The Best Car Insurance in Minnesota for 2023

MoneyGeek’s scoring system weighed customer satisfaction, financial stability and affordability to determine that Auto-Owners Insurance is the best car insurance company in Minnesota. It has perfect scores for satisfaction and claims while being the fifth-cheapest company in the state.

However, the best auto insurance provider for you depends on your specific needs. For instance, MoneyGeek found that State Farm is ideal for young drivers whereas Nationwide is a good option for low-mileage drivers.

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Advertising & Editorial DisclosureLast Updated: 11/2/2022
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2023

The Best Car Insurance in Minnesota

MoneyGeek also analyzed the car insurance companies in Minnesota for people who are less concerned with quality of service and are looking for the most affordable insurance policy.

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Methodology

Why Trust MoneyGeek? Our scoring system for car insurance in Minnesota incorporates thousands of quotes analyzed by our data scientists, as well as customer service and financial strength ratings from industry-leading market research firms. Click to learn more about how our scores are calculated out of 100.

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Quotes Analyzed

 
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Companies Compared

 
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ZIP Codes

Best Full Coverage Car Insurance Companies in Minnesota: Overall

In Minnesota, the best overall car insurance provider is Auto-Owners Insurance. 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 are:

  • Auto-Owners Insurance: MoneyGeek score of 86 out of 100 ($1,093 per year)
  • State Farm: MoneyGeek score of 80 out of 100 ($962 per year)

MoneyGeek also found the cheapest full coverage car insurance in Minnesota for individuals who want to prioritize savings.

THE TOP CAR INSURANCE COMPANIES IN MINNESOTA

1
Auto-Owners InsuranceBest Overall
Score:NaN

Affordability

Claims

User Satisfaction

Financial Stability

Geek Quick Take
Geek Quick Take

Auto-Owners Insurance has the highest customer satisfaction and claims rating and is ranked fifth for affordability. It offers diminished value coverage to its customers.

Average Annual Cost: $1,093

More About Auto-Owners Insurance

The company offers rare diminished value coverage to its policyholders. Since a car loses its value after an accident, this coverage ensures compensation for any loss in your car's total worth. Diminished value is an add-on feature, meaning it's not automatically included in your policy.

Auto-Owners Insurance also provides gap insurance and new car replacement coverages. Let's say you get into a car accident and are liable for damages to your car. Gap insurance covers the difference between a vehicle's value and the amount still owed on your lease or loan. Meanwhile, new car replacement allows policyholders to purchase a brand-new car with the same make and model in case of a covered accident. Because your car's value depreciates over time, these extra coverages may save you money in the long run.

2
State Farm
Score:80

4/5

Affordability

4/5

Claims

4/5

User Satisfaction

4/5

Financial Stability

Geek Quick Take
Geek Quick Take

State Farm tied third for customer satisfaction, second for claims and has the second-highest rating for affordability. It offers rideshare insurance.

Average Annual Cost: $962

More About State Farm

With State Farm’s rideshare insurance, you can get medical coverage, emergency roadside assistance and rental car reimbursement even when 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 add-on feature is not automatically included in your policy, however.

One downside to State Farm is that it offers fewer and more common optional coverages compared to its competitors. Regardless, policyholders can decide whether they need roadside assistance or rental car and/or travel reimbursement coverages. If you’re liable for an accident while driving a rental car, you are protected against rental car, travel, meals and transportation expenses up to your chosen limits.

3
GEICO
Score:80

3.1/5

Affordability

4/5

Claims

4.5/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

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.

More About GEICO

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.

4
AAA
Score:79

3.8/5

Affordability

4/5

Claims

4/5

User Satisfaction

4/5

Financial Stability

Geek Quick Take
Geek Quick Take

Costing on average $997 per year, AAA tied third for user satisfaction, second for claims and has the third-highest score for affordability. It offers identity theft monitoring to its customers.

More About AAA

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.

5
Farmers
Score:78

4.1/5

Affordability

4/5

Claims

3.5/5

User Satisfaction

4/5

Financial Stability

Geek Quick Take
Geek Quick Take

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.

More About Farmers

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.

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HOW WE DETERMINED THE BEST INSURANCE IN MINNESOTA

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:

Best Car Insurance in Minnesota for Customer Service

In Minnesota, the best car insurance company for customer service is Auto-Owners Insurance.

The two top-rated companies for customer service in Minnesota are:

  • Auto-Owners Insurance: MoneyGeek score of 96 out of 100
  • GEICO: MoneyGeek score of 87 out of 100

MoneyGeek scored Minnesota's car insurance providers based on claims ratings and user satisfaction without considering the cost of its policies.

THE TOP TWO CAR INSURANCE COMPANIES IN MINNESOTA FOR SERVICE QUALITY

1
Auto-Owners InsuranceBest for Customer Service
Score:NaN

Claims

User Satisfaction

Financial Stability

Geek Quick Take
Geek Quick Take

Auto-Owners Insurance 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.

