WalletHub, Financial Company
@WalletHub
Yes, North Dakota is a no-fault state. North Dakota being “no-fault” means each driver's insurance pays for their own medical bills no matter who causes a collision. North Dakota drivers purchase personal injury protection (PIP) coverage for that purpose.
Drivers in no-fault states such as North Dakota can't sue other motorists as easily as drivers in so-called tort states, where fault matters, either. Specifically, North Dakota has modified comparative negligence laws. If you are 50% or more at fault, you can't collect any damages from the other driver. If you're less than 50% at fault, you can collect damages minus the percentage that you're at fault. So if you're 30% at fault, you can recover 70% of what you spent on damages after the crash.
Why You Should Care That North Dakota Is A No-Fault State
No-fault means faster payouts. Police and your insurance company don't need to investigate the accident’s cause before you can get paid for your medical bills. As a result, your bills get paid more quickly than they would in a tort state, where fault for the accident determines the payout.
Another benefit of no-fault insurance is the knowledge that you're covered no matter who causes an accident. That can make driving in North Dakota a bit less nerve-wracking.
No-fault insurance also has downsides, unfortunately. The most obvious is higher premiums. States with no-fault insurance struggle with high rates of fraudulent claims, which raise the costs of insurance for everyone.
No-fault rules don’t apply to property damage, either. One or both drivers will be at fault after a collision, no matter which state you live in. The police and your insurance company consider North Dakota’s laws, the circumstances of the collision, and drivers’ testimonies before deciding who is at fault.
North Dakota vs Other No-Fault States
All states have a statute of limitations for lawsuits after a car accident. In North Dakota, the statute of limitations is quite long: six years. That means you have six years after your accident to file a lawsuit for medical damages.
North Dakota no-fault insurance data
No-Fault State | Average Annual Premium | Rank Among No-Fault States (1=cheapest) | Threshold for Suing | Statute of Limitations |
North Dakota | $1,396 | 20 | In North Dakota, you can be sued if the other person has at least $2,500 in medical bills and 60 days of disability or injury, permanent or otherwise. | 6 years |
Minnesota | $975 | 41 | In Minnesota, you can be sued if the other person has at least $4,000 in medical bills and 60 days of disability or injury, permanent or otherwise. | 6 years |
Montana | $1,256 | 26 | - | 3 years |
All states have a statute of limitations for lawsuits after a car accident. In North Dakota, the statute of limitations is quite long: six years. That means you have six years after your accident to file a lawsuit for medical damages.
North Dakota no-fault insurance data
No-fault insurance can make the process of recovering from a collision easier for everyone involved, but it's generally more expensive. Buy as much coverage as you can afford to protect yourself in the event of a costly collision.
People also ask
Did we answer your question?