Minnesota car insurance costs approximately $1,310 per year for full coverage and $535 for minimum coverage, calculated for a 40-year-old driver with good credit and a clean record. Minnesota positions well at 21st for full coverage and 17th for minimum coverage, offering rates 10% and 22% below typical benchmarks respectively.
Average Cost of Car Insurance in Minnesota
Updated: October 16, 2025
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Key Takeaways
Car insurance costs can be between $535 and $5,604 per year on average in Minnesota depending on your chosen coverage, driving profile and location.
Car insurance costs in Minnesota are typical for the U.S., with the state placing 17th for minimum coverage and 21st for full coverage affordability.
To secure the cheapest car insurance in Minnesota, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In Minnesota
| Full Coverage | $109 | $1,310 |
| Minimum Coverage | $45 | $535 |
Adding comprehensive and collision to your policy increases annual costs by $775, roughly $65 per month. Your actual premiums depend on personal factors, driving history and specific coverage limits selected.
Average Minnesota Car Insurance Cost By Category
Older car owners secure the most affordable rates in Minnesota at $92 monthly for full coverage, benefiting from reduced comprehensive and collision claim values. Driver characteristics significantly influence Minnesota car insurance pricing.
Adult drivers enjoy reasonable baseline premiums at $103 monthly for full coverage and $43 for minimum coverage. Young drivers pay more than double at $236 monthly for full coverage, while credit-impaired drivers face the highest costs at $309 monthly, demonstrating credit's substantial impact on Minnesota rates.
| Young Drivers | $98 | $236 |
| Adult Drivers | $43 | $103 |
| Senior Drivers | $61 | $130 |
| Drivers With An Accident | $67 | $159 |
| Drivers With A DUI | $102 | $229 |
| Drivers With A Speeding Ticket | $57 | $135 |
| Drivers With Bad Credit | $119 | $309 |
| Drivers With Low Income | $63 | $161 |
| Drivers With Newer Cars | $54 | $136 |
| Drivers With Old Cars | $38 | $92 |
Minnesota's competitive insurance market keeps base rates reasonable, though credit scores create the most significant premium variations between driver groups.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
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Average Minnesota Car Insurance Cost by Company
Auto-Owners provides competitive rates in Minnesota at $82 monthly for full coverage, while North Star Insurance prices at the premium end with $101 monthly. Minnesota insurance companies maintain reasonable rate spreads, with full coverage premiums varying from $82 to $101 monthly among popular providers.
Minnesota drivers save around $230 yearly by selecting cost-effective coverage options.
| Westfield Insurance | $20 | $92 |
| North Star Insurance | $33 | $101 |
| State Farm | $33 | $94 |
| Auto Owners | $36 | $82 |
| AAA | $38 | $83 |
Average Minnesota Car Insurance Cost By City
Minnesota car insurance costs fluctuate moderately by location throughout the state, with full coverage premiums ranging from $89 monthly in Mankato to $155 in Saint Paul. Location affects Minnesota car insurance rates with moderate variation across cities.
The $66 monthly difference between metropolitan and smaller city rates reflects typical urban versus rural pricing patterns in competitive markets. Compare rates for your city below.
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City:Ada
| Full Coverage | $98 | $1,178 |
| Minimum Coverage | $41 | $492 |
*Rates are based on a 40-year-old driver with good credit and a clean record driving a 2012 Toyota Camry LE. Minimum coverage means basic liability required by state law. Full coverage includes 100/300/100 liability limits plus comprehensive and collision with $1,000 deductibles.
Is Minnesota Car Insurance Expensive?
Minnesota ranks 21st for full coverage and 17th for minimum coverage affordability nationwide. The state falls in the middle range for car insurance costs, though your city can affect what you actually pay.
Why Is Car Insurance More Expensive In Minnesota?
Here's what drives Minnesota's car insurance costs:
Nation's Highest Rate Increases
Minnesota had the highest rate increases in the nation during 2024, with rates jumping 55% year-over-year through June. This dramatic spike was nearly double the national average increase of 28%, pushing Minnesota's average annual full coverage cost to $2,315 and ranking it 32nd among all states.
