Best car insurance in North Dakota for 2023

Best car insurance companies in North Dakota

According to premium data from Quadrant Information Services, the average cost of full coverage car insurance in North Dakota is $1,302 annually. Minimum coverage costs an average of $269. However, the cheapest option isn’t necessarily the best. That’s why we evaluated other metrics, such as third-party customer service scores issued in J.D. Power’s 2022 U.S. Auto Insurance Study, financial strength ratings from AM best, digital tool availability and more. Our research found that Progressive, Nationwide, Allstate, Farmers and North Star Mutual are among the best North Dakota car insurance companies.

How Bankrate chose the best car insurance companies in North Dakota 

To find the best auto insurance in North Dakota, we analyzed average premiums provided by Quadrant Information Services to find the most competitive carriers. Then, we used our specialized lens to evaluate metrics that we, as insurance agents, feel are most important to consumers. These include coverage options, customer service hours and discount opportunities, among others. Once we had a holistic view of a carrier, we converted this data into our proprietary Bankrate Score, which ranges from 0.0 to 5.0. The higher a company’s Bankrate Score, the better it fared in our evaluation. Our goal is to give readers a quick way to assess companies as they shop for a new policy.

How much is car insurance in North Dakota?

The average cost of car insurance in North Dakota is $1,302 per year for a full coverage policy and $269 for a minimum coverage policy. These rates are much lower than the national averages of $2,014 and $622, respectively. When compared to some of its neighboring states, North Dakotans continue to pay lower-than-average rates. For instance, drivers in Minnesota pay, on average, $1,760 per year for full coverage. In Montana, drivers may expect to pay an average annual rate of $1,889.

North Dakotans might pay below-average premiums because of the state’s sparse population. Insurance prices are partially based on statistics, and the less congested the roads, the less likely you are to be involved in an accident.

How to find the best car insurance in North Dakota

Insurance is not one-size-fits-all. One company could be best for your friend or family member but less than ideal for your needs. If you keep the below considerations in mind as you request quotes, you might find the auto insurance in North Dakota that makes the most sense for you. 

Consider minimum insurance requirements in North Dakota

North Dakota law states that drivers must carry a minimum level of liability coverage to drive legally on public roads. Although an agent cannot sell you a North Dakota policy that fails to meet these requirements, knowing the state minimum liability limits might give you a baseline when you’re selecting your level of coverage. Additionally, many insurance professionals recommend that drivers carry above the state minimum for better financial protection. If you’re in an at-fault accident and the damage you cause exceeds your liability limits, you could be on the hook for massive out-of-pocket expenses. 

Consider lender requirements

When you finance or lease a car, you will almost certainly need to carry comprehensive and collision coverage on your policy to meet the requirements of your loan agreement. Drivers who are leasing will probably need to carry higher liability limits, too (usually $100,000 per person and $300,000 per accident in bodily injury coverage and $50,000 in property damage coverage). Since your lender has a financial interest in your vehicle while you’re paying it off, the lending company wants to be sure the car will be repaired if it’s damaged. While it may be optional, you might also consider adding gap insurance. This coverage can help if your vehicle is declared a total loss and you owe more than what the car is worth. 

Consider your individual needs

As mentioned, insurance is personalized, and the best policy is usually one that’s tailored to you. For example, if you need to insure a young driver, it might be a good idea to seek out companies with more than one discount for those under age 25. Perhaps your driving record and credit aren’t perfect. In that case, you might want to contact carriers that offer high-risk insurance. When it comes to coverage, North Dakota is unique. The state is rural, rugged and and has many weather hazards — it might be difficult to get a tow or alternative transportation after an accident. As such, North Dakotans may want to consider options like emergency roadside assistance and rental reimbursement to round out their policies. 

Frequently asked questions