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North Dakota introduces cost comparison tool for car insurance

The State Department of Insurance has released the results of its annual survey comparing prices

The North Dakota Department of Insurance has released the results of its annual auto insurance cost comparison and is providing a helpful tool to help drivers in the state find the right coverage at the right price.

The survey involved obtaining quotes for six-month policies

The department solicited quotes from auto insurance companies in the state for 12 different hypothetical drivers seeking a six-month policy. The goal of the survey was to better understand how premiums vary among motorists in the state based on categories such as household size, location, driver gender, vehicle insured and applicant's driving history.

This year, about 20 insurers participated in the survey. These 20 represent more than 80 percent of policies sold in the state, according to data from the Ministry of Insurance. The results of the survey were published on the ministry's official website.

Car insurance premiums are rising in North Dakota

Although some parts of the country are seeing higher increases, North Dakota drivers are paying more for their insurance than in previous years, according to a statement North Dakota Insurance Commissioner Jon Godfread made when releasing the survey results.

In addition to discussing some of the survey's key findings, Godfread also highlighted the current issues facing the auto insurance market not only in the state, but overall.

“The U.S. insurance industry is currently facing a tough market,” Godfread said, speaking of the results of the department's survey. “That means premiums are rising and coverage options are becoming more restrictive.”

Several reasons for the higher prices

Godfread took the time to discuss some of the reasons why the state's insurers are charging higher prices to insure vehicles on North Dakota's roads, citing in part issues related to rising inflation. Godfread explained that recent inflation trends have made it more expensive to repair damaged vehicles or replace stolen ones. This situation, he said, has exacerbated and contributed to the auto parts shortages that have plagued the industry in recent years.

“Since the policies are typically contracts with a term of six to 12 months, it will take some time for insurers to recover,” he said.

He also recommended that state residents check with their insurance agent regularly to ensure they are finding the best ways to save money when purchasing or renewing their policies.

Anna Harden

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