What are the North Dakota Auto Insurance Markets?
When a coverage provider in North Dakota writes an auto insurance policy, it usually bases the driver's premium on how likely they are to file a claim in the future. To easily determine this, many vehicle owners are placed into specific categories, or markets, which correspond to a certain amount of risk. Drivers can be placed into a non-standard, standard, or preferred market, but residents are capable of moving between these categories by either maintaining a clean record for an extended period of time or by being involved in accidents or receiving multiple citations.
The majority of residents who purchase North Dakota auto insurance are placed into the standard market, which represents individuals with fairly clean driving records. Many of these residents drive safer automobiles that are commonly suited for families, and they also typically maintain reasonably good credit scores, which can often have an impact on policy prices. ND vehicle owners with exceptional driving records, credit scores, and have a low probability of filing a claim, are generally placed into the preferred market and often pay less expensive premiums in comparison to the other categories.
Residents in the non-standard market generally pay higher premiums as the result of poor driving records. People who have been in multiple accidents or have been convicted of certain offenses, such as driving while under the influence, may have difficulty locating an affordable policy and may have to obtain high risk car insurance to comply with North Dakota's vehicle coverage requirements. Sometimes younger or inexperienced motorists are placed into this category because they are statistically more likely to file a claim than other drivers. For example, the Center for Disease Control and Prevention estimates that roughly eight teens a day suffer fatal injuries as the result of automobile accidents, and that younger motorists are more likely to drive without a seat belt than any other age group.
Motorists in the Peace Garden State should know that residents are capable of changing markets based on their driving records. If a motorist in the preferred market is involved in multiple accidents or hits a pedestrian while drinking and driving, they are likely to be moved to a higher risk market and experience a premium increase, or even have their coverage canceled. It should be noted that drivers in the non-standard market can find cheaper policies over time. Individuals who are able to maintain a clean driving record for over three years typically see their rates decrease. In many situations these drivers may receive good driver discounts that often lead to significant savings.
Because residents are likely to fluctuate between these markets, it's usually beneficial to periodically search for auto insurance quotes online to potentially obtain cheaper coverage. Vehicle owners that begin to find less expensive rates may want to speak with their insurer about re-rating their policy, or consider switching providers in an effort to save money.