North Dakota Car Insurance Guide
Owning a car or truck is a big responsibility. In addition to making your auto loan payments every month, you also need to purchase auto insurance to protect yourself and others while you are on the road.
Purchasing vehicle insurance is not only a smart step to take - carrying a certain amount of auto insurance coverage is legally required in all 50 states.
There are many components of auto insurance coverage that should be considered when purchasing a policy. What does auto insurance actual cover? How much coverage is enough? What types of discounts are available?
Auto Insurance Coverage Options
When purchasing an auto insurance policy, it is important to consider the different insurance options available to ensure that you select the right coverage for your needs.
There are five types of auto insurance coverage options to consider:
- Bodily Injury Coverage: This option provides the policyholder with protection from legal claims made by other injured drivers if the policyholder is found to be at fault for an accident.
- Liability Coverage: The option provides the policyholder with protection if the policyholder damages any property in an accident.
- Collision Coverage: This option provides the policyholder with coverage of any costs associated with damage to the policyholder's vehicle that is caused by a parked vehicle or other stationary object.
- Comprehensive Coverage: This option provides the policyholder with coverage of any costs associated with damage to the policyholder's vehicle that is caused by non-vehicular incidents, such as fire, theft or vandalism.
- Uninsured or Underinsured Motorist Coverage: This option provides the policyholder with protection if the policyholder is in an accident that is caused by a driver with little or no insurance.
How Much Auto Insurance Coverage is Enough
Drivers in almost every state are required to carry a minimum amount of auto insurance liability coverage. In North Dakota, the state minimum coverage is 25/50/25, meaning that drivers must carry $25,000 for bodily injury for one person, with a maximum of $50,000 for all injured persons, and $25,000 for property damage.
While the state minimum liability limits do offer drivers some protection if they are at fault for a car accident, many times, the minimum limits are not necessarily enough coverage to provide sufficient protection.
For example, the average cost associated with an average hospital stay of 4.6 days was $23,958 in 2006, according the U.S. Department of Health and Human Services.
If you carried North Dakota's minimum bodily injury liability limit, your insurance would cover $25,000 for the care of one injured person. With the average hospital stay costing just under $24,000, your insurance would barely cover those costs, provided the injured person did not require any additional care following his or her hospital discharge.
If for any reason the costs exceed $25,000, you would be on the hook to cover the remaining costs and the injured person could go after your personal assets to cover the costs.
Available Auto Insurance Discounts
Today, auto insurance providers offer several discounts to help make carrying auto insurance coverage more affordable. Here are just a few of the most common discounts available:
- Multiple Policy Discount: This discount can save you money if you combine your homeowners insurance or other insurance policies with the same insurance company.
- Safe Driver Discount: This discount can save you money if you have no moving violations or have not been in an accident within a certain time period.
- Anti-Theft/Safety Device Discount: This discount can save you money if your vehicle includes an anti-theft device, such as an alarm, or certain safety features, such as airbags.