BISMARCK, N.D. (KFGO) – About 600 people in North Dakota with car insurance through AAA will have to find another company.
The company is leaving the state while it re-evaluates its business strategy.
Insurance Commissioner Jon Godfread says policyholders will have coverage until their premiums come up for renewal.
“We encourage everybody to shop for their insurance on an annual basis,” Godfread says. “It’s always good to talk with your agent to make sure you’re getting the best coverage at the best, most affordable rate you can find. For these 587 policyholders, they’ve been notified, or have likely been notified. They’re not being canceled. They’re just being non-renewed. So, it’s an opportunity to meet with an agent and find the right policy for you and your family.”
Godfread says the decision does not affect other services offered by AAA.
“This is auto insurance only,” Godfread says. “That’s an important clarification. AAA provides a number of services across the country. They also offer life insurance and roadside assistance, those types of things. This doesn’t affect that. This is just their auto insurance line.”
The North Dakota Insurance Department conducts an annual cost comparison survey of auto insurance companies in the state which looks at various factors and rates drivers pay for coverage. In the most recent survey, more than 20 companies participated.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.