If you're driving in North Dakota, you need to understand something important: this is a no-fault state. That means when an accident happens, your insurance pays your bills first—regardless of who caused the crash. It's different from most states, and it affects both what coverage you're required to carry and how much you'll pay. The good news? North Dakota has some of the most affordable auto insurance rates in the country. Let's break down exactly what you need to know.
What Auto Insurance Coverage Does North Dakota Require?
North Dakota requires more coverage types than many other states. You'll need four different components to legally drive here. First is liability coverage at 25/50/25 limits—that's $25,000 for injuries to one person, $50,000 for injuries per accident, and $25,000 for property damage. This covers harm you cause to others.
Second is Personal Injury Protection, or PIP. This is the cornerstone of North Dakota's no-fault system, and you must carry at least $30,000 per person. PIP covers your medical bills, hospital expenses, lost wages, and even costs like childcare or house cleaning if you're injured in an accident. The key thing to understand: PIP pays out regardless of who caused the crash. Your insurance handles your injuries; their insurance handles theirs.
Third is uninsured and underinsured motorist coverage (UM/UIM). This is also mandatory in North Dakota at the same 25/50 limits as your liability coverage. It protects you if you're hit by someone who either has no insurance or not enough to cover your injuries. Given that roughly 13% of drivers nationwide are uninsured, this protection matters.
One thing PIP doesn't cover: pain and suffering. Under North Dakota's no-fault system, you can't sue for non-economic damages like emotional distress in most cases. However, you can absolutely hold the at-fault driver responsible for vehicle damage. No-fault only applies to injuries—your car repairs work just like they do in other states.
How Much Does Auto Insurance Cost in North Dakota?
Here's where North Dakota drivers catch a break. The average cost of full coverage auto insurance in North Dakota is around $90 per month, or about $1,080 per year. That's significantly lower than the national average. If you only need minimum coverage, you're looking at roughly $350-$475 annually. North Dakota ranks 10th nationwide for affordability, with premiums running 26% below the national average for full coverage.
Why so affordable? North Dakota has lower population density, fewer accidents per capita, and less traffic congestion than many states. Rates did decrease by 5% in 2024, though they're projected to tick up about 2% in 2025. Still, you're paying far less than drivers in high-cost states like Michigan or Florida.
The cheapest insurers in North Dakota tend to be GEICO (around $61 monthly for full coverage) and Farm Bureau (about $73 monthly). But your actual rate depends on your driving record, age, credit score, vehicle type, and where you live within the state. Shop around—quotes can vary by hundreds of dollars for the same coverage.
What Happens If You Drive Without Insurance?
Don't skip insurance in North Dakota. Driving without the required coverage is a class B misdemeanor. For a first offense, you're facing a fine between $150 and $1,000, plus license suspension until you prove you're insured. Your plates stay suspended, and you'll need to get your insurer to file an SR-22 form—a certificate proving you carry insurance—which typically raises your rates because insurers view you as high-risk.
A second offense within one year gets much worse: fines from $300 to $1,500, possible jail time up to 30 days, indefinite license suspension, and your vehicle's plates will be impounded until you pay a $20 fee and show proof of insurance. North Dakota also has a "no pay, no play" law. If you're injured in an accident while driving uninsured—and you have a prior conviction for driving without insurance—you can't recover non-economic damages from the at-fault driver. The penalties add up fast, and they make driving legally much cheaper by comparison.
Understanding No-Fault Insurance in Real Life
The no-fault system can feel confusing at first. Here's a real-world example: you're rear-ended at a stoplight. In a traditional fault-based state, you'd file a claim with the other driver's insurance for your medical bills and lost wages. In North Dakota, you file with your own PIP coverage first. Your insurer pays your medical expenses, rehabilitation costs, and wage replacement up to your $30,000 limit.
The benefit? Faster payment. You don't wait for fault determinations or legal wrangling. Your bills get paid while you recover. The downside? You can't sue for pain and suffering unless your injuries meet certain thresholds. But you can still pursue the at-fault driver's insurance for vehicle damage, deductible reimbursement, and other property losses. And if your medical bills exceed your PIP limits, you can then pursue the at-fault party for the remainder.
Should You Buy More Than Minimum Coverage?
State minimums keep you legal, but they might not keep you financially safe. Consider this: the minimum $25,000 bodily injury limit per person won't go far if you cause a serious accident. Medical bills for major injuries easily exceed that amount. If you have assets worth protecting—a home, savings, retirement accounts—you want higher liability limits. Many experts recommend at least 100/300/100 coverage, and it doesn't cost as much as you'd think to upgrade.
Also consider increasing your PIP coverage beyond the $30,000 minimum. If you're seriously injured and miss weeks or months of work, that limit can disappear quickly between medical bills and lost income. Optional coverages like comprehensive and collision make sense if your vehicle is worth more than a few thousand dollars. Roadside assistance and rental reimbursement are cheap add-ons that save headaches when you need them.
How to Get the Best Rate on North Dakota Auto Insurance
First step: compare quotes from at least three insurers. Rates vary dramatically between companies for identical coverage. Ask about discounts—most insurers offer price breaks for bundling policies, good driving records, defensive driving courses, anti-theft devices, good student grades, and paying your premium in full upfront.
Maintain a clean driving record. Accidents and violations spike your rates for three to five years. Improve your credit score if possible—most insurers use credit-based insurance scores to set rates. Consider raising your deductibles on comprehensive and collision coverage. Going from a $500 to $1,000 deductible can lower your premium significantly. Just make sure you can afford the higher out-of-pocket cost if you need to file a claim.
Review your coverage annually. Your needs change, your vehicle depreciates, and insurer pricing shifts. What was the cheapest option last year might not be this year. North Dakota's affordable rates give you room to buy solid coverage without breaking the bank—take advantage of that.
North Dakota's no-fault system and mandatory PIP coverage might seem complicated at first, but they're designed to get you paid faster when accidents happen. Combined with the state's below-average insurance costs, you're in a good position as a North Dakota driver. Make sure you understand your requirements, shop around for the best rate, and consider buying more than minimum coverage if your financial situation warrants it. Stay legal, stay protected, and drive safely.
