Liability Insurance — North Dakota
Liability insurance pays for injuries and property damage you cause to others in an at-fault accident — it does not cover your own vehicle or medical bills.
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What Is Liability Insurance Insurance?
Liability insurance is the foundation of auto insurance in North Dakota and every other state. It pays for damage you cause to other people and their property when you're at fault in an accident. The coverage has two parts: bodily injury liability, which covers medical bills, lost wages, and pain-and-suffering claims from injured parties, and property damage liability, which pays to repair or replace the other driver's vehicle and any other property you damage.
Who Needs Liability Insurance Insurance?
Every driver in North Dakota must carry liability insurance to register a vehicle and drive legally. It's non-negotiable. Beyond the legal requirement, liability coverage is critical financial protection — a single serious accident can generate six-figure claims, and without insurance, you're personally liable for every dollar. Drivers with assets to protect should carry limits well above the state minimum.
The real decision is not whether to carry liability insurance, but how much. If you have assets — a home, savings, retirement accounts — consider limits of at least 100/300/100. If a claim exceeds your liability limits, the injured party can sue you personally and pursue your assets. Compare the cost of higher limits against the financial risk of a serious at-fault accident, and choose limits that protect what you own.
How Much Does Liability Insurance Insurance Cost?
- Driving record — a single at-fault accident can raise liability premiums 20 to 40 percent for three years.
- Location — urban drivers in Fargo and Bismarck pay higher liability premiums than rural drivers due to accident frequency.
- Age and experience — drivers under 25 and over 70 face higher liability rates due to actuarial risk data.
- Credit-based insurance score — North Dakota allows insurers to use credit history, which can swing liability premiums 30 percent or more.
- Annual mileage — drivers logging over 15,000 miles per year pay higher liability premiums than those driving under 7,500 miles.
