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 a month for car insurance coverage which makes it the 39^th most expensive state in the country.

Even though car insurance is pretty expensive in North Dakota, it’s possible to find affordable coverage with top insurers such as American Family, Nationwide, Progressive, and other insurers.

American Family is our choice for the best car insurance in North Dakota. It finished first in our rankings with 4.83 out of 5 stars and an average premium of $1,092 a year, or $91 a month, which is $573 less than the state average.

Auto-Owners was second with a score of 4.13 stars followed by Nationwide with 3.93 stars.

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 and 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 has the lowest average rate in North Dakota at $1,092 a year or $91 a month.

Nationwide is the next most affordable at $1,152 annually and Progressive at $1,403. While these insurers had the cheapest average premiums, there are plenty of other options for coverage in the state.

Insurers consider a wide variety of factors when setting a rate and use proprietary algorithms which can result in dramatic differences in premium quotes. 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. “North Dakota, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

The data shows how shopping around for coverage can result in savings. While American Family had the lowest average rate at $1,092, Allstate was the most expensive at $2,339.

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.

Cheapest full-coverage insurance in North Dakota

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Full coverage car insurance in North Dakota

As noted, the rates above are for full coverage car insurance. Full coverage car insurance simply means you are carrying liability and any other state requirements as well as collision and comprehensive.

Full coverage insurance includes collision and comprehensive, which protects your own vehicle. Collision insurance will pay to repair your vehicle when it is damaged after colliding with another vehicle or object. Comprehensive covers damage that is done by perils such as fire, theft, flooding, vandalism, and more.

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

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

American Family is the cheapest insurer in North Dakota for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $2,701 which is 175% more expensive than the most affordable coverage for seniors at $983 and 73% more than young drivers’ best rate of $1,563.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in North Dakota

Seniors in the state pay more for coverage than all other driver groups, except for teens. American Family is the most affordable option for seniors with a yearly premium of $983 or $82 a month. Nationwide was the second cheapest at $1,029 and Progressive rounded out the top three at $1,346.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

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

North Dakota is the 39^th most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $1,665.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

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

Insurers consider the ZIP code where your car is parked when setting a premium. High crime rates or frequent severe weather will result in a higher premium.

According to our analysis, the following ZIP codes are the most expensive in North Dakota for car insurance. Selfridge tops the charts at $1,860 a year.

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?

The cheapest ZIP codes for car insurance in North Dakota tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. West Fargo has the most affordable ZIP code in North Dakota 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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