If you run a business in North Dakota and use vehicles, you’ll need commercial auto insurance to keep your company protected. North Dakota law requires your commercial auto insurance to have at least $25,000 per person and $50,000 per accident in liability coverage for bodily injury.
This insurance helps with medical costs, property damage, and legal fees if your business vehicle gets into an accident.
Commercial auto insurance isn’t the same as personal car insurance. It’s built for business vehicles, drivers, and sometimes even motorized equipment.
Having the right coverage can save your business from big financial losses or legal headaches. It’s worth knowing the minimum requirements and which extra options might actually fit your business.
Key Takeaways
- You have to carry state-required liability coverage for commercial vehicles.
- Commercial auto insurance shields your business from accident-related expenses.
- The right policy depends on your vehicle types and specific business risks.
What Is Commercial Auto Insurance in North Dakota?
Commercial auto insurance in North Dakota is built to protect vehicles used for business purposes. It covers the risks that come with driving or owning business vehicles.
This insurance is different from personal auto policies because it’s tailored for business needs.
Key Features of Commercial Auto Insurance
Commercial auto insurance covers damage to vehicles and liability for injuries or property damage from accidents. Usually, it includes liability, collision, and comprehensive coverage.
You might also get coverage for medical payments, uninsured motorists, and physical damage. Most policies let you insure several vehicles at once.
Limits and deductibles can be adjusted for your business. Some insurers offer discounts if you cover multiple vehicles or have a good driving record.
Types of Vehicles Covered
This insurance covers trucks, vans, cars, and sometimes motorized equipment used for business. Whether you’re delivering goods, transporting people, or doing a specialized job, you’re covered.
You can insure anything from sedans to heavy-duty trucks or even unique vehicles. The coverage you’ll need depends on how the vehicle’s used, its weight, and how often it’s out on business.
Who Needs Commercial Auto Insurance in North Dakota?
You’ll need commercial auto insurance if you use a vehicle for business activities—delivering products, transporting employees, or hauling tools and equipment.
Even if you only drive for work occasionally, your personal car insurance probably won’t cover accidents during business use. If you have employees who drive or own more than one business vehicle, North Dakota law says you need commercial auto insurance.
North Dakota Commercial Auto Insurance Requirements
If you use vehicles for business in North Dakota, you have to meet certain insurance requirements. These include minimum coverage amounts and some specific rules depending on your industry.
State Minimum Coverage Limits
In North Dakota, your commercial auto insurance needs at least $25,000 per person and $50,000 per accident for bodily injury. You’ll also need at least $25,000 for property damage per accident.
These are the legal minimums for driving business vehicles. If you go below these, you could face fines or other penalties.
Check your policy to make sure it lists these coverage amounts. It’s not just about following the law—it’s also about protecting your business if something goes wrong.
Legal Compliance for Businesses
North Dakota law requires you to carry commercial auto insurance at the state’s minimum limits if you own vehicles for business. This covers cars, trucks, or anything else you use for work.
You or your drivers should always have proof of insurance handy. Law enforcement might ask for it if you get pulled over.
If you don’t have enough coverage, you could end up with legal trouble, fines, or even a suspended license.
Regulations for Different Industries
Some industries have extra insurance rules on top of state minimums. Trucking companies, for example, often need higher limits because of federal regulations.
Construction businesses might need extra coverage for vehicles working on job sites, which can bump up risks—and premiums.
It’s smart to check if your industry has special requirements or endorsements for your commercial auto policy.
Coverage Options for North Dakota Businesses
When you insure business vehicles in North Dakota, you get protection from financial losses tied to accidents, damage, or injuries. You can also add extra protections if your business needs them.
Liability Coverage
Liability coverage is required—it kicks in if your driver causes injury or property damage to others. It pays for medical bills, repairs, and legal fees after an accident involving your business vehicle.
In North Dakota, liability limits cover bodily injury per person, per accident, and property damage. Pick limits that can handle bigger accidents.
This coverage usually applies to owned vehicles and sometimes to hired or borrowed ones. It’s your financial safety net if you’re at fault.
Physical Damage Protection
Physical damage insurance helps pay for repairs or replacement if your vehicles are damaged in a crash, stolen, or hit by fire or other covered events.
There are two main types: collision and comprehensive. Collision pays for damage from hitting another vehicle or object. Comprehensive handles things like theft, vandalism, or storms.
You can choose your deductible to fit your budget. Having this protection can really help your business bounce back quickly after an accident.
Additional Endorsements for Enhanced Protection
You can add endorsements to customize your policy.
- Hired and non-owned auto coverage is for vehicles you rent or borrow for business.
- Uninsured/underinsured motorist coverage helps if your driver is hit by someone with little or no insurance.
- Medical payments coverage pays medical bills for you and your passengers.
- Cargo insurance covers goods you’re hauling in your vehicles.
These options can fill in the gaps, depending on your business risks. It’s worth thinking about what you really need.
Choosing the Right Commercial Auto Insurance Policy
You’ll want to pay attention to how costs are set, who you buy from, and what it takes to get a quote. Getting these details right makes it easier to find coverage that fits your business and your wallet.
Factors Affecting Policy Costs
The price of your policy depends on a few main things. The type of vehicles you insure is a big factor—trucks, for example, usually cost more than smaller vans.
Your driving record and claims history matter too. If you or your drivers have had accidents or tickets recently, expect to pay more.
Coverage limits also play a role. The state minimums are $25,000 per person and $50,000 per accident, but higher limits will cost you extra. Adding things like collision or comprehensive coverage will bump up your premium.
How much and how often you use each vehicle also affects your rate. The more you drive, the higher the risk—and the cost.
Selecting an Insurance Provider in North Dakota
Look for a provider licensed in North Dakota. Find companies with good financial strength and solid customer service.
It helps if they’ve worked with businesses like yours before. Some insurers focus on certain industries or vehicle types, which can mean better options.
Ask about discounts for safe driving, bundling policies, or safety training. Every bit helps.
And make sure they handle claims quickly and fairly. When something happens, you’ll want an insurer who’s got your back.
How to Obtain a Commercial Auto Insurance Quote
Start by jotting down all the vehicles you want to insure. Make sure you’ve got the make, model, year, and what you use each one for.
Don’t forget to gather driver info too—think age, license status, and a bit about their driving history.
Reach out to a few insurers directly. Or, if you’re not up for a bunch of phone calls, try an online comparison tool.
Give everyone the same details so you’re actually comparing apples to apples.
Go through each quote and look for coverage limits, deductibles, and any fine print about what’s not covered.
If something doesn’t make sense, ask! It’s better to get clarity than to end up with a policy that doesn’t fit your business.