In Minneapolis, State Farm offers the cheapest full coverage auto insurance on average and is cheapest for drivers with tickets. AAA offers the cheapest state minimum coverage. Rates can vary by coverage level and driver profile. Military families might be able to get lower rates from USAA. State Farm received MoneyGeek’s best overall score for companies that balance affordability and service.
The Cheapest and Best Car Insurance in Minneapolis




The Cheapest Car Insurance Companies in Minneapolis
On average, the cheapest car insurance for a full coverage policy in Minneapolis is from:
- State Farm: $943 per year
- Farmers: $977 per year
Having a military background makes you eligible for an even cheaper rate from USAA at roughly $801 annually.
Drivers in Minneapolis eyeing coverage from Progressive should know that, on average, the company has the most expensive rates with an annual premium of $1,632.
The policy averages above cover liability insurance plus comprehensive and collision insurance that covers damages to your own car. Premiums can change based on the driver’s profile and liability coverage.
Cheapest Car Insurance in Minneapolis
- Company100/300/100per year
- 1.$801
- 2.$943
- 3.$977
- 4.$977
- 5.$1,058
Aside from other factors detailed in the methodology, MoneyGeek based our calculations on a sample 40-year old male driver to find the average rates for full coverage in Minneapolis.
A full coverage policy is more expensive than a minimum policy because it has more coverage aside from liability insurance. This includes:
- Collision insurance: covers damages resulting from a car crash with a stationary object or another vehicle
- Comprehensive insurance: covers any damages that don’t fall under collision insurance, such as damages from theft, vandalism and natural disasters
If you have an older car, a full coverage policy may not be the best option, especially if your premiums are worth more than your car. You can save a lot more by getting a state minimum policy.
Compare Car Insurance Rates in Minneapolis
Ensure you're getting the best rate for your car insurance. Compare quotes from the top insurance companies.

Cheapest Car Insurance in Minneapolis for Minimum Coverage
Buying the state minimum in Minneapolis is the cheapest option if you want to save on your premiums.
On average, the most affordable minimum coverage in Minneapolis are from:
- AAA: $486 per year
- Farmers: $576 per year
Military members and their families can find the cheapest rates from USAA, which offers the cheapest minimum coverage premiums in Minneapolis at roughly $427 per year.
Progressive is the most expensive option in Minneapolis, with an average annual premium of $1,089.
With a state minimum policy, you’ll risk not being fully covered and having to pay costs that are beyond your limits out of your own pocket. Use the table to see how much liability coverage costs.
Cheapest Minimum Liability Car Insurance in Minneapolis
- CompanyState Minimumper year
- 1.$427
- 2.$486
- 3.$576
- 4.$586
- 5.$649
State minimum coverage is the cheapest you can buy in Minneapolis. With the lowest cost, expect to have the least coverage as well. Although you will pay a cheaper premium, this comes with a risk of paying out of pocket in case of an accident where damages exceed the limit. For example, if your property damage coverage limits only cover up to $50,000 and the actual damage reaches up to $60,000, you will pay $10,000 out of pocket.
Minnesota Minimum Liability Requirements
- ItemDescription
- Bodily Injury and Property Damage$30,000 per person, $60,000 per accident and $10,000 for property damage. A more protective level is 100/300/100.
- Uninsured Motorist$25,000 per person and $50,000 per incident. The minimum coverage may not be enough if you're in a serious accident.
- Personal Injury Protection$40,000 per person.
Cheapest Car Insurance in Minneapolis if You Have Driving Violations
If you have a driving violation in your record, car insurance rates in Minneapolis will be expensive. The companies that offer the cheapest rates for drivers with your profile are:
- Cheapest after a ticket: State Farm, $1,036 per year
- Cheapest after an at-fault accident: American Family, $1,098 per year
- Cheapest after a DUI: State Farm, $1,036 per year
Military families can get the cheapest rates from USAA if they have a ticket.
If you want to lower your rates, you can do so by maintaining a good driving record. However, while you have a bad record, it pays to shop around for companies that offer the lowest rates after an accident.
Cheapest Car Insurance in Minneapolis With a Violation
- CompanySpeeding Ticketper year
- 1.$950
- 2.$1,036
- 3.$1,098
- 4.$1,143
- 5.$1,350
Average Cost of Car Insurance in Minneapolis
Drivers in Minneapolis pay an average of $1,223 every year, which is 2% more expensive than the average car insurance in the state. Yet, that annual rate is 14.1% more affordable than the average rate in the United States, which means you could be paying less than what most drivers in the country do just because you live in Minneapolis.
Personalized Quotes to Get You the Cheapest Car Insurance in Minneapolis
When you are looking for the best car insurance rate in Minneapolis, it is best to shop around and ask for personalized quotes from different companies. Each company has different standards and weighs various circumstances differently to determine their ideal rate for you. These factors include your ZIP code, age, the model and make of the car you drive, your driving history and more. These factors change over time, so it is always best to look at personalized quotes from multiple companies to ensure you're getting the best rate available to you.
Compare Car Insurance Rates in Minneapolis
Ensure you're getting the best rate for your car insurance. Compare quotes from the top insurance companies.

