The Best Car Insurance in Minnesota for 2022
The best car insurance companies are those that balance customer satisfaction, financial stability and affordability. Based on these factors, Auto-Owners Insurance Co is the best insurance company in Minnesota as it has the highest score for customer satisfaction and claims settlement, while it’s the fifth most affordable company in the state.
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While MoneyGeek’s research shows that Auto-Owners Insurance Co is the best car insurance company in Minnesota, the right option for you is the one that completely fits your needs. We have broken down insurance providers in the state by customer service, cost and many other important factors.
We have also analyzed the cheapest car insurance companies in Minnesota for people who aren’t concerned with the quality of service and are looking for the most affordable insurance policy.
The Best Car Insurance in Minnesota
Best Car Insurance Companies in Minnesota: Overall
In Minnesota, the best overall car insurance provider is Auto-Owners Insurance Co.
To determine the best car insurance companies in Minnesota, MoneyGeek used several factors such as average rates, claims ratings and customer satisfaction.
The top insurance companies in Minnesota overall are:
- Auto-Owners Insurance Co: MoneyGeek score of 4 out of 5
- State Farm: MoneyGeek score of 4 out of 5
USAA received a MoneyGeek score of 5 out of 5, making it the best car insurance company in Minnesota. However, it was excluded from this analysis since its policies are only available to former and current military members and their families.
The Top 5 Car Insurance Companies in Minnesota
With an average yearly cost of $1,093, Auto-Owners Insurance Co has the highest customer satisfaction and claims rating and is ranked fifth for affordability. It offers diminished value coverage to its customers.
The company offers diminished value coverage to its customers. Since a car loses its value after an accident, this coverage ensures that you are compensated for any loss in your car’s total worth. It is rarely offered by insurance companies and is an add-on feature, which means it’s not automatically included in your policy.Read MoneyGeek's Auto-Owners Insurance Co auto Insurance Review
A policy from State Farm costs an average of $962 per year. This company is tied third for customer satisfaction, tied second for claims and has the second highest rating for affordability. It offers rideshare insurance.
With State Farm’s rideshare insurance, you get medical coverage, emergency roadside assistance and rental car reimbursement even when you’re working for a ridesharing company. This feature extends all coverages (except liability insurance) from your personal auto policy while you’re matching with or transporting a rider. This is an add-on feature and is not automatically included in your policy.Read MoneyGeek's State Farm auto Insurance Review
The average annual cost of an auto insurance policy from GEICO is $1,108. It is tied second for customer satisfaction and claims and is ranked sixth for affordability. The company offers mechanical breakdown insurance to its customers.
GEICO’s mechanical breakdown insurance (MBI) offers better coverage at a lower price than a typical dealer extended warranty and also includes all systems and parts. It’s available for cars that are less than fifteen months old and have less than 15,000 miles on them.Read MoneyGeek's GEICO auto Insurance Review
Costing on average $997 per year, AAA is tied third for user satisfaction, tied second for claims and has the third-highest score for affordability. It offers identity theft monitoring to its customers.
AAA offers identity theft monitoring service to its customers and this feature is automatically included in the policy. With this service, your personal information in public records, websites and other places is monitored by the provider and any unusual activity is instantly pointed out. This helps you in taking measures to protect yourself from identity theft.Read MoneyGeek's AAA auto Insurance Review
With an average annual cost of $940, Farmers is ranked fourth for customer satisfaction, tied second for claims and has the highest affordability score. It offers custom parts coverage.
Farmers offers custom parts coverage to its customers, which covers the repair or replacement cost of any aftermarket equipment in your car like an entertainment system or custom wheels. This coverage can be added in your policy if you have comprehensive and collision coverage.Read MoneyGeek's Farmers auto Insurance Review
MoneyGeek determined the best full coverage car insurance in Minnesota by collecting full coverage policy quotes for a sample driver across different locations in the state. These averages might differ for you depending on your personal profile. We also collected claims ratings and user satisfaction data from J.D. Power and the NAIC. For more details, you can read our methodology.
MoneyGeek's Minnesota Car Insurance Resources:
Compare the Best Insurance Options in Minnesota
MoneyGeek’s research shows that the best car insurance policy has a balance between cost, customer service and financial stability. While choosing an insurance policy, you should look, which combination suits you best and whether the insurer has a policy that fits your needs. To compare different insurance policies, you can read our in-depth reviews.
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Best Car Insurance in Minnesota for Customer Service
In Minnesota, the best car insurance company for customer service is Auto-Owners Insurance Co.
The two top-rated companies for customer service in Minnesota are:
- Auto-Owners Insurance Co: MoneyGeek score of 5 out of 5
- GEICO: MoneyGeek score of 4 out of 5
MoneyGeek scored Minnesota car insurance providers based on claims ratings and user satisfaction without considering the cost of its policies.
The Top 2 Car Insurance Companies in Minnesota for Service Quality
Auto-Owners Insurance Co has the highest customer satisfaction score of 5 out of 5 and is tied first for claims ratings with a score of 4.5 out of 5. However, with this company, you’ll be paying a higher cost for a better service.
