How Much Is Car Insurance in Minnesota? (2023 Averages)
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Your driver profile and the car insurance policy you choose can significantly impact the cost of car insurance premiums. For instance, although the average cost of car insurance in Minnesota is $1,199 per year, drivers purchasing a minimum coverage policy pay only $737 per year. Drivers with violations pay an average cost of $1,559 per year, while those who add a young driver to their policy pay as much as $3,658 per year.
The company you choose will also impact the cost of your car insurance premiums. For example, Farmers' full coverage policy in Minnesota costs $940 per year, while Progressive charges an average of $1,622 for similar coverage.
The Average Cost of Car Insurance in Minnesota
MoneyGeek broke down the average car insurance costs in Minnesota by focusing on factors that could have a high impact on the rates.
The most significant factor affecting your average car insurance costs is age, followed by poor credit scores.
You can click on the link to find out more about average costs for a given driver profile.
Average Costs of Car Insurance in Minnesota
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- DriverAverage Annual PremiumAverage Monthly Premium
- The Average Driver$1,199$100
- Drivers Buying Minimum Coverage$737$61
- Adding a Young Driver$3,658$305
- Drivers With a Violation$1,559$130
- Drivers With Poor Credit$2,778$232
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Why are Car Insurance Rates Reasonable in Minnesota?
Minnesota has average car insurance rates as it has low highway traffic density, a low rate of uninsured motorists and is less prone to natural disasters, according to MoneyGeek’s research. It’s also a no-fault insurance state, meaning that there are low car insurance rates in Minnesota since the insurers compensate their clients regardless of the party at fault.
Average Cost of Car Insurance in Minnesota: Full Coverage vs. Minimum Coverage
A policy meeting state minimum has an average car insurance rate of $737 in Minnesota and full coverage costs roughly $1,199 per year, according to MoneyGeek's methodology. The average difference between the two plans is $462 per year.
The average cost of car insurance in Minnesota greatly varies depending on the type of coverage you choose. You'll pay a higher average cost for the comprehensive insurance among the main types (comprehensive and collision insurance) since it has higher coverage than the collision policy.
Average Cost of Car Insurance in Minnesota by Coverage Level
Minnesota’s state minimum policy is the cheapest car insurance you can buy in the state.
If you purchase a state minimum policy, you also have the option to increase your liability limits to either 50/100/50 or 100/300/100. These numbers summarize the policy’s bodily injury and property damage liability limits. For example, a 50/100/50 policy has the following limits:
- $50,000 in bodily injury liability insurance per person
- $100,000 in bodily injury liability insurance per accident
- $50,000 in property damage liability insurance per accident
If you opt for a full coverage policy, you will get comprehensive and collision insurance which ensures that you’ll be reimbursed if your car is damaged.
Average Cost of Car Insurance in Minnesota By Company
Since insurance companies use varying factors to determine their quotes, the company you choose can significantly impact your average cost of car insurance in Minnesota. State Farm is the most affordable plan for full coverage, while AAA is the cheapest for minimum coverage in Minnesota.
USAA, specifically designed for military families, is another affordable option with the cheapest liability-only policy. However, there are other cheap full coverage car insurance policies.
The most expensive insurance company in Minnesota is Progressive, with an average of $1,622 for full coverage car insurance and $1,081 for minimum coverage.
Average Annual Costs of Car Insurance in Minnesota - By Company
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- CompanyMinimum CoverageFull Coverage
- $421$792
- $561$940
- $605$962
- $509$997
- $733$1,021
How Much Is Car Insurance in Minnesota by Age?
As you age, your car insurance rates in Minnesota change. In general, car insurance is more expensive for young drivers. The average difference in cost between a 16-year-old being added to a parent's policy and a 40-year-old buying a policy is $2,459 per year.
However, young drivers can save more money on policy rates by adding to their parent's car insurance coverage. If you're new to driving in Minnesota, you'll buy your insurance at a similar rate to the teenagers, as first-time drivers are treated the same as teenage drivers.
Average Costs of Full Coverage Car Insurance in Minnesota - By Age
How Does Driving History Affect Car Insurance Costs in Minnesota?
High-risk drivers with numerous speeding violations and road accidents pay higher insurance rates than drivers with clean records. However, if you have a bad record, you can still shop around for Minnesota's cheapest car insurance plans.
MoneyGeek research found that a driver with a speeding ticket can pay roughly $360 more than a safe driver. You're more likely to pay higher car insurance rates in Minnesota if the violation is more severe.
Average Costs of Full Coverage Car Insurance in Minnesota - By Driving History
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- Driving ViolationAnnual Premium
- Safe Driver$1,199
- Speeding Ticket$1,559
- At-Fault Accident$1,767
- DUI$2,395
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Credit Scores and the Cost of Car Insurance in Minnesota
Drivers with excellent credit tend to pay lower car insurance rates in Minnesota per year than those with good credit. MoneyGeek’s data indicates the difference between drivers with excellent credit scores and those with good credit scores is roughly $268 per year.
Those with good credit scores pay about $1,367 less than drivers with poor credit scores.
With a good credit score in Minnesota, you can save on car insurance. While a poor credit score means you’ll have to pay extra each year, you can still find cheap coverage options in Minnesota.
Average Costs of Full Coverage Car Insurance in Minnesota - By Credit Score
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- Credit ScoreAnnual Premium
- Excellent$1,143
- Good$1,411
- Fair$1,674
- Below Fair$2,126
- Poor$2,778
How Much Is Car Insurance in Your City?
Different cities have different car insurance rates. These rates can also vary significantly within states. In Minnesota, Rochester has the cheapest car insurance rates at $920, while Minneapolis is the most expensive city at $1,223 per year.
While other factors determine the average cost of car insurance in Minnesota, you’re more likely to pay higher premiums if you live in densely populated cities, cities with higher accident risks or those prone to natural disasters.
Average Costs of Full Coverage Car Insurance in Minnesota - By City
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- CityAnnual Premium
- $1,223
- $920
- $1,167
Frequently Asked Questions About Minnesota Car Insurance Rates
The following are answers to questions asked by people interested in car insurance rates in Minnesota.
About Mark Fitzpatrick
sources
- CarInsurance.org. "Minnesota Car Insurance Guide." Accessed September 15, 2021.