The Best Car Insurance Companies in Minneapolis
The car insurance companies in Minneapolis were evaluated by MoneyGeek based on their average rates, claims ratings and customer satisfaction scores. The two best auto insurance providers in Minneapolis, according to our research, are:
- State Farm: MoneyGeek score of 87 out of 100
- American Family: MoneyGeek score of 83 out of 100
USAA received an excellent score of 99 out of 100 and is the top auto insurance provider in Minneapolis. However, since its policies are only offered to retired and active military personnel, as well as their families, we decided not to include it on our list of the best companies.

State Farm received high ratings across customer satisfaction, affordability and claims. Its full coverage policy costs about $943 per year on average in Minneapolis. It offers rideshare insurance as an add-on, which is an uncommon offering.
With State Farm's rideshare insurance, your medical, rental car reimbursement and roadside assistance coverage will continue to apply when you are driving for a ridesharing operator. This insurance covers you while you wait to be hired by a rider and bridges the insurance gap that happens between being hired and beginning a ride. In addition, State Farm also offers two relatively common add-ons: rental car reimbursement and roadside assistance.
Read MoneyGeek's State Farm auto Insurance Review
Despite its subpar claims score, American Family received high scores for stability, consumer satisfaction and affordability. In Minneapolis, its full coverage policy costs an average of around $1,058 per year, and original equipment manufacturer (OEM) coverage is a unique add-on.
American Family’s OEM coverage prevents the use of aftermarket parts when your vehicle is being repaired. Additionally, American Family offers rideshare insurance and accident forgiveness as supplemental coverages. Its gap insurance coverage can cover the difference between the amount you owe on your car and the cost of replacing it with a new one.
Read MoneyGeek's American Family auto Insurance Review








Average Cost of Car Insurance by Postal Code
A person's ZIP code affects how much car insurance companies charge them for insurance. Car insurance companies consider the region's road conditions, accident rate, car theft rates and more. The region of Minneapolis with the most expensive auto insurance average (55407) may pay an average of $1,401 a year, whereas residents of the region's cheapest ZIP code (55433) may pay $1,121 a year.
- Zip CodeState Minimumper year
- 55433$1,121
- 55423$1,155
- 55443$1,214
- 55407$1,401
Factors That Impact Insurance Costs in Minneapolis
In addition to individual driver needs and history, location-specific factors like personal injury protection coverage requirements and the percentage of uninsured motorists also contribute to car insurance rates in Minneapolis. How Minneapolis ranks compared to the 300 most populous cities in the United States can have a significant impact on premium costs.
About Mark Fitzpatrick
