much lower than those found in many other states. The minimum levels of auto insurance are set out as follows:

  • $25,000 of bodily injury liability per person
  • $50,000 of bodily injury liability per accident
  • $25,000 of property damage coverage
  • $25,000 of protection against uninsured and under insured motorists per person
  • $50,000 of protection against uninsured and under insured motorists per accident
  • $30,000 of personal injury protection

The sparse geographical layout of North Dakota is one of the most influential factors of insurance prices being so low. Most major carriers operate on a factor of risk and because there are less built-up areas in North Dakota than there are in other US states, the likelihood of an accident occurring is actually lessened and this is reflected in policy prices.

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