Motorists in North Dakota currently enjoy some of the lowest auto insurance costs in the United States. Last year, the average premium price was just $1,375 even though insurance costs rose by a massive 14% on the previous year. This figure is actually $360 less than the national average and much of this is down to the geography of North Dakota. Because the area is less densely populated than many other states, insurance carriers lower their prices because of the lower likelihood of an accident actually occurring.
North Dakota operates under the no fault system so if a road traffic accident takes place, the insurance company of each individual driver will cover the costs of liability, property damage and personal injury. Even though auto insurance costs in North Dakota are still relatively inexpensive compared to other areas, the actual minimum levels of coverage are actually quite extensive.
Each driver must carry a minimum of $25,000 worth of bodily injury liability cover per person and $50,000 worth of bodily injury liability per accident. Additionally, there is a $25,000 limit for property damage cover. North Dakota motorists must also take out protection against uninsured or under insured motorists to the level of $25,000 per person and $50,000 per accident. Furthermore, $30,000 worth of personal injury protection must also be purchased.
This actually makes North Dakota one of the most demanding states in terms of auto insurance coverage even though premiums are much lower in price. Because of this, many residents of the Peace Garden State are turning to online facilities such as price comparison websites to make further savings on their insurance costs.