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Yes, North Dakota is a no-fault state. North Dakota being a no-fault state for car insurance means all North Dakota drivers are required to purchase personal injury protection (PIP) insurance to cover their own medical bills after an accident regardless of who was at fault. Additionally, no-fault laws in North Dakota place limitations on a driver’s right to sue after an accident. Drivers in North Dakota can only sue for their injuries if the injuries are permanent, result in disfigurement or more than 60 days of disability, or the cost of their medical expenses exceeds $2,500.
North Dakota uses a modified comparative (50%) negligence system, meaning drivers can't collect any damages from the other parties if they were 50% or more at fault. If they were less than 50% at fault, drivers can collect damages minus the percentage that they were at fault. So if the driver was 30% at fault, they can recover 70% of what they spent on damages after the crash.
Key Things to Know About No-Fault Insurance in North Dakota
- Faster payouts. Police and your insurance company don't need to fully 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.
- Coverage for medical expenses. Another benefit of having to carry PIP 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.
- Higher premiums. Car insurance in North Dakota costs $789 per year, on average, while the national average cost of car insurance is $1,407 per year. States with no-fault laws typically have higher average car insurance costs due to the required PIP insurance.
- Property damage is not covered. No-fault rules don’t apply to property damage. One or more drivers will be at fault after a collision, no matter which state you live in. The police and insurance companies consider North Dakota law, the circumstances of the collision, and drivers’ testimonies before deciding who is at fault.
To learn more, check out WalletHub’s guide to no-fault insurance.
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