If you're registering and operating a motor vehicle in North Dakota, the law requires you to maintain certain minimum levels of car insurance coverage on it. North Dakota is also a "no-fault" car insurance state. That means your options are often limited when you're injured in a car accident, in terms of the kinds of claims you can pursue. In this article, we'll break down North Dakota's no-fault car insurance system, and the minimum car insurance coverage requirements in the state.
North Dakota is one of a dozen or so states that have legislated some form of a “no-fault” car insurance system. That means, after 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.
In North Dakota, these PIP benefits are available to anyone covered under the policy (directly or indirectly), including:
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.
In order to step outside of the no-fault system and file a third-party insurance claim or lawsuit against the at-fault driver (so that "pain and suffering" and other non-economic losses are compensable) your injuries must meet certain thresholds set by state law (we'll look at North Dakota's thresholds in the next section).
While North Dakota’s no-fault car insurance system applies to injuries caused by car accidents, 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.
As touched on above, 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:
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).
Now that you understand how no-fault car insurance works in North Dakota, let’s look at the state’s requirements for different kinds of car insurance coverage.
In order to register and drive a motor vehicle in North Dakota, you must carry certain minimum amounts of insurance on it. According to the North Dakota Insurance Department, those minimums are as follows.
Bodily injury liability: $25,000 per person (the maximum amount payable to one person)/$50,000 per accident (the maximum amount payable to all people injured) in an accident caused by you.
Property damage liability: $25,000 per accident for vehicle damage and other property loss in an accident caused by you (does not cover damage to your vehicle).
Uninsured motorist coverage: $25,000 per person/ $50,000 per accident. (Underinsured motorist coverage must be equal to the uninsured motorist coverage amount). Learn more about uninsured and underinsured motorist coverage.
Basic no-fault/PIP: $30,000 per person.
Keep in mind that, if you are found responsible for causing a car accident, and the injured drivers’ and/or passengers’ losses exceed the limits of your car insurance policy, you may find yourself personally responsible for making up the difference out of your own assets.
For more details on the state's car insurance rules and requirements, check out the North Dakota Insurance Department's Auto Insurance page.