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Updated: July 20, 2026

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What Commercial Auto Insurance Is Required in North Dakota?

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 mandates uninsured/underinsured motorist coverage ($25,000/$50,000) and personal injury protection ($30,000) on every commercial policy alongside the 25/50/25 liability minimum. Meeting the liability floor while omitting UM/UIM or PIP still leaves a policy out of compliance 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.

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WHEN DOES FEDERAL LAW APPLY OVER NORTH DAKOTA LAW?

Federal commercial auto insurance requirements override North Dakota state minimums when your operations involve transporting cargo or passengers across state lines, or if you move cargo as part of an interstate shipment even if your leg stays within North Dakota. The federal threshold begins at 10,001 lbs GVWR for for-hire property carriers, triggering the $750,000 CSL minimum. Private carriers hauling their own goods interstate need a USDOT number but don't have the same federal insurance filing requirement.

North Dakota Commercial Auto Insurance Requirement Exemptions

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.

Commercial vehicle over 20,000 lbs GVWR
UM/UIM coverage not required; liability and PIP still apply
Covered farm vehicle (intrastate or within 150 air miles)
Exempt from CDL under NDCC § 39-06.2; 25/50/25 liability still required
Vehicle used only for personal, non-business purposes
Personal auto insurance rules
Off-road equipment not driven on public highways
Not subject to on-road insurance mandates
Government vehicle under authorized self-insurance
Government self-insurance statutes
Vehicle not registered for road use (yard-only, private property)
No road-use liability requirement

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.

North Dakota Commercial Auto Insurance Alternatives

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). A lapsed certificate leaves 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.

Special North Dakota Commercial Auto Insurance Coverage Circumstances

These situations in North Dakota create insurance obligations beyond the standard minimums. Operations that don't involve leases, border commerce or Bakken oil field work need only the base requirements covered in the earlier sections.

  • oneSign icon
    Leased commercial vehicles

    Lessors either add the lessee to their policy or require lessee-purchased coverage meeting state standards. Gap insurance covers the difference between actual cash value and the remaining lease balance.

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    Canadian border commerce

    U.S. commercial auto policies extend into Canada under reciprocal agreements, but carry a Canadian Non-Resident Inter-Province Motor Vehicle Liability Insurance Card at Pembina, Portal and other crossings. For-hire carriers running regular Canadian routes may need provincial registration and separate coverage per the U.S. Department of State's Canada travel advisory.

  • threeSign icon
    Oil field operations

    Energy companies in the Bakken region contractually require $1,000,000 or more in auto liability plus general liability and pollution coverage before granting site access. North Dakota law doesn't mandate these levels, but without them you won't get on site at Williston, Watford City or Tioga job locations.

North Dakota Commercial Auto Insurance Enforcement and Penalties

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.

First violation
$150–$1,000
License suspended until proof provided; 14 violation points
Proof of insurance on file for one year; $50 duplicate license fee with insurance notation
Second or subsequent violation
$300–$1,500
License suspended; plates impounded; up to 30 days jail
SR-22 or Certificate of Motor Vehicle Liability Insurance (SFN 54148) filed; extended monitoring
Failure to provide proof within 20 days
$150 minimum
License suspended; six violation points
Proof of valid coverage for date of citation
Points reach 12 (within 18 months)
Per court
Full license suspension
Certificate of insurance on file for three years; reinstatement fees and process

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.

How to Verify Your North Dakota Commercial Auto Insurance Meets State Requirements

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

  1. 1

    Check your vehicle's registration class

    Confirm vehicles are registered as commercial. Contact the North Dakota Department of Transportation at 701-328-2725 with questions.

  2. 2

    Match your declarations page to the 25/50/25 liability floor

    Bodily injury per person ($25,000), per accident ($50,000) and property damage ($25,000) must all meet NDCC § 39-08-20 minimums.

  3. 3

    Confirm UM/UIM coverage appears on your policy

    North Dakota mandates $25,000/$50,000 UM/UIM under NDCC §§ 26.1-40-15.2 and 15.3. It can't be waived.

  4. 4

    Look for the $30,000 PIP line item

    NDCC Chapter 26.1-41 requires no-fault PIP covering medical expenses, lost wages and necessary services regardless of fault.

  5. 5

    Determine whether federal FMCSA minimums apply

    Vehicles at 10,001 lbs GVWR or more hauling cargo for hire interstate need $750,000 CSL. Passenger carriers have even higher thresholds: $1,500,000 for 9–15 passengers and $5,000,000 for 16 or more.

  6. 6

    Review any required endorsements or filings

    Prior violations may require an SR-22 or Certificate of Motor Vehicle Liability Insurance (SFN 54148) on file with the North Dakota Department of Transportation.

  7. 7

    Carry proof of insurance in every vehicle

    Missing proof is a Class B misdemeanor with a $150 minimum fine.

North Dakota Commercial Auto Insurance Requirements: Bottom Line

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.

North Dakota Commercial Auto Insurance Requirements: Next Steps

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.

If you're launching a business with commercial vehicles in North Dakota

If your fleet includes vehicles over 10,001 lbs or runs interstate routes

If you drive for Uber, Lyft or another TNC in North Dakota

If your routes cross into Manitoba or Saskatchewan

If your vehicles carry farm plates

About Connor Bolton

Connor Bolton, Senior SEO and Content Manager (Business & Pet), MoneyGeek

Connor Bolton is Senior SEO and Content Manager at MoneyGeek, where he leads the business and pet insurance editorial teams. He sets the research framework, data standards and content structure for his team. All content goes through his accuracy review before publication. Connor also writes in-depth guides and has spent more than four years covering insurance products across personal, commercial and specialty lines.

The research infrastructure Connor built covers auto, home, renters, life, health, business and pet insurance across pricing analysis, carrier research, customer experience and coverage evaluation. It includes over 6 million data points for business insurance across 408 industry areas, all 50 states and 16 vehicle types. The pet insurance side covers over 5 million profiles across 18 major providers, 100+ breeds and ages up to 20 years. Connor’s insurance research and his team's work have been cited by the U.S. Chamber of Commerce, Allstate, Liberty Mutual, CBS News, Forbes and LegalZoom.

Connor also talks with underwriters and carrier liaisons at Ethos, The Hartford, ERGO NEXT, Nationwide and State Farm, and monitors business and pet owner communities on Reddit. Those sources shape how his team evaluates carriers, structures rate analysis and writes content for real pet owners.

Questions about MoneyGeek's business or pet insurance content? Reach him at connor@moneygeek.com or on LinkedIn.

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