Car insurance in North Dakota

Posted on September 26, 2014

This page features a summary of recent information pertaining to car insurance in the state of North Dakota. Use this as a handy guide the next time you find yourself shopping for auto insurance. Scroll down for some useful tips on lowering your annual premiums.

North Dakota Minimum Liability Coverage

In keeping with North Dakota state law, the minimum amount of liability coverage required for each passenger vehicle is 25/50/25. To put it in plain English, car owners in the state of North Dakota must purchase no less than $25,000 in personal injury (driver) protection, also known as PIP. They also have to buy at least $50,000 in “per-accident” insurance to cover the costs of other people’s injuries. Lastly, the driver must buy $25,000 or more in coverage against property damage. So the maximum payout for the minimum car insurance required in North Dakota is $100,000. However, this amount may or may not be enough to cover the costs of an accident. For this reason, some drivers buy more than the minimum coverage required by law.

Penalties for Driving Without Insurance in North Dakota

For the first offense, drivers in North Dakota who get caught operating uninsured vehicles face a minimum fine of anywhere from $150 to $1,000, as well as a suspended registration until proof of insurance is provided. Subsequent convictions within 18 months are punishable by a fine of $300 to $5,000.

Auto Insurance Rates in North Dakota

The average annual premium for automobile insurance in the state of North Dakota in 2016 was $1,200, noticeably lower than the national average of $1,347 for the same time period. According to analysts, the state’s growing economy, low population density, low percentage of uninsured vehicles and relatively low crime rate all contribute to North Dakota’s lower than average car insurance premiums.

Low Cost Car Insurance Programs in North Dakota

Vehicle owners in North Dakota can lower their car insurance premiums in a number of different ways. The best way to take a big chunk off your annual rates is to qualify for every available discount offered by local carriers. These include Good Driver discounts, Accident Free discounts, Good Student discounts, Multiple Policy discounts and Multiple Auto discounts, among others.

You can also save money on car insurance by paying your annual premium all at once, increasing your deductible amount, improving your credit rating, and driving vehicles with permanently installed safety features, for instance.

Obtaining Auto Insurance Quotes in North Dakota

According to recent consumer reviews and online complaint reports, the most well regarded car insurance companies in North Dakota are AAA, Allianz, American Family Insurance, American National Insurance, Auto Owners Insurance, State Farm and 21^st Century Insurance. Still, some North Dakota drivers opt for locally owned and operated insurance carriers like Western National. Either way, the state of North Dakota is home to numerous companies offering auto insurance at competitive rates. Call around, compare quotes and qualify for discounts. This alone can save you hundreds of dollars a year in car insurance.

North Dakota Car Insurance

With the right preparation, buying North Dakota car insurance needn’t be a headache. Here are some facts regarding the state of North Dakota, along with tips on how to reduce the rates on your North Dakota auto insurance policy.

Find out which types of auto insurance coverage North Dakota drivers need, and the minimum coverage amounts required by North Dakota state law. View a list of of the 10 largest auto insurance companies in America, along with a list of the 10 largest car insurance companies in North Dakota. See the average annual auto insurance premium rate for the state of North Dakota, and compare this average rate to your own rates on North Dakota car insurance.

Get details regarding the four most expensive and the four least expensive neighborhoods in North Dakota to buy car insurance. Scan North Dakota zip code population demographics, poverty levels, unemployment rates, median incomes, median ages, and the percentage of uninsured drivers on the roads in North Dakota. All these factors can affect North Dakota car insurance rates.

Most importantly, look here to see how drivers in the state of North Dakota can maximize the car insurance discounts on their policies, in order to reduce the premium rates on North Dakota car insurance.

North Dakota Car Insurance Statistics

In both total population and population density, North Dakota is ranked 47^th among states. Only the states of Alaska, Montana, and Wyoming have sparser populations than the state of North Dakota. The total population of North Dakota is approximately 758,000, according to a 2016 census bureau estimate. The median resident age of the population of the state of North Dakota is about 34.9 years.

The unemployment rate in North Dakota is about 2.5 percent, far below the overall national average unemployment rate of 4.4 percent. In fact, North Dakota has the 2^nd lowest unemployment rate of all 50 states, probably due to the oil fields. Colorado is the only state with a lower unemployment rate than North Dakota, probably due to the legalization of cannabis. The poverty rate in North Dakota is approximately 11 percent, below the national average poverty rate of 13.5 percent.

