What Car Insurance Do I Need in North Dakota?

In order to register and drive a vehicle in North Dakota, you must carry these minimum amounts of insurance on it:

• Bodily injury liability: $25,000 per person (the maximum payable to one person injured)/$50,000 per accident (the maximum payable to all people injured) in an accident you cause
• Property damage liability: $25,000 per accident for vehicle damage and other property loss in an accident you cause
• Uninsured motorist coverage: $25,000 per person/ $50,000 per accident. (Underinsured motorist coverage must be equal to the uninsured motorist coverage amount), and
• Basic no-fault/personal injury protection: $30,000 per person.

Those are the car insurance coverage basics in North Dakota. Now let's look at the details.

Is North Dakota a No-Fault Car Insurance State?

Yes. North Dakota is one of a dozen or so states that have legislated some form of a "no-fault" car insurance system. That means, when you're injured in a car accident, your own basic no-fault (also called "personal injury protection" or "PIP") coverage pays for your medical bills and certain other out-of-pocket losses, regardless of who caused the accident.

Who Is Covered Under North Dakota No-Fault Car Insurance?

In North Dakota, PIP benefits are available to anyone covered under the policy (directly or indirectly), including:

• the policyholder
• the policyholder's spouse
• relatives who live with the policyholder, and
• anyone driving the policyholder's covered vehicle, with permission.

What Car Accident Losses Does No-Fault Insurance Cover in North Dakota?

When a no-fault/PIP claim is filed by a covered individual after a car accident in North Dakota, that person is entitled to up to $30,000 to cover "economic losses" arising from the crash, including:

• medical bills to treat car accident injuries
• income lost as a result of the injuries, and
• cost of paying someone to perform household work and other tasks the injured person is unable to perform.

A key thing to understand about a no-fault/PIP claim is that you can't get compensation for your "pain and suffering" and other non-monetary damages stemming from the accident. You're limited to compensation for your medical bills and other economic losses (unless you can step outside of the no-fault system; more on this a little later).

Does North Dakota No-Fault Insurance Cover Damage to My Car?

No. No-fault/PIP only applies to injuries caused by car accidents, and certain out-of-pocket losses stemming from those injuries. It has no bearing on vehicle damage claims. You can hold the at-fault driver liable for damage to (or total loss of) a vehicle after a car accident in North Dakota, with no limitations.

Can I Ever Make a Claim Against an At-Fault Driver in North Dakota?

Yes. In order to step outside of North Dakota's no-fault car insurance system and pursue a case directly against the driver who caused the underlying accident, your claim must meet the thresholds set by state law. That means, as a result of the car accident:

• your total necessary medical expenses incurred because of the accident exceed $2,500, or
• you suffered "serious and permanent disfigurement or disability" lasting more than 60 days.

If you meet one or both of these requirements, you have the right to hold the at-fault driver responsible for the accident by filing a third-party car insurance claim or personal injury lawsuit, and that means you can pursue compensation for all categories of losses, including pain and suffering and all other available non-economic damages (which, again, aren't available in a no-fault/PIP claim).

What Does Liability Car Insurance Cover in North Dakota?

As we touched on at the top of this article, North Dakota requires liability car insurance coverage in addition to no-fault. This kind of insurance covers injuries, vehicle damage, "pain and suffering," and other kinds of losses suffered by others in a car accident you (or anyone covered under your policy) cause. Your own liability insurance never covers your injuries or vehicle damage after a crash.

Keep in mind that, if you're found responsible for causing a car accident, and other people's losses exceed the liability limits of your car insurance policy, you could be personally responsible for making up the difference out of your own assets. Learn more about what happens if you're in a car accident and you're uninsured.

What Are the Penalties for Driving Without Insurance In North Dakota?

Driving without liability insurance is a crime (classified as a class B misdemeanor in North Dakota), punishable by a fine of at least $150. If you're caught driving without insurance you'll probably also need to file an SR-22 with the State Drivers License Division of the North Dakota Department of Transportation. This document shows proof of your financial responsibility if you end up causing an accident.

What Is North Dakota's "No Pay, No Play" Law?

Another penalty for driving without insurance in North Dakota relates to the legal remedies available to you if you're injured in a car accident.

North Dakota's "no pay, no play" law says that if you're injured in an accident while you're driving without insurance, you're barred from recovering "non-economic" damages from the at-fault driver if you have at least one past conviction for uninsured driving. (North Dakota Century Code section 26.1-41-20.)

Since non-economic damages include your physical and mental "pain and suffering," it's a big deal to have this kind of compensation taken off the table after a car accident, especially if your injuries are serious.

What's Next After a North Dakota Car Accident?