No-Fault Insurance System
Minnesota operates under a no-fault insurance system, requiring all drivers to carry personal injury protection coverage of $40,000 per person — split between $20,000 for medical expenses and $20,000 for non-medical expenses like lost wages and replacement services. This system means your own insurance covers your medical expenses regardless of who caused the accident, streamlining the claims process but adding to overall premium costs.
Comprehensive Coverage Requirements
Minnesota's harsh winters and frequent severe weather make comprehensive coverage particularly important. The state experiences regular hailstorms, windstorms, and winter weather that can damage cars. Minneapolis alone has had numerous hail reports and severe weather warnings in the past year, highlighting the frequency of weather-related risks.
Devastating Hail Storm Damage
The August 11, 2023 hailstorm that struck central and southern Minnesota caused an estimated $1.5 billion in damage, making it one of NOAA's "Billion-Dollar Weather and Climate Disasters." The storm produced golf ball and walnut-sized hail across the Twin Cities area, extensively damaging cars, rooftops, and windows, directly contributing to the state's insurance rate increases.
Climate Change Impact
Minnesota's rate increases are tied to climate change effects. State officials note that Minnesota experiences more severe wind storms and weather events, challenging the common perception that climate change only affects states like California and Florida. These increasingly severe weather patterns drive up comprehensive coverage claims and costs.
High DUI Penalties
Minnesota imposes severe insurance penalties for DUI convictions. A DUI conviction can increase annual premiums substantially, representing one of the steepest insurance penalties for impaired driving violations among all states.
Insurance Company Financial Struggles
Minnesota's insurance market faces ongoing challenges, with companies losing money for five consecutive years according to the Department of Commerce. This financial strain justifies continued rate increases and suggests the trend of rising premiums will continue as insurers work to restore profitability while adapting to increased claim costs from severe weather events.
How To Lower Car Insurance Costs In Minnesota
Want to cut your car insurance costs? Here's how to lower your rates:
- 1
Decide on coverage needs beforehand
Decide on your coverage needs before shopping so you aren't oversold on coverage you don't need. Consider your budget, driving habits, car value, and risk tolerance.
- 2
Research costs and discounts
Know the average costs for your profile and coverage level to spot good deals. Research car insurance discounts you qualify for and check home and auto insurance bundles for additional savings.
- 3
Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to narrow down which companies to compare. Use industry studies, review forums, and public forums like Reddit for research.
- 4
Compare quotes through multiple means
Compare quotes from multiple companies side by side to find the best deal. Use different methods like online comparison sites and independent agents since pricing varies by method.
Cost of Car Insurance in Minnesota: Bottom Line
Minnesota car insurance costs fall in the middle range compared to other states. Decide on your coverage needs first, research companies thoroughly, and compare quotes from multiple insurers to get the best rates.
Cost of Car Insurance in Minnesota: FAQ
We answer common questions about Minnesota car insurance costs:
How much is Minnesota car insurance per month?
Minnesota car insurance costs $45 monthly for minimum coverage and $109 for full coverage. Rates range from $38 to $309 monthly depending on your driver profile and coverage choice.
What factors affect Minnesota car insurance costs?
Your driving record, age, credit score and location affect your rates. Bad credit raises costs to $309 monthly, while DUIs increase premiums to $229 monthly.
Why is Minnesota car insurance so expensive?
Minnesota operates a no-fault system requiring $40,000 personal injury protection coverage and faces seasonal weather risks including severe storms and hail damage. The state's no-fault system requires insurers to pay their own policyholders' medical costs regardless of fault, leading to higher premiums. Credit scores also impact rates, with poor credit increasing monthly costs to $309 for full coverage.
How expensive is Minnesota car insurance?
Minnesota car insurance costs fall into the moderate range nationally, ranking 17th for minimum coverage and 21st for full coverage affordability among the 50 states and Washington, D.C.
How We Determined Minnesota Car Insurance Costs
We used the following profile and modifications of this profile to determine Minnesota auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Department of Natural Resources of Minnesota . "August 11, 2023 Hail and Winds ." Accessed October 19, 2025.
- Minnesota Department of Commerce . "Minnesota Auto Insurance Basics ." Accessed October 19, 2025.
- Axios Twin Cities . "Minnesota Home, Car Insurance Rates Rising Fast ." Accessed October 19, 2025.