How Much Is Car Insurance in Minnesota? (2023)

In Minnesota, factors such as your age, driving history, location, credit score, coverage level and insurer can impact your car insurance rates. State Farm provides the cheapest full coverage policies at approximately $797 per year, while Country Financial has the priciest policy at around $1,457 per year. Additionally, middle-aged drivers pay an average of $1,056 per year, and motorists in their 20s pay roughly $1,303.

The average cost of car insurance in Minnesota is $1,056 per year. However, the rates may vary depending on factors such as coverage amount and driving record. The following shows the average cost of auto insurance in Minnesota for various driver types:

• Clean record: $1,056 per year
• Speeding ticket: $1,306 per year
• Accident: $1,463 per year
• DUI: $1,936 per year

The rates mentioned above apply to full coverage insurance. Keep in mind that minimum coverage insurance is cheaper but comes with less coverage.

Minnesota's car insurance rates average $1,056 per year, which is close to the national average of $1,054 per year. The state's moderate rates may be affected by factors like moderate traffic density, low urban population density, affordable insurers and few vehicle thefts. If you find Minnesota's car insurance rates costly, it may be because of your age, driving history or other factors specific to you.

The cost of car insurance in Minnesota can differ significantly among providers. As such, the state's average cost may not accurately reflect your potential insurance costs.

For example, Westfield provides the cheapest minimum coverage auto insurance policy in Minnesota, costing $317 per year ($863 per year for full coverage). On the other hand, Country Financial has the highest premiums, with prices averaging approximately $648 per year for minimum coverage ($1,457 per year for full coverage). Although liability-only policies are less expensive, you can still find affordable full coverage insurance by comparing rates from various providers.

On average, car insurance rates in Minnesota range from $474 per year for a minimum coverage policy to $1,231 per year for a full coverage policy with increased limits. Costs typically go up as you increase your liability limits.

Adding comprehensive and collision coverage (also known as full coverage) to your policy may increase your premiums by several hundred dollars per year. However, choosing a higher deductible can lower your premiums.

A minimum coverage policy in Minnesota is the state’s cheapest car insurance option. However, this type of policy provides only the bare minimum coverage and lacks comprehensive and collision coverage.

Notably, Minnesota's mandatory personal injury protection and uninsured motorist insurance requirements contribute to slightly higher car insurance rates compared to similar states without these coverages.

If you want higher liability limits, insurance companies may offer policies with limits of 50/100/50 or 100/300/100. The former coverage would include:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability per accident

Most insurance companies set a maximum liability limit of 300/500/300. Liability insurance only covers third-party damages or medical expenses. If you want coverage for damages to yourself or your vehicle, you must purchase comprehensive and collision insurance, also known as a full coverage policy.

The cost of premiums can be notably influenced by your age, especially if you're seeking auto insurance for a new driver. Here are the average costs of full coverage policies in Minnesota for different age groups:

• 22–29: $1,303 per year
• 30–59: $1,056 per year
• 60+: $967 per year

If you're in your 20s, you may face higher insurance rates because insurance companies consider younger drivers to be riskier. Rates typically stabilize for drivers between the ages of 30 and 59 but may decrease for those over 60.

Car insurance for teenagers in Minnesota is typically more expensive than for other age groups. A 16-year-old male on a family plan pays an average of $2,553 per year, while individual policies are even more costly at $4,785 per year.

However, as drivers gain more experience, insurance rates generally decrease. For example, a 19-year-old on a family plan pays an average of $1,930 per year, while a 22-year-old pays $1,502 per year.

Insurance rates can also vary based on gender in Minnesota and other states. On average, adding a 16-year-old girl to a family policy costs around $2,160 per year, which is $393 less than for a teen boy. To find affordable car insurance for teenagers in Minnesota, you can compare rates from different providers.

In Minnesota, insuring a new car costs $1,283 per year on average, which is 27% more than the cost of insuring an older vehicle ($1,008 per year). The higher cost of insuring new cars is due to their higher actual cash value (ACV), pricier repairs and increased likelihood of theft.

When you file a claim, your payout will be based on your car's ACV. As older cars have lower ACVs and require smaller payouts, they are less expensive to insure compared to newer cars.

If you own a new car, it might be worth considering full coverage insurance. Unlike a liability-only policy, full coverage insurance covers damages to your own vehicle, which can be substantial for newer cars with higher ACVs.

To get the best car insurance rates in Minnesota, it's important to maintain a clean driving record. Drivers with traffic violations usually pay higher premiums compared to those with no offenses.

Here are the average annual costs of car insurance in Minnesota based on driving record:

• Clean record: $1,056 per year
• Speeding ticket: $1,306 per year
• Accident: $1,463 per year
• DUI: $1,936 per year

The severity of the driving offense often directly affects the increase in your insurance premium. A DUI, for instance, will usually lead to a larger increase than a speeding ticket.

If you have a poor driving record, comparing rates from multiple providers is an effective way to find affordable car insurance in Minnesota.

Your credit score can significantly impact the cost of your car insurance in Minnesota. If you have poor credit, you could pay an average of $2,357 per year, which is more than double what drivers with excellent credit pay ($828 per year).

The average costs of car insurance in Minnesota based on credit score are as follows:

• Excellent: $828 per year
• Good: $1,016 per year
• Fair: $1,269 per year
• Below fair: $1,714 per year
• Poor: $2,357 per year

Each insurer has its own way of penalizing lower credit scores. That’s why it's important to shop around and compare rates from different insurers if you have poor credit and want to find affordable car insurance in Minnesota.

Where you live in Minnesota is an important factor in determining your car insurance rates. For instance, if you live in Rochester, you can expect to pay around $941 per year for full coverage insurance. On the other hand, a similar policy in St. Paul costs roughly $1,287 per year. Cities with higher traffic and denser populations, like St. Paul, typically have higher car insurance rates than less populated cities like Rochester.

MoneyGeek answered some frequently asked questions about car insurance costs in Minnesota to help you understand how rates vary based on factors related to you and your area.