North Dakota car insurance laws and requirements: What is changing in 2026

North Dakota car insurance laws

North Dakota law requires drivers to maintain at least 25/50/25 in car insurance coverage. In North Dakota, drivers are also required to carry UIMBI, UMBI and PIP. This insurance helps pay for injuries and property damage when you cause an accident. However, if accident expenses exceed the policy limits, you will be responsible for paying the remaining costs yourself.

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, a serious crash can generate medical and repair bills that exceed the state minimum limits. Once the available coverage is exhausted, the at-fault driver will be personally responsible for the unpaid amount.

North Dakota car insurance requirements

Drivers in North Dakota must carry the coverage required by state law, including liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. and any other mandatory protections. The minimum liability limits are 25/50/25. These limits help pay for injuries, property damage, and other required accident-related expenses covered under North Dakota law. In North Dakota, drivers are also required to carry UIMBI, UMBI and PIP

North Dakota requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

North Dakota liability minimums are 25/50/25.

Personal injury protection (PIP). Personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. pays medical costs, such as doctor visits, childcare expenses, and lost wages, for you or your passengers injured in an accident. PIP may be required for drivers who live in at-fault states.

North Dakota PIP requirements are $30,000.

Uninsured/Underinsured motorist coverage (UM/UIM). Uninsured and underinsured motorist coverageAn auto insurance coverage that pays for injuries or damage if you're in an accident with a driver who has no insurance or not enough insurance. helps pay for your medical costs and property damage if the at-fault driver has little or no car insurance. Your insurer would cover expenses up to your limits in addition to any payments from the other insurer.

North Dakota requires uninsured motorist coverage of 25/50.

The average cost of a minimum coverage policy is $354. However, American Family has the lowest minimum car insurance rates, averaging $164.

American Family has the lowest minimum car insurance rates, averaging $164.

The table below shows the average rates of the top insurers for minimum coverage in North Dakota.

North Dakota car insurance cost for minimum coverage limits

The average cost of minimum coverage car insurance in North Dakota is $354. American Family offers the cheapest average policy at $164 annually. However, your actual rate will depend on the company you choose and personal factors such as your age, address, and driving record.

Are the minimum coverage requirements changing in 2026 in North Dakota?

North Dakota car insurance requirements will not change in 2026. Drivers who already carry the state-required minimum coverage do not need to update their policies. If requirements change later, insurers will inform affected policyholders and explain any necessary coverage or premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. adjustments.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated coverage values and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

What does minimum car insurance cover in North Dakota?

Minimum car insurance in North Dakota covers certain accident-related expenses up to the limits required by law. Liability coverage pays for injuries and property damage you cause to others. These coverages pay for injuries, property damage, and other losses included under North Dakota's minimum insurance requirements.

North Dakota requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

North Dakota drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

North Dakota is a no-fault state, meaning your insurer pays for your injuries and damages regardless of who caused the accident. The law requires you to carry personal injury protection (PIP) to pay medical costs, such as doctor visits and prescriptions.

Uninsured and underinsured motorist coverage is also required. Uninsured motorist coverage helps pay for coverage when the at-fault driver doesn't have car insurance, and underinsured coverage assists when the at-fault driver doesn't have enough car insurance to cover injury and property damage costs. Without these coverages, you would have to pay for medical and repair costs that the other driver's insurance didn't cover. You may be able to opt out of this coverage.

How much car insurance is enough in North Dakota?

The amount of car insurance you need in North Dakota depends on your assets, income, savings, and vehicle. Higher liability limits can protect you from lawsuits and major out-of-pocket expenses. Drivers with financed or leased vehicles will also need collision and comprehensive coverage.

Drivers with substantial savings, property, or other assets should avoid choosing limits that are too low. If you cause an accident that exceeds your policy limits, the injured party may pursue your income or assets for the remaining costs.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease, you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

North Dakota penalties for driving without car insurance

Driving without required insurance in North Dakota may lead to fines, license suspension, registration penalties and more expensive insurance in the future. Repeated violations may result in harsher consequences. If you cause an accident without coverage, you will also have to pay medical bills and property damage costs yourself.

Failing to carry North Dakota car insurance has penalties, including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

North Dakota minimum coverage cost by age group

Younger drivers tend to pay the most, and rates decline with age and experience. American Family is the cheapest option for teens, while American Family has the lowest average adult rate

The table below breaks down the cost of car insurance for various age groups. American Family has the best rates for teens, with minimum coverage averaging $631. American Family offers the cheapest coverage for adults at $165.

Additionally, females and males pay different rates. The average rate for a 40-year-old female is $361, and the average rate for a 40-year-old male is $347, a difference of $14.

North Dakota minimum coverage cost by city

Minimum coverage is cheapest in Wahpeton, where drivers pay an average of $328. West Fargo has the highest average minimum coverage rate in North Dakota at $404. Differences in traffic, accident claims, theft, and local repair costs can cause premiums to vary from one city to another.

The table below shows average minimum coverage rates for cities in North Dakota.

Optional car insurance coverage in North Dakota

The minimum coverage required in North Dakota does not protect your vehicle against most types of damage. Optional insurance, such as collision and comprehensive, will pay to repair or replace your car. Rental reimbursement, roadside assistance, and gap coverage can also help with costs that are not included in a minimum liability policy.

Drivers may choose optional coverages such as:

• Collision coverage. Collision coverage pays for damage to your vehicle if you cause an accident.
• Comprehensive coverage. This coverage pays for damage to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
• Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
• Roadside assistance coverage. If you run out of gas, need a tire changed, or have a dead battery, roadside assistance will send someone to help.
• Gap coverage. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Why do limits change?

State lawmakers increase minimum car insurance limits when existing requirements no longer reflect current accident expenses. Rising medical bills, repair costs and vehicle values can make current limits insufficient. Raising the required coverage gives accident victims access to more insurance money and reduces the amount drivers pay.

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