The company offers a package to its customers which includes multiple coverages. It’s called the Personal Automobile Plus package and consists of more than ten additional coverages, which protect you from incurred expenses like identity theft, relying locks, cell phone replacement and more. This is an add-on feature and can be included in your policy; however, you would have to pay more for it.Read MoneyGeek's Auto-Owners Insurance Co auto Insurance Review
GEICO has a customer satisfaction score of 4.5 out of 5 and a claims rating score of 4 out of 5.
GEICO offers accident forgiveness coverage to its customers. With this coverage, your insurance premium does not go up for your first at-fault accident. You can add this coverage to your policy by purchasing it; however, you can also earn it if you are 21 years old and have not been in an accident for five years or more.Read MoneyGeek's GEICO auto Insurance Review
Best Car Insurance in Minnesota for Drivers on a Budget
Auto-Owners Insurance Co is also the best company in Minnesota for drivers on a budget.
The two best auto insurance companies for drivers wanting the cheapest possible policy that meets the minimum Minnesota requirements are:
- Auto-Owners Insurance Co: MoneyGeek score of 4.4 out of 5
- AAA: MoneyGeek score of 4.1 out of 5
Each insurer’s score is based on their ability to balance affordability for a minimum coverage policy with quality customer service.
MoneyGeek’s Pick: Auto-Owners Insurance Co
Affordable minimum coverage policy at around $640 per year
Offers bundling discount and multiple cars discount
Offers discount on paperless billing
Claims rating of 4.5 out of 5
User satisfaction rating of 5 out of 5
Does not offer defensive driving discount
With Auto-Owners Insurance Co, you get a discount if you have a history of safe driving and you insure two or more private vehicles on your personal auto insurance policy. You can also save on insurance premiums by having other qualifying policies with the company.
The company also offers good discounts on paying your insurance premium online and making a full payment.
Best Car Insurance in Minnesota for Poor Driving Records
In Minnesota, Auto-Owners Insurance Co is the best insurer for drivers with poor driving records.
For this category, the top insurers in Minnesota are:
- Auto-Owners Insurance Co: MoneyGeek score of 4.5 out of 5
- State Farm: MoneyGeek score of 4.2 out of 5
This assessment is based on the quality of customer service and the cost of policies for people with an at-fault accident on their driving history.
MoneyGeek’s Pick: Auto-Owners Insurance Co
An affordable policy at roughly $1,439 per year
Offers coverages like roadside assistance, rental car or travel expenses reimbursement, new car replacement and gap insurance
User satisfaction rating of 5 out of 5
Claims rating of 4.5 out of 5
Does not offer accident forgiveness, deductible modification and better car replacement
Auto-Owners Insurance Co has the best insurance policy for people with a bad driving record at around $1,439 per year, with a claims rating of 4.5 out of 5 and a user satisfaction rating of 5 out of 5.
The company offers the following coverages:
- Roadside assistance: In case your car gets stranded on the road, this coverage covers the cost of towing, flat tires replacement or any other assistance expenses.
- Rental car/transportation cost reimbursement: This coverage pays for rental car and transportation costs while your car is being repaired after an accident.
- Gap insurance: With this coverage, you can cover the gap between your car’s depreciated worth and your auto loan if your car gets damaged in an accident.
- New car replacement: This coverage offers you a brand new car of the same make and model if your car is totaled.
Best Car Insurance in Minnesota for a Military Background
For veterans and people with a military background, USAA is the best insurance company in Minnesota. It has a MoneyGeek score of 5 out of 5 and charges an average of $421 for a minimum coverage policy, while its policy for people with a bad driving record costs about $1,116.
MoneyGeek’s Pick: USAA
An affordable policy for people with a poor driving history at an average of $1,116 per year
MoneyGeek claims and user satisfaction ratings of 5 out of 5
Offers rideshare insurance and new vehicle discount
Only military families are eligible for the policy
USAA has the most affordable policies and the best customer service ratings in the country with a positive reputation among its customers.
The company offers the following coverages and discounts:
- Rideshare insurance: The company provides insurance coverage to ridesharing drivers and fills the gap as drivers don’t have coverage while waiting for the rider to arrive.
- Accident forgiveness: If you remain accident-free for five years, you’ll not be assessed for an auto policy surcharge in case of a first at-fault accident.
- Vehicle storage discount: You’ll get a discount on insuring a stored vehicle.
- Loyalty discount: You can save on insurance premiums by sticking with the company for a designated period of time.
Best Car Insurance in Minnesota for Young Drivers and Students
If you are a young driver or student in Minnesota, MoneyGeek found that State Farm is the best insurer for you.
The top insurance companies in Minnesota for young drivers and students are:
- State Farm: MoneyGeek score of 4.3 out of 5
- Allstate: MoneyGeek score of 3.7 out of 5
MoneyGeek’s Pick: State Farm
Adding a young driver to a policy costs an average of $2,076 per year
Offers good student, drivers education and distant student discount
MoneyGeek claims and user satisfaction rating of 4 out of 5
Does not offer a discount on paperless billing
A policy for young drivers is usually expensive. However, State Farm offers policies to young drivers at an affordable cost with good customer service. Customer service of an insurance company matters a lot as you would need to contact the company to file a claim.