More About Auto-Owners Insurance

This company offers a multiple-coverage bundle to its customers called the Personal Automobile Plus Package. It consists of more than ten additional coverages, which protect you from incurred expenses like identity theft, rekeying locks, cell phone replacement and more. Since this package is an add-on feature, you must pay more.

Drivers can also opt for roadside assistance or rental car/travel reimbursement with Auto-Owners Insurance. Roadside assistance offers essential services when you have a dead battery, mechanical malfunction, or get a flat tire.

Because filing claims can be overwhelming, MoneyGeek encourages drivers to consider insurance companies that offer stellar customer service. In a crisis, it pays to have an insurer that works efficiently and swiftly.

2
GEICO
Score:87

4/5

Claims

4.5/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

GEICO has a customer satisfaction score of 4.5 out of 5 and a claims rating score of 4 out of 5.

More About GEICO

GEICO offers accident forgiveness coverage to its customers. With this coverage, your insurance premium will not go up after your first at-fault accident. You can add this coverage to your policy by purchasing it, but it's also possible to earn it if you are 21 years old and have not been in an accident for five years or more. Please note that this add-on supplements your existing policy; it isn't included in standard coverage.

With GEICO, you can also get rental car/travel reimbursement coverage. If your car isn't driveable for more than 24 hours after a covered accident, you can receive money to pay for certain expenses, including lodging, transportation and meals. In case of a vehicular emergency, GEICO provides coverage for roadside assistance such as towing, jump starts, lockout services and more.

Best Car Insurance in Minnesota for Minimum Coverage

Auto-Owners Insurance 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: MoneyGeek score of 87 out of 100 ($640 per year)
  • AAA: MoneyGeek score of 82 out of 100 ($509 per year)

Each insurer’s score is based on their ability to balance affordability with quality customer service when meeting Minnesota’s minimum coverage requirements.

MoneyGeek also investigated the cheapest minimum coverage car insurance companies in Minnesota for individuals who prioritize savings.

MoneyGeek’s Pick: Auto-Owners Insurance

Auto-Owners Insurance

pros

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Affordable minimum coverage policy at around $640 per year

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Offers bundling discount and multiple cars discount

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Offers discount on paperless billing

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Claims rating of 4.5 out of 5

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User satisfaction rating of 5 out of 5

cons

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Does not offer defensive driving discount

COMPANY HIGHLIGHTS

Auto-Owners Insurance gives its policyholders numerous opportunities to save money. You can take advantage of its bundling, multiple cars and safe driver discounts by having other qualifying policies with the company, insuring two or more private vehicles and maintaining a safe driving history.

Auto-Owners Insurance even offers rare discounts for responsible payment and anti-lock brakes. With the former, you get a discount when you pay your premiums on time for 36 consecutive months. With the latter, you can save money by having vehicle safety features like anti-lock brake systems (ABS), airbags or anti-theft devices.

Read MoneyGeek's Auto-Owners Insurance Auto Insurance Review

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 Individuals in their late teens, early 20s or in college are:

  • State Farm: MoneyGeek score of 86 out of 100
  • Allstate: MoneyGeek score of 74 out of 100

MoneyGeek rated insurance providers in Minnesota for first-time drivers, students and young drivers based on the affordability of their policies and the quality of their customer service. Young drivers and students are in luck since MoneyGeek also analyzed the cheapest car insurance in Minnesota for young drivers and students.

MoneyGeek’s Pick: State Farm

State Farm

pros

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Adding a young driver to a policy costs an average of $2,076 per year

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Offers good student, drivers education and distant student discount

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MoneyGeek claims and user satisfaction rating of 4 out of 5

cons

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Does not offer a discount on paperless billing

COMPANY HIGHLIGHTS

Insuring young drivers is usually expensive. However, State Farm offers policies to young drivers at an affordable cost with good customer service. The customer service of an insurance company matters a lot as you would need to contact the company to file a claim. Moreover, filing claims can be overwhelming, so it’s best to choose an insurer that’ll give you peace of mind.

With State Farm’s good student discount, you can lower your premium by getting good grades in school. 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 25, live away at school and only drive when home.

Read MoneyGeek's State Farm Auto Insurance Review

Best Car Insurance in Minnesota for Seniors

MoneyGeek rated top-performing providers in Minnesota for seniors based on their affordability and customer service records. Our top two options for seniors in Minnesota are:

  • Auto-Owners Insurance: MoneyGeek score of 88 out of 100 ($1,173 per year)
  • State Farm: MoneyGeek score of 86 out of 100 ($883 per year)

MoneyGeek balanced cost and customer service categories to generate the above scores. For those more interested in affordability, we also found the cheapest Minnesota car insurance for seniors.

