North Dakota Commercial Auto Insurance Requirements

Under NDCC § 39-08-20, every motor vehicle registered in North Dakota must carry liability coverage at these commercial auto insurance requirements minimums:

• $25,000 for bodily injury or death of one person per accident
• $50,000 for bodily injury or death of two or more people per accident
• $25,000 for property damage per accident

North Dakota also requires uninsured/underinsured motorist coverage ($25,000/$50,000) and personal injury protection ($30,000) on every commercial policy. A policy that meets the 25/50/25 liability floor but omits UM/UIM or PIP doesn't comply with state law. These requirements don't apply to vehicles used exclusively for personal purposes or off-road equipment that never travels on public highways.

North Dakota's most distinctive exemption: any vehicle over 20,000 lbs GVWR is exempt from mandatory UM/UIM, though liability and PIP still apply. Don't confuse CDL exemptions with insurance exemptions: hauling for hire on farm plates is illegal and can void your coverage through a material misrepresentation finding.

City ordinances in Fargo, Bismarck, Grand Forks and Williston can layer additional requirements on top of state exemptions. The North Dakota Insurance Department and your local licensing office can confirm whether a specific exemption applies to your operation.

Three alternatives satisfy North Dakota's financial responsibility requirements under NDCC Chapter 39-16.1 and NDCC § 26.1-41-02(2).

• Self-insurance certificate: The North Dakota Insurance Commissioner issues certificates under ND Admin Code § 45-05-01 with a $155,000 per-vehicle security deposit ($30,000 PIP + $50,000 BI + $25,000 PD + $50,000 UM). Letting the certificate lapse makes every vehicle on it uninsured until renewal is approved.
• Cash bond: A $25,000 bond filed with the North Dakota Department of Transportation satisfies proof of financial responsibility, most often after a violation.
• Cash deposit: A deposit in the amount of damages can substitute for a policy after an accident triggers a filing requirement. This is a post-incident remedy, not a standing alternative.

These situations in North Dakota create insurance obligations beyond the standard minimums. If your operations don't involve leases, border commerce or Bakken oil field work, the base requirements in earlier sections are all you need.

North Dakota doesn't use an electronic insurance verification system. Officers verify coverage by asking for proof during traffic stops under NDCC § 39-08-20.

North Dakota's "No Pay, No Play" law under NDCC § 26.1-41-20 bars previously convicted uninsured drivers from recovering non-economic damages in future accidents, even when they aren't at fault.

Use these steps to confirm your vehicles meet North Dakota and, if applicable, federal commercial auto insurance rules.

Because North Dakota requires liability, UM/UIM and no-fault PIP on every commercial policy, your coverage baseline is already higher than in most states before federal rules enter the picture. Get quotes from multiple North Dakota-licensed insurers, verify each proposal covers all three mandates plus any applicable federal minimums, and get commercial auto insurance coverage that keeps pace as your fleet or routes change.

Now that you know which insurance requirements apply to your vehicles, the next step is confirming your coverage matches the correct category for your operations.