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.
If you’re at fault in a car accident, your liability insurance pays for the other driver’s car repairs and will likely cover any doctor’s bills if they’re injured. No-fault states are the exception, as they require each driver to use their own insurance to pay for medical expenses after an accident. But regardless of the state, fault always dictates whose liability insurance pays for property damage.… read full answer
Your liability insurance never covers your own expenses, so you will need collision insurance, personal injury protection (PIP), or MedPay in order to avoid paying out of pocket for an at-fault accident. Some states require drivers to have PIP or MedPay, while collision insurance is usually required if you are leasing or financing your car.
After an at-fault accident, car insurance rates go up by an average of 48%. The exact amount that your premium will go up depends on a few factors, including your state and how much damage you caused. But any increase is only temporary, usually lasting about 3-5 years. And if you have accident forgiveness with your insurance company, your rates might not go up at all.
Ultimately, no one wants to be at-fault in a car accident, but it’s important to understand how at-fault accidents work just in case. With that in mind, here’s a quick summary of what you really need to know.
Here’s What Happens If You Are At-Fault in a Car Accident
Your liability insurance should pay for the other driver’s expenses.
You will need to use other types of car insurance to cover your own repair and medical bills.
Your car insurance rates will go up by an average of 48% for 3-5 years.
You need personal injury protection (PIP) insurance if you live in one of the 12 states that require it. You should also get PIP if your health insurance has low coverage limits or if you drive with passengers who could hold you responsible for their medical expenses in the event of an accident.… read full answer
In the 20 states (plus Washington, D.C.) where it is required or offered as optional protection, PIP covers medical expenses for the policyholder and his or her passengers after an accident, no matter who was at fault. However, PIP is not available at all in the 30 other states.
Always check with your insurance company or an agent for specifics on what coverage is required or available in your state before you determine what to include in your policy.
What Does PIP Cover?
Health insurance deductibles
Home care such as cleaning or child care
If you are in a car accident, PIP often works in conjunction with your health insurance coverage. Most health insurance deductibles must be paid before benefits start to be paid out, but your PIP may have a cheaper deductible, or no deductible at all.
How Does PIP Work With MedPay?
PIP insurance may overlap with another kind of car insurance known as Medical Payments, or MedPay. Like PIP, MedPay covers the costs of medical care resulting from of an accident, no matter who was at fault. Also like PIP, MedPay covers injuries to any passengers in your car. However, it does not pay for lost wages, rehabilitation or home-care services, which PIP would cover.
The way PIP and MedPay may work together depends on your state’s laws. If you live in one of the 12 states that require PIP, MedPay could be redundant. State limits on PIP vary widely, from $3,000 in Utah to New York’s $50,000 requirement. If your state has a low upper limit on PIP, MedPay coverage could act as a beneficial supplement. In a couple states – namely, Maine and New Hampshire – MedPay is used instead of PIP.
The twelve states that require PIP insurance, also known as personal injury protection, are Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah. Of these states, 11 are “no-fault” states. Pennsylvania law requires drivers to purchase $5,000 in medical benefits, but does not mention PIP specifically. PIP coverage is also available, but optional, in seven additional states, plus the District of Columbia.… read full answer
Minimum PIP Coverage
$15,000 per person, $30,000 per accident
(plus $5,000 for funeral services)
$10,000 per person
$10,000 per person
$4,500 per person
(plus a $2,000 burial benefit or up to $10,000+ for care/lost wages)
$10,000 per person, per accident
$2,000 per person*
$8,000 per person, per accident
(drivers who receive Medicaid can opt out as of July 2020)
$50,000 per person
$40,000 per person, per accident
$15,000 per person, per accident
(up to $250,000 for certain life-altering injuries)
$50,000 per person
(plus a $2,000 death benefit)
$30,000 per person
$15,000 per person
Medical Benefits Required
$5,000 per person, per accident
No minimum coverage requirement
$2,500 per person
(plus up to $100/week for lost wages for up to 12 months, in some cases)
$10,000 per accident
$50,000 per person
(plus $12,000 per person for lost wages and $4,000 for funeral expenses)
PIP insurance covers medical expenses for you and your passengers after an accident, no matter who is at fault. These expenses include ambulance fees, medical and surgical treatments, and prescriptions. PIP can also reimburse you for lost wages, home care expenses, and even funeral expenses.
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