Recently, a study group from the Insurance Research Council analyzed a sample of North Dakota drivers. The results showed that only 5.9 percent of vehicles on North Dakota roads are uninsured. That’s only about 1 in 17 vehicles. Compare this rate to the overall average rate for uninsured vehicles in America, which is 12.6 percent.

According to recent research, the statewide average annual premium rate for a North Dakota car insurance policy was around $1,315, slightly below the overall national average car insurance rate, which was about $1,355 at the time. In terms of statewide average car insurance premium rates, North Dakota ranks 25^th in the nation.

The 10 Largest North Dakota Car Insurance Companies

Here is a list of the 10 largest car insurance companies in the United States, followed by a list of the 10 largest car insurance companies in the state of North Dakota. The carriers listed here are ranked by the total annual dollar amount of direct premiums written. From this dollar amount, it is possible to calculate each company’s total market share in the United States, and also in the state of North Dakota.

The ten largest auto insurance companies in America are

Allstate Insurance
State Farm Insurance
Geico
Progressive Insurance
Nationwide Group
AAA
Liberty Mutual Insurance
21^st Century Insurance
GMAC
AIG

… in that order.

Shown below is a list of the 10 largest auto insurance companies in North Dakota:

Rank	Company	Premiums ($)	Market Share (%)
1	Progressive Insurance Group	$60,477	14.73
2	State Farm Insurance Group	$58,062	14.14
3	American Family Insurance Group	$42,383	10.32
4	QBE Americas Group	$37,235	9.07
5	Nodak Mutual Group	$36,683	8.94
6	Farmers Insurance Group	$16,363	3.99
7	USAA Group	$15,645	3.81
8	Berkshire Hathaway Insurance	$14,700	3.58
9	Auto Owners Insurance Group	$13,485	3.29
10	Center Mutual Insurance Company	$13,093	3.19

It looks like Progressive and State Farm Insurance are the most popular car insurance companies in North Dakota. So maybe you’ll choose one of those, but not necessarily. Maybe you prefer a smaller, regional company. Or maybe the car insurance company you select will depend on your personal statistics. Senior drivers may prefer The Hartford Insurance Group, since The Hartford offers special deals to senior drivers. Military people and their families may prefer USAA, since USAA is specifically geared toward military personnel. There is really no such thing as The Single Best North Dakota Car Insurance Company For Everyone.

Whichever company you end up choosing, here are some ways that drivers in the state of North Dakota can save (maybe) hundreds of dollars a year on their car insurance premium rates.

Cutting Costs on North Dakota Car Insurance

One surefire method of reducing the premium rates on a North Dakota car insurance policy is to read a number of customer reviews of at least a few North Dakota auto insurance companies. Then you can make a list of whichever carriers seem like the best options for you.

Then visit each company website and get a few online quotes. Compare quotes from different companies, after all the available discounts are considered. You can even get quotes for more than one North Dakota zip code within each individual car insurance company.

Be sure to double check the discounts each company offers, including the rate of reduction. Many additional discounts can be discovered by scrutinizing the discount page of each company website, and possibly calling an agent to find out if you qualify.

What Types Of Car Insurance Do North Dakota Drivers Need?

North Dakota state law dictates that each vehicle registered in the state must have minimum insurance coverage amounts of $25,000 for bodily injury to others, $50,000 in per-accident coverage, and $25,000 to cover the cost of property damage.

Drivers in North Dakota are also required by law to purchase the same bodily injury liability coverage amounts ($25,000 per injury and $50,000 per accident) in uninsured and underinsured motorist insurance (UMI), as well as at least $30,000 coverage in personal injury protection (PIP).

Despite the extra required coverage, most state minimum coverage amounts are not high enough to cover the cost of car repairs and/or medical bills resulting from traffic accidents. That’s why insurance experts all across America recommend coverage amounts of $100,000 for personal injury protection, $300,000 against bodily injury to others, and at least $50,000 to cover the cost of property damage.

