North Dakota Car Insurance [Rates + Cheap Coverage Guide]

Does your car insurance cost too much? Are you spending your hard-earned money on insurance costs, instead of something fun like that family trip to Niagara Falls you’ve always wanted to take?

Whether it’s monthly, quarterly, or biannually, those bills from the insurance company never seem to stop coming. If you’re like us, receiving a letter from your insurance company is never a good thing. Consumers in North Dakota paid an average of $773.30 for car insurance in 2015.

Were you one of them?

Or did you pay a lot more? Nobody likes to pay too much for anything, let alone, paying too much for car insurance. But how do you get started? What if all of the information you needed to save money on your car insurance was in one spot?

Would you invest the time? What if it would save you money? A LOT of money. I bet you would. Everything you need to know about buying cheap auto insurance in North Dakota is in the comprehensive guide. Enter your zip code below to get started.

North Dakota Car Insurance Coverage and Rates

The median household income in North Dakota in 2017 was over $61,843, and drivers, on average paid over $773 for car insurance. Now, we’re no math genius or anything, but however you work it out, consumers in the Peace Garden State are spending way too much money on car insurance.

There has to be a better way.

Below, we have provided information and helpful advice so you can get the best coverage options for your needs.

Okay, you’ve read the numbers, but what do they mean?

What is 25/50/25?

Bodily injury?

Accidents?

We hope you never have to deal with any of these situations or end up in one of these:

But if you do, the basic coverage requirements in North Dakota which all motorists must have for liability insurance are:

• $25,000 to cover the death or injury of one person
• $50,000 to cover the death or injury of more than one person
• $25,000 to cover property damage

Liability insurance pays all individuals — drivers, passengers, pedestrians, etc. — who are owed compensation for property damage and/or injuries resulting from a car accident that you or anyone under your policy causes. If you cause a wreck, liability insurance pays everyone affected by the accident.

– Required Forms of Financial Responsibility in North Dakota

What is financial responsibility? Basically, financial responsibility is proof that you have North Dakota’s minimum liability coverage. State law requires every driver and owner of a vehicle to have proof of financial security at all times.

Here are a few acceptable forms of proof of financial security in North Dakota:

1. Valid liability insurance ID cards
2. Copy of your current car’s insurance policy
3. Valid insurance binder (a temporary form of car insurance)
4. Picture of proof of insurance on your smartphone

– Premiums as Percentage of Income in North Dakota

In North Dakota, the per capita disposable income is $34,041. On average, residents spend $773 a year on car insurance. To put this amount in perspective, the countrywide, annual average for car insurance is $981. This means people in North Dakota pay less than the countrywide average.

Folks in North Dakota pay $200 less than the national average, and overall, compared to states like Michigan and New Jersey that have above average rates, that savings over time, add up to thousands of dollars.

– Core Coverage in North Dakota

The National Association of Insurance Commissioners, a leading source on insurance coverage, is the source for the above data. Car insurance rates in North Dakota will likely be higher for 2019.

– Additional Liability Coverage in North Dakota

To gauge the financial health of insurance companies, you should look at its loss ratios. Loss ratios are explained as: the money insurance companies pay out on claims compared to the money they take in on premiums is the loss ratio.

Check out the loss ratio for these two types of coverage in North Dakota.

You may want to consider adding additional coverage to your plans, to avoid paying out of pocket in the event of an accident. Without this additional coverage, medical bills and payments could reach well into the thousands of dollars for those affected by an uninsured driver.

– Add-ons, Endorsements, and Riders

No one wants to be in an accident, but if you are, do you have enough protection? Have you considered adding extra coverages to your policy? Do you even know what’s out there?  Choosing from a list of options can be daunting, and we know you want the best options for your family at the best price.

To help you decide, we’ve made a list of affordable options to add to your policy. Click on the selections below to learn more about them:

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Rental Reimbursement
• Emergency Roadside Assistance
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Low-Mileage Discount
• Usage-Based Insurance

Any of the above coverages would be great to add to a policy, so make sure to discuss any options you are interested in with your insurance carrier.

