North Dakota Auto Insurance Basics


North Dakota, just as each state, has its own mandatory insurance coverage that is required of their drivers. The mandatory coverage is only a part of the automobile insurance that is available to protect you, your family and other drivers on the road. Here is some basic information to help you in deciding the levels of coverage you may want to include in your auto insurance policy.

When you are purchasing your automobile insurance policy, keep in mind the six major areas of coverage. The minimum levels of coverage vary from state to state. In general, these areas are: Bodily injury liability, Property damage liability, Personal Injury Protection, Collision, Comprehensive, Uninsured/Underinsured motorist’s coverage.

The Insurance Commissioner in the North Dakota requires drivers to carry bodily injury liability, property damage liability, uninsured motorist coverage, underinsured motorist coverage and no-fault coverage.

Keep in mind that these minimums are what are required by law and are the highest amount that your insurance company will pay out due to injuries or death to you or any other people involved in an accident, as well as any property damage. These amounts are only what are required by the state and you can certainly select higher levels of coverage.

Bodily injury liability covers any damages that you may have caused another person if an accident were to occur. This coverage includes medical bills and loss of income. Property damage liability covers the repair and/or replacement of any property that was destroyed as a result of an accident.

Uninsured motorist coverage pays for any damages that are a result of an uninsured motorist or a hit and run driver. And underinsured motorist coverage comes into play if the other driver, who is at fault, does not have enough insurance to cover you. However, this coverage is not used to cover damages to your car.

You will probably be required to carry collision and comprehensive coverage if your vehicle was financed and you still owe money on it. If you do not provide adequate levels or proof of insurance, the lender will take matters into their own hands and find insurance coverage for you and bill you for it in addition to your regular car payment.

Your collision insurance will cover any damage to your car that was a result of hitting another vehicle, a tree, a telephone pole, etc.  Comprehensive coverage protects the value and replacement of your car in the event that it is damaged as a result of anything other than an accident, for example if your car is stolen, someone breaks into it or there it suffers flood damage.

Every vehicle that is registered and operates on the public roads in North Dakota must have insurance, including snowmobiles. If you are stopped by a law enforcement officer and cannot provide proof of insurance it is a class B misdemeanor.