Commercial Auto Insurance in North Dakota
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Commercial auto insurance in North Dakota

Commercial auto insurance covers the cost of medical bills and other expenses if a business-owned vehicle is involved in an accident. It's required for any vehicles used solely for work purposes in North Dakota.

Who needs commercial auto insurance in North Dakota?

Any North Dakota company that uses vehicles for business purposes must have commercial vehicle insurance, whether it’s the owner’s personal vehicle or a fleet of vehicles owned by the business.

Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses. A business auto policy would cover you and your personal vehicle in case you’re at fault for an accident during a work-related errand.

Any vehicles you own solely for work purposes must be covered by a commercial auto policy, whether you own a single pickup truck, a food truck, or a fleet of semi-trucks and tractor trailers.

Why is commercial auto insurance important?

Your business could be in legal and financial jeopardy without commercial auto insurance coverage. In North Dakota, any business that has its own vehicles must at least carry auto liability insurance.

If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related costs.

Additionally, you could face severe penalties for not carrying auto insurance. Driving without insurance in North Dakota is a Class B misdemeanor and is punishable by a mandatory fine of at least $150. Additionally, you will be required to file an SR-22 form with the state, and may receive a suspension of license and/or vehicle registration.

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How does commercial auto insurance work in North Dakota?

From Fargo to Bismarck, all vehicles in North Dakota are required by law to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use. These insurance requirements are:

  • Bodily injury liability: $25,000 per person / $50,000 per accident
  • Property damage liability: $25,000 per accident
  • Uninsured motorist coverage: $25,000 per person / $50,000 per accident
  • Personal injury protection: $30,000 per person

Your insurance agency might recommend higher limits based on the types of vehicles you own and how they’re used.

Semi-trucks, tractor-trailers, and other vehicles with a North Dakota Department of Transportation serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.

You can see if your business needs these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.

How much does commercial car insurance cost?

Person calculating the cost of commercial auto insurance with trucks in background.

Your premium is based on a few factors, including:

  • Number of vehicles
  • Vehicle type and value
  • Level of risk involved
  • Claims history
  • Employee driving records
  • Policy deductible and limits

Commercial auto insurance costs a median of $142 per month. 44% of Insureon small business customers pay less than $125 per month for their policies.

What if I use my personal vehicle for work?

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto insurance (HNOA). This liability policy covers accidents in personal, leased, and rented vehicles used for work purposes.

If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. It’s worth noting that this would not cover damage to the vehicle used by your business.

What else does commercial auto insurance cover?

While every North Dakota business owner must meet the minimum requirements for business auto insurance, this mandate only applies to liability coverage. This can protect you if one of your vehicles causes an accident, but it does not insure you against a mishap caused by someone else.

It’s worth considering these other commercial auto coverage options to make sure you’re fully protected:

  • Uninsured/underinsured motorist coverage insures you against personal injuries and damage involving a company vehicle, in case whomever caused the accident is unable to cover the full cost of damages.
  • Medical payments coverage pays for medical expenses if employees and passengers are injured in a company-owned vehicle, regardless of who is at fault.
  • Collision coverage helps pay for the cost of repairing or replacing your company vehicle if it’s damaged in an accident, regardless of who was at fault.
  • Comprehensive coverage covers the costs of non-collision damages such as vandalism, theft, flood, or fire.
  • Towing and labor coverage covers the cost of roadside assistance for company-owned vehicles.
  • Loading and unloading coverage insures against the damage of equipment and materials during transport, loading, or unloading.
  • Bobtail coverage is recommended when you’re using tractors without a trailer. It usually covers the insured vehicle at all times, even during non-work-related uses.

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