North Dakota is rich in minerals and farmlands, the Red River Valley is one of the most fertile agricultural areas in the world and the Great Plains are filled with valleys and rolling hills. North Dakota gets a lot of snowfall that is hazardous for drivers on the roads. As a result, residents tend to pay higher North Dakota auto insurance premiums than most states. Even though the North Dakota auto insurance rates dropped by $218.00 on average in 2007, residents of North Dakota need to carry more than the basic auto insurance as mandated by their State.

North Dakota Auto Insurance Requirements

In an effort to keep auto insurance costs down and to avoid car insurance accident claims from clogging up the courts, North Dakota became a no fault car accident state.

All no Fault States mandate that their motorists carry Personal Injury Protection to pay the costs of medical expenses, loss of income, and death benefits for the insured. If the driver already carries a good health insurance plan then the cost for PIP will not be as high, meaning that North Dakota auto insurance companies can sell them lower levels of PIP coverage.

Even with the no fault insurance, if the expenses incurred by the driver at fault is really high, the no fault coverage will not pay it. Therefore North Dakota drivers must also carry Bodily Injury and Property Damage Liability coverage. They must maintain at least the basic state required limits, which are set at: 25/50/25.

• Bodily Injury Liability – The North Dakota auto insurance company will pay out up to $25,000 for medical expenses to a passenger in the other car which were sustained as a result of an accident the insured had caused.
• A total amount of $50,000 will be paid out for more than two people injured in the other car.
• Property Damage Liability – The North Dakota auto insurance company will pay out as much as $25,000 for damage to public property, private property, and damage to the other driver’s vehicle.

Of course, these are the minimum requirements set by law, however, North Dakota does recommend that its driver’s carry higher levels of liability insurance to cover the exorbitant medical and property damage costs in big accidents.

North Dakota also advises that their insured carry Comprehensive and Collision insurance in order to protect themselves if the at fault driver does not have the insurance to cover their damages, or if the insured is the at fault driver at which time funds would be available to cover the damages they caused to their own vehicle in the accident.

North Dakota also requires their motorists to carry Uninsured/Underinsured Motorist protection. UM North Dakota auto insurance coverage will protect the motorist against a hit and run, or from out of state as well as in state drivers who do not carry enough insurance, to pay for the damages they caused but were not able to pick up.