The best, cheapest car insurance in North Dakota

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Best car insurance company in North Dakota

Drivers in North Dakota pay an average of $1,665 a year, or $139 per month, which is the 39^th highest in the country, according to our research.

Actual car insurance rates vary by company, and American Family, Auto-Owners, and others continue to offer some of the most competitive premiums in North Dakota.

When it comes to the best cheap car insurance in North Dakota, American Family is our No. 1 choice followed by Auto-Owners and Nationwide.

American Family scores well with third-party rating organizations and it has an average premium in North Dakota of $1,092 a year, or $91 a month, which is roughly $573 less than the North Dakota average.

The best car insurance companies in North Dakota

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state/regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in North Dakota

American Family is the cheapest option for car insurance in North Dakota.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age and marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The numbers highlight these differences. Allstate is the most expensive insurer in North Dakota with an average premium of $2,339 a year.

On the other hand, as mentioned above, the average premium for American Family policyholders in North Dakota is $1,092 a year. Nationwide had the second cheapest coverage in North Dakota at $1,152 and Progressive rounded out the top three cheapest at $1,403.

Below is a list of the cheapest full-coverage car insurance rates in North Dakota for a 40-year-old driver of a 2023 Honda Accord LX.

Cheapest full-coverage insurance in North Dakota

Full coverage car insurance in North Dakota

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

Shopping for car insurance in North Dakota

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – he will recommend higher coverage.

“Depending on their age/income and profession,” he says, “I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in North Dakota by age

Car insurance rates will vary by age as reams of statistics show that teen and young adult drivers, because they are inexperienced on the road, take bigger risks and are more likely to get in anaccident and file a claim, which is why they pay more for coverage than older more experienced drivers.

American Family turned out to be the best insurer in North Dakota for drivers of all ages. The numbers show the difference between young and old drivers with the lowest premium for a teen coming in at 91% more than the lowest premium for a senior driver.

Once a driver hits 25, rates will start to drop, assuming they keep their driving record clean, and will stay stable until their 70s when they will start climbing a bit.

Cheapest car insurance for senior drivers in North Dakota

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In North Dakota, the cheapest insurance company for senior drivers is American Family at $983 a year or $82 a month. Nationwide grabbed the second-place spot with premiums running $1,029 annually or $86 a month, Progressive was third at $1,346.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in North Dakota

Car insurance for young drivers in North Dakota

While rates start to drop for teen drivers as they become young adults, they still pay slightly higher rates than more experienced drivers. According to our data, American Family is the cheapest insurer for drivers in their early 20s with an average premium of $1,563 a year or $130 per month.

Nationwide was the second cheapest insurer at $1,823 and Progressive will insure a young driver in North Dakota for $2,232 a year.

Rates will continue to drop (assuming a clean driving record) as drivers hit their late 20s and move into their 30s.

The chart below shows the average premiums for young drivers.

Average rates for young drivers in North Dakota

Car insurance for teen drivers in North Dakota

Although teen drivers always pay much higher premiums than other driver groups, American Family offers teens the cheapest rate at $2,701. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

Nationwide has the second most affordable premium at $3,357 a year followed by Auto-Owners at $3,967 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While American Family was the most affordable at $2,701, Allstate was the most expensive with an annual premium of $9,238.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

The chart below shows average premiums for teens in North Dakota:

Average rates for teens in North Dakota

Average cost of car insurance in North Dakota

The average cost of car insurance in North Dakota is $1,665, which makes it the 39^th most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like North Dakota,” says Gao.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Average rates for a 40-year-old in Idaho

Which North Dakota ZIP codes are most expensive for car insurance?

Car insurance costs in North Dakota can vary significantly based on your location, as insurers consider the ZIP code where your vehicle is primarily parked when determining your premium.

Our data shows that the Selfridge area came out as the most expensive with an average annual premium of $1,860. Cannon Ball was No. 2 and Fort Yates was No. 3.

Here are the most expensive ZIP codes in North Dakota for car insurance:

Most expensive ZIP codes in North Dakota

Which North Dakota ZIP codes are the cheapest for car insurance?

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in North Dakota is in West Fargo with an annual premium of $1,378.

Least expensive ZIP codes in North Dakota

Cheapest car insurance for high-risk drivers in North Dakota

If you have an incident on your driving record, you may be considered a high-risk driver, and you will pay more for coverage. A speeding ticket, at-fault accident, or DUI can send your premium skyrocketing.

When we ran the numbers, we found that a speeding ticket in North Dakota will push the average rate to $1,559 and an at-fault accident will push it to $1,852.

An accident will stay on your record for at least three years so you will be paying a higher premium for quite a while after an accident.

A DUI will usually result in a massive increase and could push your premium into unaffordable territory. If you are convicted of a DUI, your rate on average will climb to $2,767 a year. A DUI will be reported to insurers for three years, and if you are a commercial driver, it stays on your record for 55 years.

The table below shows the average increase for drivers with various incidents on their record:

How much rates increase in North Dakota after a traffic incident

Minimum car insurance requirements in North Dakota

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. North Dakota requires drivers to carry 25/50/25 in liability coverage, which translates into:

• $25k for bodily injury and $50,000 for death for a person involved in an accident
• $50k for bodily injury and $100,000 for death for two or more people in an accident
• $25k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like North Dakota.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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