Anyone who owns North Dakota auto insurance should be thankful because it's about $300 less than the cost of auto insurance in neighbouring South Dakota. However, there are a lot of areas that need to be covered in regards to your policy. State law says you must carry auto insurance if you are driving a motor vehicle. The repercussions aren't worth the trouble, so make sure you have the minimum requirements on your policy. Otherwise you could be left with fees, jail time, and a tarnished record.
What are the Minimum Requirements?
This list of requirements is much more than other states in the country. While some only require liability coverage, there are several others that must be in your policy if you want North Dakota auto insurance.
Below you will find the list of coverage's that are mandatory in the state of North Dakota:
Each one of these areas will be very important to the amount of money it's going to cost for you premium. The state standards offer a glimpse of what the minimums are, which is what we're going to show you below. Keep in mind; this is for all three areas:
* $25,000/ bodily injury or death of one person in any one accident
* $50,000/ bodily injury or death of two persons in any one accident
* $25,000/ injury to or property damage of others in any one accident
* $25,000/ per person, $50,000/ per accident uninsured motorist coverage
* $25,000 per person, $50,000 per accident underinsured motorist coverage
* $30,000 personal injury protection
The No Fault System and other issues
North Dakota auto insurance revolves around a No Fault system. This means that if an accident occurs, each driver's insurance company will cover their own costs. Since this is a state law you have to carry insurance at all times. If you something unexpected happens or you are just pulled over for one reason or another; there are stiff consequences that will soon follow.
The first time it happens you're hit with a $150 fine, and second-time offenders are looking at a $300 minimum. This is money a lot of individuals can't afford to fork over, especially when it could have been prevented. There are several issues that come along with not having North Dakota auto insurance, so we recommend reading over all the state laws. This way you have a better feel for what type of problems could be lurking.
Additionally, the fines are not really at the heart of why you should get the cover. The reason these minimums exist is not for North Dakota to be a kind of "nanny-state". But rather to ensure that the residents of North Dakota are adequately protected in the event of car accidents in the state.
The state legislature knows that the costs of medical expenses, repairing cars, personal injury costs and deciding on legal liability for a crash are all expensive, and that without decent North Dakota Auto Insurance the average resident of the state would never be able to afford them.
Hence the state requirements for auto insurance simply set in legal stone that someone will be able to pick up the tab if there are problems.
How Your Rates are Determined
There are several pieces of information that a North Dakota auto insurance company will ask you in order to determine your rates. While age, gender, make and model of vehicle, previous driving history, territory, and other areas come into play; one of the biggest issues consumers have is asking about personal credit history. This is something that most people don't understand why it is relevant.
When you purchase North Dakota auto insurance they are going to ask you for your social security number. Keep in mind; they don't have to ask your permission to do so, because by law it is not necessary. It's possible that your credit history will make your premiums go up, but it's not the only factor that comes into play. Everything else we mentioned earlier will be just as important. Then again; this helps them figure out whether or not you are worthy of monthly payments or whether your cover must be paid in full.
Either way, for the average resident of North Dakota, you have nothing to worry about.
Take the time to look over all the laws regarding North Dakota auto insurance. Everything is much easier when you are prepared.
Simply take the time right now to get a few quotes, and see at what price you can get cover. These prices vary according to the levels of cover and on what basis the policy will pay out; but you will soon start to see patterns emerge in the pricing when you get a few North Dakota Auto Insurance Quotes, and see how the insurance companies are really rating the different factors involved in getting a policy.