MoneyGeek’s Pick: Auto-Owners Insurance

Auto-Owners Insurance

pros

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One of the most affordable companies for seniors at $1,173 per year

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Offers add-ons like gap insurance and roadside assistance

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Perfect scores in claims, customer satisfaction and stability ratings

cons

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Doesn’t offer senior driver or defensive driving discounts

COMPANY HIGHLIGHTS

Auto insurance premiums usually increase as you reach age 65 and beyond. However, Auto-Owners Insurance offers a reasonable cost for the excellent quality of its service and record for customer satisfaction. The fact that this insurer garnered a rating of 5 out of 5 in claims and customer satisfaction is a huge plus.

Aside from roadside assistance, Auto-Owners Insurance has rental car/travel reimbursement for its policyholders. If you add this policy and get into a covered accident, the company will ensure your reimbursement for incidental expenses such as food, lodging and transportation. Unfortunately, Auto-Owners Insurance doesn’t feature any senior-specific discounts, such as defensive driving.

Read MoneyGeek's Auto-Owners Insurance Auto Insurance Review

Best Car Insurance in Minnesota for Bad Driving Records

In Minnesota, Auto-Owners Insurance is the best insurer for drivers with bad driving records. For this category, the top insurers in Minnesota are:

  • Auto-Owners Insurance: MoneyGeek score of 89 out of 100 ($1,439 per year)
  • American Family: MoneyGeek score of 84 out of 100 ($1,059 per year)

This assessment is based on the quality of customer service and the cost of policies for people with an at-fault accident in their driving history. If you’re looking for savings, MoneyGeek also analyzed the cheapest car insurance in Minnesota for those with a DUI or bad record.

MoneyGeek’s Pick: Auto-Owners Insurance

Auto-Owners Insurance

pros

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An affordable policy at roughly $1,439 per year

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Offers coverages like roadside assistance, rental car or travel expenses reimbursement, new car replacement and gap insurance

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User satisfaction rating of 5 out of 5

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Claims rating of 4.5 out of 5

cons

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Does not offer accident forgiveness, deductible modification and better car replacement

COMPANY HIGHLIGHTS

Auto-Owners Insurance 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 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.
Read MoneyGeek's Auto-Owners Insurance Auto Insurance Review

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 per year for a minimum coverage policy, whereas its policies for those with bad driving records cost about $1,116.

MoneyGeek’s Pick: USAA

USAA

pros

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An affordable policy for people with a poor driving history at an average of $1,116 per year

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MoneyGeek claims and user satisfaction ratings of 5 out of 5

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Offers rideshare insurance and new vehicle discount

cons

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Only military families are eligible for the policy

COMPANY HIGHLIGHTS

USAA tends to have the most affordable policies with the best customer service ratings in the country — the same is true for its Minnesota offerings.

The company offers the following coverages and discounts:

  • Rideshare Insurance: USAA provides insurance coverage to ridesharing drivers and fills the gap in coverage between riders.
  • Accident Forgiveness: If you remain accident-free for five years, you’ll not be assessed for an auto policy surcharge in case for your 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.
Read MoneyGeek's USAA Auto Insurance Review

Best Car Insurance in Minnesota for Those With New Cars

With a MoneyGeek score of 78 out of 100, Farmers is the top company that offers new car replacement or better car replacement coverage. An average Farmers premium costs $940 per year.

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. Because this coverage is an add-on feature, you’ll have to pay more for it.

MoneyGeek’s Pick: Farmers

Farmers

pros

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Affordable policy at roughly $940 per year

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Offers new car replacement coverage

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Claims rating of 4 out of 5

cons

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Does not offer better car replacement

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User satisfaction rating of 3.5 out of 5

COMPANY HIGHLIGHTS

The new car replacement feature is immensely beneficial for new car drivers. Unfortunately, a new car begins to lose its value as soon as you start driving it. With Farmers' new car replacement coverage, drivers can financially protect themselves in case of accidents. If your car is totaled within the first two model years and has less than 24,000 miles, Farmers will bear the cost of replacing your vehicle with a new one of the same make and model.

Read MoneyGeek's Farmers Auto Insurance Review

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

Nationwide

pros

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It costs less for drivers who usually cover smaller distances

cons

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Not suitable for people who drive regularly

COMPANY HIGHLIGHTS

Even those who rarely drive their vehicles still need car insurance. Luckily, auto insurance is available for drivers in Minnesota who don’t drive frequently. The Nationwide SmartMiles program works on a pay-per-mile system broken down into a base rate and a variable rate. This means that your premium partly depends on how much you drive. Another great feature of the Nationwide SmartMiles program is that it only counts the first 250 miles of the day for road trips. You can also get up to a 10% discount for safe driving to find more savings on your auto insurance policy.

Read MoneyGeek's Nationwide Auto Insurance Review

How to Find the Best Car Insurance in Minnesota 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.

1

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.

2

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.

3

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.

4

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: Finding the Best Auto Insurance in Minnesota

  1. What is the best way to figure out which insurer is best for me in Minnesota?
  2. What are the best coverages to add to your car insurance policy in Minnesota?
Kristin Baker
Kristin Baker

Paraplanner at Pine Grove Financial Group

About the Author


expert-profile

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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