Is North Dakota a No-Fault State for Auto Insurance?

North Dakota is a no-fault state for auto insurance purposes. Following an accident, a driver’s own insurance company will pay for damages incurred by the driver and the occupants of his or her vehicle. For this reason, buying Personal Injury Protection (PIP) coverage is required by law. The limit chosen for this protection determines how much coverage a car insurance customer has in place.

Along with the PIP coverage, drivers in North Dakota are required to have some liability coverage in place. If an injured person’s damages meet the threshold set by the state, he or she does have the right to sue. The minimum level of bodily injury liability coverage is $25,000 for a single accident victim and $50,000 to compensate all the victims of the same accident. This part of the insurance policy pays for medical bills, rehabilitation cost and lost wages incurred by the injured person.

Property damage coverage of at least $25,000 must also be put in place to be used to pay for the cost of paying for the cost of repairing the other driver’s vehicle. The property damage protection also covers repairs to public property damaged or destroyed in the accident, including sign posts, guard rails, fences, and light stands.

North Dakota car insurance buyers can choose to buy a higher level of coverage if they wish. It’s a good idea to do so, since a serious accident could result in a level of damages higher than the policy limit.