With State Farm, you can get a discount if you have a good academic history. You’ll also get a discount if you are under 21 years of age and take an approved driver’s education course or if you are under the age of 25 and live away from home.
Best Car Insurance in Minnesota for Those With New Cars
With a MoneyGeek score of 3.9 out of 5, Farmers is the top company that offers car replacement or better car replacement coverage.
With new car replacement coverage, if you get into an accident and your car is totaled, the insurer will shoulder the cost of paying for a brand new car of the same make and model and not just the depreciated value of your car. The coverage is optional. Being an add-on feature, you’ll have to pay more for it.
MoneyGeek’s Pick: Farmers
Affordable policy at roughly $940 per year
Offers new car replacement coverage
Claims rating of 4 out of 5
Does not offer better car replacement
User satisfaction rating of 3.5 out of 5
The new car replacement feature is immensely beneficial for new drivers. As a new driver, if you’re unlucky enough to get into an accident within the first few years, your car will lose its value. With this coverage, you’ll be able to get a new car of the same make and model.
If your car is totaled within the first two model years and has less than 24,000 miles on it, you can get a new car of the same make and model.
Best Car Insurance in Minnesota for Low-Mileage Drivers
Nationwide SmartMiles is the best option for low-mileage drivers in Minnesota. Insurance companies across the country are now expanding the use of their pay-per-mile coverage offerings. With this program, drivers pay according to the number of miles they drive.
MoneyGeek’s Pick: Nationwide
It costs less for drivers who usually cover smaller distances
Not suitable for people who drive regularly
Nationwide SmartMiles program includes a base rate and a variable rate, depending on how much you drive. For road trips, it only counts the first 250 miles. You can also get up to a 10% discount for safe driving.
How to Find the Best Car Insurance in Minnesota in For You
While looking for the best car insurance company in Minnesota, you should search for a company that has a balance between cost, customer service and financial stability. MoneyGeek has collected this information for you, but you can also go through the process yourself to choose a company that fits your needs.
Research Customer Service Reputations in Minnesota
To choose the best insurance company in the state, you should look up J.D. Power satisfaction scores and NAIC complaint ratios in your state for insurers you want to research. The website of the insurance department of Minnesota is also a good resource for this information.
Compare Quotes for Yourself
MoneyGeek collected insurance quotes for a sample driver across many different locations in Minnesota, but not everywhere in the state. It’s always a good idea to get at least three quotes from different companies and then compare them to determine the cost of car insurance in your area.
Make Sure the Company Has Coverages You Want in Minnesota
Insurance providers often advertise many features and discounts. However, these discounts are not always available everywhere in the state. You should confirm with the company if they are offering the policy that fits your needs.
Double-Check Financial Stability Ratings
You should check the financial stability ratings of the insurance companies before proceeding to buy a policy. Large companies are usually financially stable; however, regional companies may have lower ratings. Companies with lower ratings won’t be able to process your claims on time.
FAQs About the Best Car Insurance in Minnesota
The following frequently asked questions about the best insurance companies in Minnesota will give you a good idea of how much a car insurance policy that fits your requirements would cost for you.
Expert Advice on Finding the Best Car Insurance in Minnesota
- What is the best way to figure out which insurer is best for me in Minnesota?
- What are the best coverages to add to your car insurance policy in Minnesota?
Paraplanner at Pine Grove Financial Group
To find the best car insurance companies in Minnesota, MoneyGeek calculated scores based on customer satisfaction, claims satisfaction and financial strength by collecting data from industry leaders.
MoneyGeek evaluated 1,344 quotes from 12 companies over seven Minnesota ZIP codes.
To derive our composite MoneyGeek score, we applied specific weightings for each data point:
- General customer and claims satisfaction (60%): MoneyGeek scored Minnesota car insurers on a scale of one to five using customer satisfaction and claims satisfaction surveys from J.D. Power, with each factor weighing 30%.
- Affordability (30%): MoneyGeek compared providers in Minnesota and gave each company a five-point score based on the affordability of its policies.
- Financial stability (10%): MoneyGeek used financial strength ratings from AM Best to evaluate an insurer's ability to pay claims even when facing adverse economic conditions.
Weightings were also adjusted depending on the category. For instance:
- Affordability was weighted at 0% for the best customer service category.
- We used a minimum coverage policy rather than a full coverage policy for the best on a budget category.
- Affordability scores were changed to reflect rates based on age or driving history.
- We included qualitative judgments when insurers offered coverages that their competitors did not.
For reference, a full coverage policy meets the following limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability
- Comprehensive and collision coverage with a $1,000 deductible
We used a sample driver profile of a 40-year-old male driving a Toyota Camry with a clean driving record when collecting quotes in Minnesota. MoneyGeek’s car insurance methodology describes how we calculate average premiums, obtain quotes and more.
About the Author
- Insurance Information Institute. "What determines the price of an auto insurance policy?." Accessed September 25, 2021.