Cheap North Dakota Low-Income Car Insurance for Families and Individuals

North Dakota does not offer government assistance programs to help low-income families and individuals with the cost of car insurance. MoneyGeek’s analysis of the cheapest insurers for low-income drivers shows that Nodak Mutual provides the most affordable coverage in the state.

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Last Updated: 4/19/2022
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When insurers calculate car insurance rates, your income level is not considered. The top influencers in the cost of insurance include your age and if you have a teen driver on your policy. MoneyGeek established the best car insurance options for low-income individuals in North Dakota with good and bad credit scores.

Is There Car Insurance for Low-Income Families and Individuals in North Dakota?

Although North Dakota does not have a government assistance program for low-income drivers to purchase it, car insurance is compulsory. Uninsured motorists form 13% of the state’s drivers, many possibly unable to afford car insurance.

The cheapest car insurance for low-income families in North Dakota is a state minimum policy, although it offers the least coverage. There’s also pay-per-mile insurance which may be a good option for infrequent drivers.

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Does North Dakota Have a Government Program to Support Low-Income Drivers with Insurance?

Low-income drivers in North Dakota do not get any government assistance for their car insurance costs. To secure the cheapest car insurance possible for their needs, drivers should compare quotes from several providers. MoneyGeek scored the cheapest providers in the state to help low-income drivers save on their premiums.

The Cheapest North Dakota Car Insurance Companies for Low-Income Drivers

Several factors determine the cost of low-income car insurance in North Dakota, including your credit score, coverage level you select and your age. Your income does not affect your premiums. If you wish to pay the lowest rates for your policy, consider purchasing minimum coverage.

MoneyGeek determined the most affordable car insurance providers across different ages and credit scores in the state. We found the cheapest car insurance company in North Dakota for different types of low-income drivers is Nodak Mutual.

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The Cheapest North Dakota Car Insurance Companies for Low-Income Families

In North Dakota and most other states, car insurance costs are not affected by your income. However, your rates differ considerably based on your credit score. According to MoneyGeek’s research, a single parent with a teen driver and poor credit will pay $1,042 per year more than their counterpart with good credit. Similarly, a couple with a teenage driver and poor credit can pay as much as $1,247 more per year than if they had a good credit score.

Our research finds that the most affordable car insurance providers for low-income couples with a teen driver and poor credit in North Dakota are:

  • Nodak Mutual: $1,582 per year
  • AAA: $2,175 per year

USAA also provides the cheapest car insurance coverage for individuals and families with a military background, with $1,301 as the annual cost.

If you are a low-income single parent with a teenage driver and poor credit, the cheapest providers in North Dakota are: :

  • Nodak Mutual: $1,200 per year
  • GEICO: $1,679 per year

USAA provides the most affordable car insurance coverage for military members and their families at $1,011 per year.

You don’t automatically have poor credit if you have a low income. You can toggle between poor and good credit scores in the following table to compare the rates for your profile.

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  • Company
    Annual Rates
  • USAA
    $549
  • Nodak Mutual
    $652
  • GEICO
    $912
  • AAA
    $919
  • State Farm
    $980
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The Cheapest North Dakota Car Insurance Companies for Low-Income Individuals

North Dakota drivers with a poor credit score pay as much as $311 more per year than those with good credit.

Based on our analysis, the cheapest car insurance in North Dakota for low-income individuals with a poor credit score is from:

  • Nodak Mutual: $394 per year
  • GEICO: $537 per year

If you’re a veteran or currently in the military, you can get cheaper coverage from USAA for approximately $324 per year.

Note that you can have a good credit score despite a low income, resulting in cheaper car insurance rates. For example, with a good credit score, you will pay on average $214 per year for a Nodak Mutual policy and $292 for a GEICO policy.

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  • Company
    Annual Rates
  • USAA
    $176
  • Nodak Mutual
    $214
  • GEICO
    $292
  • AAA
    $295
  • State Farm
    $314

The Cheapest North Dakota Car Insurance Companies for Low-Income Students

Insurers in North Dakota charge student drivers higher premiums due to their lack of driving experience. The high rates do not result from a student’s low income, although a good portion of that income goes toward car insurance. Generally, students with a poor credit score pay about $726 more than those with good credit.

MoneyGeek’s research shows the most affordable providers of car insurance for low-income students in North Dakota with poor credit are:

  • Nodak Mutual: $921 per year
  • GEICO: $1,253 per year

Student drivers from military families can purchase even cheaper car insurance from USAA at an annual average cost of $757.

Even if you are a low-income student, you can still have a good credit rating and save on your car insurance costs. Nodak Mutual policies cost an average of $500 per year for student drivers with a good credit rating, while GEICO policies cost $681 per year.

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  • Company
    Annual Rates
  • USAA
    $411
  • Nodak Mutual
    $500
  • GEICO
    $681
  • AAA
    $688
  • State Farm
    $734

The Cheapest North Dakota Car Insurance Companies for Low-Income Seniors

In North Dakota, car insurance companies charge senior drivers higher premiums than middle-aged drivers. Rates are also higher if you’re a senior with a poor credit score. From the quotes we sourced using a sample 70-year-old driver, senior drivers pay approximately $324 more if they have a poor credit score.

From our findings, the two cheapest car insurance carriers for low-income seniors with poor credit in North Dakota are:

  • Nodak Mutual: $358 per year
  • AAA: $466 per year

USAA provides the second-cheapest coverage for senior drivers who are veterans or current military members at approximately $406 per year.

Having a low income does not automatically mean you have a poor credit score. And if you have good credit, you’ll pay less for your car insurance. Low-income seniors with good credit pay an average of $195 per year for a policy from Nodak Mutual and $253 at AAA.

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Good Credit Score

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  • Company
    Annual Rates
  • Nodak Mutual
    $195
  • USAA
    $221
  • AAA
    $253
  • GEICO
    $271
  • State Farm
    $314

Does Income Affect Car Insurance Rates in North Dakota?

North Dakota car insurance companies do not use your income to determine car insurance premiums but consider income-related factors such as your age and credit score. For instance, insurers charge higher premiums to young drivers since they are more likely to get into accidents. They also assign higher rates to drivers more likely to file claims based on their claims history. Typically, drivers with lots of claims tend to be low-income.

MoneyGeek analyzed factors that impact car insurance rates in North Dakota and discovered that the top three include:

  • Adding a teen driver.
  • Age of the driver.
  • Coverage level.

Several other factors also influence the cost of car insurance coverage. These include your credit score and the model of your car.

  • Factor
    How it Affects Your Rates
  • Adding a Teen Driver

    If you add a teen driver to your policy in North Dakota, you will pay up to 3.3x more for car insurance.

  • Age of Driver

    Age is the second-most influential factor in North Dakota. Rates are 2.4x more for student drivers than middle-aged drivers.

  • Coverage Levels

    The coverage level you purchase in North Dakota determines your rates. A full coverage policy costs 2.3x more than minimum coverage.

  • Credit Score

    If you have a poor credit score, you will pay 2.2x more than drivers with a good score.

  • Car Model

    Insurance rates can be twice as expensive depending on the model of your car.

Frequently Asked Questions About Low-Income Car Insurance in North Dakota

Below, MoneyGeek answers frequently asked questions about low-income car insurance in North Dakota to help you find the best coverage for your needs at an affordable price.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in North Dakota using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple each 40 years old or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in North Dakota.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.