How Much Is Car Insurance in Minnesota? Rates by Coverage Level, Age, Driving History and Location

The average cost of car insurance in Minnesota is $1,199 per year, which is cheaper than the annual national average cost of $1,424. This rate makes Minnesota the 28th cheapest state in the country. These averages are based on many companies and various coverage levels, ages, driving histories, credit scores and locations.

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Last Updated: 5/16/2022
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The annual average cost of car insurance in Minnesota is $1,199. This is for a 40-year-old driver with a comprehensive coverage plan and a clean driving record. If the same driver opts to buy the minimum car insurance coverage, it could cost an average of $737 per year.

However, prices can significantly differ depending on your driver profile. If you add a 16-year-old driver to a full coverage policy, you will pay an annual average of $3,658.

MoneryGeek has explained all the factors that significantly affect car insurance rates in Minnesota to help you understand how they determine rates.

Average Cost of Car Insurance in Minnesota: Summary

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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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

Minimum vs. Full Coverage Car Insurance Costs 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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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

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  • Age
    Annual Premium
  • $3,658
  • $3,471
  • $3,285
  • $3,483
  • $3,025
  • $2,461
  • $2,298
  • $2,004
  • $1,884
  • $1,669
  • $1,522
  • 40
    $1,199
  • $1,357

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 Violation
    Annual 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 Score
    Annual 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.

Frequently Asked Questions About Minnesota Car Insurance Rates

The following are answers to questions asked by people interested in car insurance rates in Minnesota.

Methodology

Car insurance quotes were collected in collaboration with Quadrant Information Services across Minnesota. Policies were for a 40-year-old driver and full coverage with a safe driving record unless altered by the factors described above, including coverage levels, age, driving violations and credit score. The limits of the full coverage policy are described on our methodology page.

  • Highway traffic density was calculated with 2019 data from the Federal Highway Administration.
  • Data on uninsured motorists was drawn from 2019 data from the Insurance Research Council.
  • Urban share of population was calculated using the latest data from the U.S. Census Bureau.
  • Data on motor vehicle theft rate was drawn from the FBI Crime in the United States Report for 2019.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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