Updated March 2026
State Requirements
North Dakota requires minimum liability coverage of 25/50/25: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage. 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.
Cost Overview
Teen driver insurance costs in North Dakota are driven primarily by age and experience, with 16-year-olds representing the highest risk category and correspondingly highest premiums. Adding a teen to an existing parent policy is almost always cheaper than purchasing a separate policy due to multi-car and multi-line discounts, but the cost difference between adding a 16-year-old with a learner's permit versus an 18-year-old with two years of clean driving history can exceed $1,500 annually.
What Affects Your Rate
- Good student discount (legally mandated in North Dakota for drivers under 25 with B average or better): typically reduces premiums by 10–20% and remains available through college years if transcripts are submitted annually
- Telematics programs offered by most major carriers in North Dakota: monitor braking, acceleration, cornering, and late-night driving to provide discounts of 10–25% for safe driving behavior, particularly valuable for demonstrating responsible teen driving habits
- Vehicle choice: adding a teen to a 2015 Honda Civic policy typically costs 30–50% less than adding them to a 2022 pickup truck due to repair costs, safety ratings, and theft rates—a critical consideration for North Dakota families where trucks are common
- Driver training completion: while North Dakota doesn't require formal driver's education for licensing, most insurers offer 5–10% discounts for teens completing approved courses, and the discount often stacks with good student discounts
- Rural vs urban location: teen drivers in Fargo or Bismarck typically face premiums 15–25% higher than those in rural counties due to traffic density and accident frequency, though rural areas may see higher comprehensive claims from animal collisions
- Add-to-parent vs separate policy: adding a teen to a parent's existing multi-car policy costs 60–75% less than purchasing a standalone policy for the same teen due to multi-car, multi-line, and tenure discounts the parent has already earned
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Get Your Free QuoteCoverage 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.