North Dakota Car Insurance Laws You May Not Know

In the state of North Dakota, people as young as 14 years of age can obtain learner permits. At 15, they can get restricted drivers licenses.
The penalty for driving under the influence in North Dakota is an immediate loss of the drivers license, a fine of no less than $250, and a mandatory alcohol addiction evaluation.
North Dakota is a no-fault state, meaning that auto insurance companies will pay out regardless of who is at fault in the accident.

Best And Worst Zip Codes For North Dakota Car Insurance

Annual premium rates on car insurance policies in the state of North Dakota will vary between zip codes, due to changes in population densities, crime rates, unemployment levels, and poverty statistics, among other things.

Shown below is a list of the four most expensive neighborhoods (on average) in the state of North Dakota to buy car insurance. Annual premium rates in these zip codes can run from about $785 to around $2,935, with an average rate of roughly $1,500.

Zip Code	Pop Density	Unemployed %	Poverty %
58538 (Fort Yates)	15	23.20%	36.50%

The poverty rate in this Sioux County neighborhood is well over three times the North Dakota state average of 11 percent. The unemployment rate is nearly 10 times the state average of 2.5 percent. This means many drivers cannot afford car insurance, and are therefore driving uninsured. This helps explain why this zip code is the most expensive place to buy North Dakota car insurance. Incidentally, the population of this neighborhood is primarily native American, which helps explain the high unemployment and poverty rates. Jobs are scarce on reservation lands.

Zip Code	Pop Density	Unemployed %	Poverty %
58570 (Cannonball)	2	5.60%	9.10%

This Morton County neighborhood is home to less than 500 people. Unemployment is more than twice the 2.5 percent state average, although the poverty rate falls well below the state average. What’s more, the population density is so light you can hear an echo. It’s hard to say why North Dakota car insurance rates are so high around here, except for the fact that this neighborhood is very near the Standing Rock Sioux reservation.

Zip Code	Pop Density	Unemployed %	Poverty %
58533 (Elgin)	3	3.70%	21.30%

This Grant County neighborhood is home to fewer than 1,000 people. The unemployment rate is above the state average, but still well below the national average. However, the poverty rate is well above both state and national averages. Curiously, the median resident age here is 53.9 years, fully 19 years above the median age for North Dakota. This anomaly may be due to young adults leaving town because there just isn’t very much to do around here.

Zip Code	Pop Density	Unemployed %	Poverty %
58564 (Raleigh)	0	0%	15.70%

This Grant County zip code is home to only about 100 people, yet the land area is about 118 square miles. That means this town has a population density of less than one person per square mile. The unemployment rate is unknown, but the poverty rate is above the North Dakota state average of 11 percent.

Now compare the North Dakota zip codes above to the North Dakota neighborhoods below. Here is a list of the four least expensive zip codes (on average) in the state of North Dakota to buy car insurance. Annual premium rates in these neighborhoods can range from around $695 to about $2,110, with an average annual premium rate of roughly $1,120.

Zip Code	Pop Density	Unemployed %	Poverty %
58204 (Grand Forks)	282	5.50%	5.70%

This neighborhood is home to roughly 2,250 people. The median resident age here is 22.7 years, more than 12 years younger than the median age for all of North Dakota. This is, perhaps, due to the presence of an Air Force base. Unemployment is more than twice the 2.5 percent state average, although the poverty rate is only about half the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
58207 (Grand Forks)	0	0%	0%

We have no information for this zip code, yet this zip code is one of the four cheapest neighborhoods to buy North Dakota car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
58205 (Grand Forks)	2,593	0%	0%

This neighborhood is basically an Air Force base with a population of under 500, and a land area of only about one fifth of a square mile. Unemployment and poverty are virtually non existent in this area. Because this is an Air Force base, the median resident age here is a very young 22.2 years.

Zip Code	Pop Density	Unemployed %	Poverty %
58036 (Gardner)	4	0%	1.90%

This Cass County zip code, located about 20 miles northwest of Fargo, is home to only about 300 people. Unemployment and poverty rates are non issues in this neighborhood.

All in all, the state of North Dakota is home to 407 zip codes covering 53 counties that surround 372 cities, from Abercrombie to Zeeland and everywhere in between. The difference in average annual premium rates between the cheapest zip codes and the priciest zip codes in the state of North Dakota is about $400.

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