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Teen Driver Insurance in North Dakota: Parent Guide

North Dakota requires 25/50/25 liability coverage and is a no-fault state.

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North Dakota at a Glance

25/50/25

Minimum liability limits, in thousands of dollars (per person / per accident / property)

No-fault

Each driver's own policy pays their injuries first, whoever caused the crash

Required

PIP and Uninsured motorist coverage must be on every policy

Minimum learner's permit age, 50 supervised driving hours

Source: state DMV, insurance department and statute records, verified July 2026

State Requirements

The state also operates a three-stage graduated licensing system: learner's permit at 14, intermediate license at 15, and full unrestricted license at 16 after holding an intermediate license for at least six months and completing 50 supervised driving hours. North Dakota Century Code 26.1-40-27 mandates that all insurers licensed in the state must offer good student discounts to drivers under 25 who maintain a B average or equivalent GPA, making this one of the few states where the discount is legally required rather than carrier-discretionary.

Bodily Injury Liability

North Dakota's 25/50 minimum is among the lowest in the country and may not adequately cover injuries in a serious accident involving a teen driver.

Property Damage Liability

Uninsured/Underinsured Motorist Coverage

North Dakota requires insurers to offer UM/UIM coverage matching liability limits, though parents can decline it in writing.

Collision Coverage

Collision is optional unless financing or leasing a vehicle, but teen drivers have significantly higher accident rates than experienced drivers.

Comprehensive Coverage

Comprehensive covers non-collision losses like theft, hail, and animal strikes—particularly relevant in North Dakota where deer collisions are common in rural areas and severe hail events occur regularly during spring and summer months.

Cost Overview

$153–$345/mo

Typical monthly rate in North Dakota, adding a driver aged 16–19 to a parent's policy

Rate data: Insurify and ValuePenguin, 2025

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Rules for new drivers

Night driving

restricted license only; sunset-sunrise for under-16 restricted

Passengers

graduated; no more than 1 passenger under restricted license

Source: IIHS and state DMV records, verified July 2026

Frequently Asked Questions

What are North Dakota's graduated licensing restrictions and do they lower insurance rates?

North Dakota issues learner's permits at 14, intermediate licenses at 15 (with midnight–5 a.m. curfew and passenger restrictions for six months), and full licenses at 16 after holding an intermediate license for six months and completing 50 supervised hours. These restrictions don't significantly reduce insurance costs, as carriers price primarily on age and experience rather than license type, though some offer small discounts for permit holders who only drive with supervision.

Coverage Types

Liability-Only for Older Vehicles

State minimum 25/50/25 liability plus uninsured motorist coverage, without collision or comprehensive. Appropriate for teen drivers operating vehicles worth less than $5,000 where the cost of full coverage exceeds the vehicle's replacement value.

Enhanced Liability Limits

Increasing bodily injury limits from the state minimum 25/50 to 100/300 and property damage from $25,000 to $100,000. Recommended for families with assets to protect or teens driving in higher-traffic areas where multi-vehicle accidents are more likely.

Full Coverage with Higher Deductibles

Comprehensive and collision coverage with $1,000 deductibles instead of $500, balancing protection for a financed or newer vehicle against monthly cost. The teen or parent pays the first $1,000 of damage, but monthly premiums decrease by 15–25%.

Comprehensive-Only for Stored Vehicles

Comprehensive coverage without collision for vehicles stored during college or winter months when the teen isn't driving. Protects against theft, fire, vandalism, and weather damage while the vehicle isn't in regular use.

Full Coverage with Telematics Discount

Comprehensive, collision, and enhanced liability combined with enrollment in a carrier's telematics program that monitors and rewards safe driving behavior. Initial discount of 5–10% for enrollment, increasing to 15–25% based on driving performance.

Named Driver Exclusion

Formally excluding a teen driver from a parent's policy to avoid premium increases, used only in situations where the teen will never drive the family vehicles. The excluded driver is not covered under any circumstances, and any accident while driving results in a claim denial.