After buying a vehicle, the next thing you should do is purchase a North Dakota auto insurance policy. But if you’re wondering how much car insurance coverage you need, here’s what you need to know:
There is no fixed answer to how much car insurance coverage a vehicle owner should have. That is because the “right” amount of auto insurance a car owner needs depends on a lot of factors such as:
- The type of car you drive
- their driving history (if they had been involved in previous road accidents or had prior DUIs)
- other assets they need to protect
- and of course, what basic auto insurance coverage their state requires.
In most states, drivers must have car insurance coverage. For instance, in North Dakota, all vehicles must have an insurance policy that could cover up to a certain amount for medical fees per person if the accident inflicted bodily injuries.
Vehicles must also carry property damage liability, which provides coverage for claims brought against you for damage caused to someone else’s property through the operation of your vehicle.
Additionally in North Dakota, Uninsured/Underinsured Motorist Coverage and No-Fault Coverage is required.
That being said, while you can go ahead and only purchase what is required by your state, keep in mind that it will only cover a certain amount. You would still have to shoulder any costs that would exceed that fixed amount. That’s why it’s wiser to buy car insurance with higher limits or more excellent coverage so you could get maximized protection.
The common types of auto insurance coverage are as follows:
- Bodily injury liability – Bodily injury liability provides coverage for claims brought against you for bodily injury caused to another person through the operation of your vehicle.
- Property damage liability – Property damage liability provides coverage for claims brought against you for damage caused to someone else’s property through the operation of your vehicle. Also covers damage to a car you rent for personal use on a short-term basis.
- Uninsured motorist coverage – Uninsured motorist provides you coverage for a bodily injury claim you would have against another driver who does not have insurance. This coverage does not pay for physical damage to your vehicle.
- Underinsured motorist coverage – underinsured motorist coverage must be equal to the uninsured motorist coverage. Underinsured motorist provides you coverage for a bodily injury claim you would have against another driver whose liability coverage is less than your underinsured coverage.
- Basic no-fault – Basic no-fault provides you coverage for economic loss (such as medical expenses and work loss) as a result of an accidental injury without regard to fault. No-fault is also known as Personal Injury Protection (PIP).
- Collision coverage – provides coverage for physical damage to your vehicle that is caused by colliding with some other vehicle or object, or on overturning the vehicle. It pays regardless of who causes the accident.
- Comprehensive coverage – provides coverage for physical damage to your vehicle caused by items other than collision such as theft, fire, vandalism, hail, falling objects or hitting an animal.
- Towing – provides coverage to reimburse you for towing expenses involved in an emergency situation.
- Death and dismemberment – provides accidental death and dismemberment coverage.
- GAP coverage – provides payment to your lender for the difference between the amount of your auto loan and the actual cash value payment, if your vehicle is either stolen or a total loss.
Turn to Farmers Union Insurance Today
Are you planning to get a North Dakota auto insurance policy? Don’t hesitate to get in touch with one of our local agents. They can help you make an informed decision on the type of coverage your car needs.