–  Male vs. Female Rates

Let’s talk about sex? No, not that kind, but you may be surprised to learn that gender plays a large role in deciding how much your car insurance rates are? In fact, females typically pay more than males for car insurance.

Actually, gender discrimination in car insurance rates is such a problem that California and other states banned gender discrimination and created gender-neutral insurance plans.

Below, we show you rates that various folks in North Dakota pay for car insurance.

As you can see from the table, in some cases, teen drivers pay thousands more than older drivers do for car insurance.

In addition to gender and age, where you live can affect your car insurance rates. We’ve collected data on the least and most expensive zip codes, so search to see where your zip code lands on the list. You’ll also see providers’ costs next to your zip code, providing a helpful snapshot into what you should be paying.

We’ve also collected data on car insurance rates by city. Below is a list of the least expensive and most expensive cities for auto insurance. Simply enter your city in the search box to see your city’s cost.

As you can see from the table, where you live can impact your wallet when purchasing auto insurance. Folks in rural areas pay hundreds less than those in cities like Fargo and Grand Forks.

North Dakota Car Insurance Companies

Can you really save money with a 10-minute phone call? We’ve heard this and other funny commercials from insurance companies so often we can sing their jingles by heart.

Car insurance is mandatory in all 50 states except one, New Hampshire, so why do insurance providers spend so much on advertising and trying to be funny? Are they hiding something? What’s really behind the catchy jingles of most insurance companies?

But who wants to spend time doing all of that searching? That’s why we’ve done all of the work for you and researched the best insurance carriers in North Dakota, so you can make the best choice for your situation. We’ve looked at companies’ financial ratings, AM’s best ratings, and which companies have the most complaints.

Keep reading to learn about North Dakota’s auto insurance providers.

– Ratings of the Largest Car Insurance Companies in North Dakota

What does an A.M. Best rating mean? Basically, an A.M. Best rating measures the financial health of an insurance company.

The table below shows the financial rating of the top auto insurance providers in North Dakota.

A good financial rating means the provider has the funds available to pay any claims. But customer service is also an important part of any company, from restaurants to car insurance companies. That’s why we’ve looked at companies with the best customer satisfaction ratings.

– North Dakota’s Insurers with the BEST Ratings

Country Financial ranks near the top of the list — showing that Country Financial is great at customer satisfaction.

One thing to consider: cost shouldn’t be your only concern when searching for car insurance. You should also be looking at how the insurance company treats its customers and resolves claims and complaints.

– Companies with the MOST complaints in North Dakota

The Department of Professional and Financial Regulation collected data on complaint ratios for North Dakota’s car insurance providers.  The complaint index means the following:

• Average: complaint index of one
• Better than average: complaint index LESS than one
• Worse than average: complaint index GREATER than one

Keep in mind that a high complaint index doesn’t necessarily mean you should avoid a company. Make sure to also look at a company’s customer satisfaction ratings because how a company deals with complaints is also important.

The ratio compares a company’s number of complaints for every 1,000 policies written. The smaller the number, the better the company is performing compared to its competitors.

– North Dakota Car Insurance Rates by Company

In order to save money on car insurance, make sure you are shopping around for rates. Below is information about rates across different companies.

Looking at different companies can save a lot of money. For example, Progressive Northwestern is nearly $600 BELOW the state average, which, over time, could add up to over several thousand dollars.

– Cost of Different Annual Commutes by North Dakota Companies

At some companies, how far you drive each day influences your insurance rates.

Most company rates don’t change when the drive is shortened to a 10-mile commute, except for Geico and Allstate, both of whom have rate reductions over a $100.

Up next, a break-down of coverage level rates in North Dakota.

– Coverage Level Rates

Do you want better coverage? You might have to pay more. But don’t let higher rates discourage you from purchasing better coverage, as some companies have economical increases in rates. For example, the data below shows Allstate has only a $300 increase from low to high coverage.

– Credit History Rates

The quality of your credit score impacts your insurance rates. In North Dakota, the average credit score is 697, which is above the countrywide average of 675.

Basically, this means residents in the Peace Garden State have a better chance of getting great rates because of their above-average credit scores.

As you can see from the table above, poor credit scores can add hundreds to your annual cost. A bad credit score at Progressive raises your annual cost from $3,186 to $4,187.

