North Dakota Car Insurance Laws
In order to register and operate an automobile in the Peace Garden State, residents must first obtain a minimum amount of coverage designed to ensure that motorists are able to pay for injuries or damages if at-fault for an accident. This includes liability insurance for bodily injury with a limit of $25,000 for one person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident. Additionally, residents must carry uninsured motorist protection with minimum limits of $25,000 per person and $50,000 per accident in addition to underinsured motorist protection with the same limits.
For greater auto insurance coverage residents must also have basic no-fault protection, also known as Personal Injury Protection (PIP), with a limit of $30,000 per person to cover certain forms of economic loss as the result of an accident, regardless of who is at-fault. Because accidents can sometimes occur while traversing North Dakota's 86,609 miles of public roads, residents are encouraged to not only meet these basic requirements, but exceed them. Purchasing a policy with higher limits is oftentimes an easy and cost effective way of obtaining greater economic protection and being better prepared for more severe accidents. With an average expenditure of $503 - the cheapest in the nation according to the National Association of Insurance Commissioners - residents can usually find adequately cheap policies with improved protection with little effort.
With North Dakota auto insurance so readily available and within affordable range for many different motorists, it's ill advised for any resident vehicle owner to forgo coverage and risk the consequences. If caught without the proper vehicle protection, a driver could be convicted of a class B misdemeanor and could face fines of up to $150. In the event that an uninsured motorist is involved in an accident, an estimated 9% of motorists within the state, the consequences can be even greater. In the event of such an occurrence, the offending driver may be given 14 points on their driving record, which may result in one's license being suspended.
At times, a resident may be forced to borrow another driver's automobile while their own is either unavailable or broken down. In such a situation the driver borrowing the car may still be covered, depending on the situation. Most policies will treat this as a non-owned vehicle and may provide the same automobile protection. In the event that the owner of the car has physical damage coverage, then it is likely the owner's policy will be considered primary. In the event of an accident the borrower's policy would usually only take effect if the owner's policy limits are exceeded. Because every situation is unique, however, drivers are encouraged to contact their coverage provider with any car insurance questions before operating a borrowed vehicle.