North Dakota car insurance is the fifth-cheapest in the nation, on average, according to the Insurance Information Institute. However, because prices can vary dramatically from one company to the next, you could still get stuck with steep rates by failing to shop around.
Car insurance quotes also depend on personal factors such as your age, accident history and credit rating. To help you pinpoint the best deal for your circumstances, NerdWallet tested rates from the eight largest insurers in North Dakota and found the three most affordable options for these motorist types:
Drivers with one at-fault crash
Also in this article
Minimum car insurance requirements in North Dakota
Alternative car insurance for high-risk drivers
Cheapest for good drivers
For drivers with no at-fault crashes, DUIs or moving violations; range of average prices from the eight largest insurers: $962 to $2,784 per year.
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- $962/year
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- $997/year
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- $1,067/year
Among the three cheapest companies, the average for good drivers was $1,009 per year, which comes to roughly $84 a month. State Farm had the lowest price at $962 per year. The company also boasts one of the widest assortments of discounts for accident- and violation-free driving, which can help motorists with clean records save even more.
American Family and Nodak Mutual, which operates only in North Dakota, had the next cheapest annual rates — $997 and $1,067, respectively.
Cheapest for young drivers
For drivers in their early 20s; range of average prices from the eight largest insurers: $434 to $1,565 per year.
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- $434/year
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- $454/year
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- $528/year
Drivers in their early 20s typically face higher rates than middle-aged motorists if they select the same amount of coverage. However, young policyholders tend to have less to lose financially and can reasonably choose leaner policies as a way to save, which we took into account in our analysis.
American Family had the lowest average price in our test at $434 per year. All three of cheapest companies notched average rates under $45 a month and would make pretty affordable options.
Cheapest for drivers with one at-fault crash
Range of average prices from the eight largest insurers: $1,116 to $3,859 per year.
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- $1,116/year
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- $1,554/year
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- $1,800/year
Causing a crash usually triggers a rate increase, either with your current company when you renew or the next time you shop for a policy. However, the exact amount of this penalty varies by insurer, which is why shopping around is still crucial even if you have blemishes on your record.
For instance, State Farm’s average rate for drivers with an at-fault crash was $154 per year higher than its price tag for drivers with no accidents. American Family, on the other hand, raised its average quote by $557 per year for this group.
Cheapest for drivers with poor credit
For drivers placed in a “Poor Credit” tier using NerdWallet’s car insurance rates tool; range of average prices from the eight largest insurers: $1,441 to $3,012 per year.
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- $1,441/year
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- $1,547/year
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- $1,656/year
Most states allow companies to use credit as a factor when setting auto insurance rates. As a result, drivers with poor credit tend to pay more than many other motorists. In North Dakota, based on our findings, the added cost is no slap on the wrist.
The lowest average quote we found for this group — $1,440 a year from Nodak Mutual — was $478 higher than the cheapest offer for our sample good drivers, who had no credit problems. With more than a $1,500 difference between the lowest and highest rates, however, it’s clear that shopping around and comparing several estimates is crucial for avoiding sky-high costs.
Cheapest for retired drivers
For drivers in their mid to late 60s who no longer use their car for commuting; range of average prices from the eight largest insurers: $690 to $2,621 per year.
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- $690/year
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- $865/year
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- $873/year
Giving up the daily grind can really pay off when it comes to auto insurance. We tested for retirees who drove half as many annual miles as other groups and found comparatively cheap quotes as a result.
State Farm returned the lowest average rate at $690 per year, with American Family and the North Dakota-only Nodak Mutual rounding out the three cheapest options. Retirees can often trim their car insurance bill even more by qualifying for mature driver discounts available from many companies, such as those for taking an approved defensive driving course or simply reaching a certain age.
Minimum car insurance requirements in North Dakota
North Dakota drivers must carry liability insurance, uninsured/underinsured motorist bodily injury coverage and personal injury protection with the following minimum limits:
- $25,000 bodily injury liability per person.
- $50,000 bodily injury liability per crash.
- $25,000 property damage liability per crash.
- $25,000 uninsured/underinsured motorist bodily injury per person.
- $50,000 uninsured/underinsured motorist bodily injury per crash.
- $30,000 personal injury protection.
Although choosing the bare minimum will allow you drive legally, it may not always be enough to protect your savings if a crash occurs. Check out NerdWallet’s guide to minimum car insurance requirements by state for help figuring out how your North Dakota auto policy works and how much coverage makes sense for you.
Alternative car insurance for high-risk drivers
If you’ve been denied car insurance on the open market because of a low credit rating, checkered crash history or other personal factors, you can apply for coverage through the North Dakota Automobile Insurance Plan. Note that you must have tried and failed to buy coverage in the state within the past 60 days in order to qualify.
For more help finding cheap North Dakota car insurance, try NerdWallet’s rates comparison tool.
Alex Glenn is a staff writer at NerdWallet, a personal finance site. Email: aglenn@nerdwallet.com.
METHODOLOGY
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured/underinsured motorist bodily injury coverage, $30,000 personal injury protection, and collision and comprehensive with a $1,000 deductible. We used a 2012 Toyota Camry in all cases.
Our sample retired driver was 67 and drove 5,000 annual miles; all other groups drove 10,000 annual miles. Our sample young driver was 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
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