– North Dakota Rates by Carrier and Driving Record

A clean driving record is the EASIEST way to keep rates down. As you can see from the information below, at Nationwide, just one speeding violation can raise your rate by over $250.

A better record equals better rates. We encourage you to obey posted speed limit signs and NOT drink and drive.

– The 10 Largest Car Insurance Companies in North Dakota

Here’s a look at the top 10 largest insurance companies in North Dakota.

– Number of Property and Casualty Insurance Companies in North Dakota

Domestic insurance means a company is formed under North Dakota’s state laws, whereas a foreign provider is formed under the laws of any state in the U.S.

North Dakota Laws

Do you like to dance?

What about hats?

Well, in North Dakota you can’t dance and wear a hat at the same time. We’re unsure if the law is applicable to professional troupes, but since most of us aren’t professional dancers, you would be better off to remove your hat, if you decide to trip the light fantastic.

Another unsual law in North Dakota states: It is prohibited for bars or restaurants to serve both beer and pretzels at the same time.

Well, darn. At Cheers, everyone may have known your name, but forget getting any pretzels in Fargo.

Pass the popcorn, please.

We know, state laws are confusing and vary from state to state. New residents may receive tickets for laws they didn’t know existed.

We’ve done the work for you to help you uncover what the laws are, so check out our roundup of North Dakota’s driving laws.

– North Dakota’s Car Insurance Laws

Insurance companies are subject to certain rules and regulations.

Let’s look at some of the specific laws for consumers regarding car insurance.

Insurance companies in North Dakota are not allowed to set rates anyway they see fit.  All rates and rate increases are regulated by the National Association of Insurance Commissioners (NAIC).

– High-Risk Insurance

Drivers in North Dakota, who have committed certain infractions such as drug or alcohol offenses, may have their driver’s license revoked. In order to purchase insurance, you will be required to obtain proof of future financial responsibility in the form of an SR-22.  You must maintain this proof for three years.

– North Dakota’s Windshield and Glass Repair Laws

Some insurance companies may offer windshield replacement with comprehensive coverage, but North Dakota laws have no regulations that are unique or specific to windshields. You may insist that your auto insurer use original manufacturer parts as a replacement after a crash, but you may be forced to pay the difference.

Compare car insurance rates now and see which company offers you the coverage you want at the best price.

Enter your zip code in our FREE online search tool to get started.

– Automobile Insurance Fraud in North Dakota

What is automobile insurance fraud?

• Creating a claim for damages or injuries that NEVER occurred (such as faking an accident)
• Adding “extra” costs onto a claim that is legitimate

Committing insurance fraud can result in fines and/or jail time.

– Statute of Limitations

If you are in a car accident in North Dakota, there is a statute of limitations if you want to file a claim.

– North Dakota’s Vehicle Licensing Laws

We all love the feeling of being on the open road, windows down, enjoying the sights, sounds, and smells of our favorite places.

Whether you’re heading to see the original roughrider’s legacy on display at Teddy Roosevelt National Park or traveling to Bismarck to check out the urban scene, you’ll want to make sure those lights you see in your rearview mirror are the Northern Lights and not from a police officer pulling you over for speeding, or worse, driving while uninsured.

– Penalties For Driving Without Insurance

If you are arrested for driving without insurance in North Dakota, you can be fined $1500 or more and/or spend 30 days in prison for the first offense. You can also have 14 points assessed against your license and possible suspension. Drivers must obtain proof of insurance with a notation on their license for one year which requires a $50 fee.

Don’t risk incurring these penalties, make sure you have the required minimum coverage for your situation.

North Dakota is one of the states that now allow drivers to use their smartphone to show proof of insurance. If you have been involved in an accident or pulled over, law enforcement will ask to see your insurance information.

Here are two acceptable ways:

1. Insurance Card
2. Electronic Proof of Insurance

– Teen Driver Laws

Teenagers in North Dakota can apply for a learner’s license (also known as a learner’s permit) at age 14.

After teenagers have gone through the mandatory learner’s license period and met all the requirements, they can apply for a regular or restricted license.