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North Dakota Insurance Laws

North Dakota Insurance Laws require its vehicle owners to possess an auto insurance policy to drive legally in the state. A vehicle owner must have liability coverage, uninsured and underinsured motorist coverage, and no-fault insurance coverage. The mandated coverages and state insurance minimums are detailed below.

Minimum Insurance Limits in North Dakota:

• Bodily Injury Liability Coverage: $25,000 per injured person to a total of $50,000 per accident. The $25,000 is the maximum compensation to be paid to one person in any single accident. The $50,000 is the maximum compensation to be paid out to all persons involved in any single accident. Bodily injury liability coverage will pay for the bodily injury the insured has caused other parties involved in the auto accident.

• Property Damage Liability Coverage: $25,000 limit per any single accident. Property damage liability coverage will pay for the expenses to repair or replace the damaged property of another party involved in an auto accident with the insured. This coverage will also pay for damages to a rental car the insured has used on an interim basis.

• Uninsured Motorist Coverage: $25,000 per injured person to a total of $50,000 per accident. Uninsured Motorist Coverage will pay for the bodily injury the insured has sustained from an auto collision with an uninsured motorist. Uninsured Motorist does not cover for damages to the insured’s vehicle.

• Underinsured Motorist Coverage: Underinsured Motorist must carry the same coverage as that of the Uninsured Motorist coverage. UM coverage will pay for the bodily injury the insured has sustained from an auto collision with a motorist  whose auto insurance policy is not sufficient to cover for the all the insured’s damages. The other party’s insurance provider will pay up to the limits of his coverage and the UM coverage of the insured will pay for the remainder.

• Personal Injury Protection Coverage: $30,000 per injured person in any single accident. This coverage is also known as the Basic No-Fault Coverage. PIP coverage will provide compensation for the insured’s economic loss (examples are work loss and medical loss) sustained from the accident. This amount is payable to the insured, regardless of fault.

It is mandated by North Dakota Insurance laws that motorists in the state are to carry auto insurance and are to provide proof of insurance when requested by a traffic enforcer. Failure to do so is considered a Class B offense in the state of North Dakota. It is punishable with a fine of no less than $150. If you get into an accident while driving without the required insurance, then you will gain 14 points against your driver’s license. This will result to a possible suspension of your driver’s license.

North Dakota follows a No Fault Policy. In case of an accident, given a No Fault Policy, each of the parties involved in the accident will be covered by their own insurance provider, without regard as to who was at fault for the collision. It is because of this that North Dakota Insurance laws require its motorists to carry PIP coverage. There are exemptions to the No-Fault Policy. When an individual has sustained very severe losses, he is permitted by state law to seek compensation from the liable party through a court of law.

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