Cheapest and Best Car Insurance in Minneapolis, MN (June 2024)

In Minneapolis, Minnesota, Westfield offers the cheapest minimum coverage car insurance, while full coverage is most affordable with AAA. For families with teens, Nationwide is the most cost-effective option. Westfield offers the best value for car insurance, combining affordable rates with high-quality service, while the top company for customer service is West Bend Mutual. Ultimately, the best policy for you hinges on personal coverage preferences and needs.

MoneyGeek found that the following companies offer the cheapest car insurance in Minneapolis:

• Westfield: $572 per year
• AAA: $618 per year

The rates listed above are for minimum coverage policies. The most expensive minimum coverage policy in Minneapolis is from GEICO at $1,048 per year — $476 more than the cheapest option. Always shop around to ensure you're getting an affordable rate.

Minnesota state law requires that all drivers across the state carry at least minimum coverage car insurance with the following limits:

• $30,000 bodily injury per person
  
• $60,000 bodily injury per accident
  
• $10,000 property damage liability per accident
  
• $25,000 uninsured motorist bodily injury per person
  
• $50,000 uninsured motorist bodily injury per accident
  
• $40,000 personal injury protection (PIP) per person
  

If you're insured for the minimum $30,000 per person in bodily injury liability and you're at fault in an accident where the other party's claim exceeds that, you'd need to cover the additional costs out of pocket. Remember, these are just minimums, and it's generally a good idea to purchase increased liability coverage as well as comprehensive and collision coverages for a greater level of financial protection.

MoneyGeek found that AAA offers the cheapest full coverage car insurance in Minneapolis, followed by Farm Bureau:

• AAA: $998 per year
• Farm Bureau: $1,037 per year

At the opposite end of the spectrum, GEICO is the most expensive full coverage option at $1,914 annually. The $916 difference between AAA and GEICO highlights the importance of comparing rates to ensure you're getting the best deal for full coverage car insurance. Full coverage policies are more costly than minimum coverage because they provide broader financial protection, including collision and comprehensive coverage.

A full coverage policy includes coverage for damage to your own vehicle in the form of comprehensive and collision coverages. It usually also includes increased liability limits.

• Collision Insurance: This provides coverage for your vehicle in the event of a collision, whether with another vehicle or a stationary object like a tree or light pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This coverage insures your vehicle against various types of damage not caused by collisions, including theft, vandalism, fires, natural disasters and being struck by an animal like a deer.

If you have a new vehicle, it's wise to opt for full coverage insurance for more robust financial protection. If you're leasing or have a car loan, you are typically required to carry full coverage insurance.

On the other hand, owners of older vehicles may find that the extra cost — which can amount to several hundred dollars more per year — is not justified by the value of the vehicle. When deciding how much car insurance coverage you need, consider your ideal balance: more extensive coverage comes with higher premiums, but getting less coverage means you may pay more out of pocket if you need to file a claim.

MoneyGeek found that the cheapest car insurance options for drivers with violations vary based on the type of driving offense:

• Speeding Ticket: Farm Bureau ($1,143 per year)
• At-Fault Accident: American Family ($1,148 per year)
• DUI: American Family ($1,372 per year)

GEICO has the most expensive average rate for a DUI at $6,249 per year, while AAA has the highest for speeding tickets at $1,473 and at-fault accidents at $1,472. You should expect your premium to increase following a driving offense, but it's still possible to find affordable rates.

In Minneapolis, as in most cities, insurance rates typically increase based on the severity of a driving offense due to the increased risk perceived by insurers. A Minneapolis driver with a speeding ticket could pay an average annual rate of approximately $2,689, while someone with a DUI might face a steep hike up to about $3,923 annually on average. Drivers with offenses should shop around to find the best rates and mitigate the impact of their offense on their car insurance costs.

MoneyGeek found that Nationwide offers the cheapest average rates for families with teen drivers in Minneapolis:

• Nationwide: $2,176 per year for female teens and $2,307 per year for male teens
• State Farm: $2,290 per year for female teens and $2,765 per year for male teens

These rates are for a teen added to an existing family policy. The most expensive provider, Allstate, charges $2,626 per year for female teens. Male teens typically pay higher rates in most states as they are statistically more likely to engage in risky driving behavior and be involved in accidents.

Teens pay the highest car insurance premiums of any age group due to their lack of driving experience and higher accident rates. It's much cheaper to add them to an existing family policy — on average, a teenage driver in Minneapolis pays about $5,447 per year for an individual policy compared to $2,892 when added to a family plan. In addition, minors under 18 cannot legally purchase an individual policy without a parent or guardian co-signing.

MoneyGeek found that the following companies offer the cheapest car insurance for those with military backgrounds in Minneapolis:

• AAA: $998 per year
• Farm Bureau: $1,037 per year

While AAA offers the lowest average annual premium, it's worth noting that USAA ranks fourth with an average rate of $1,159 per year. Although slightly higher in cost, USAA is known for its services tailored to the specific needs of active duty military members, making it an excellent option for those eligible for its policies.

In Minneapolis, comparing car insurance rates is a key strategy for cost savings. However, the process is often cumbersome, potentially requiring over an hour to examine rates from three or more companies.

MoneyGeek's car insurance calculator can help you streamline this process. By inputting details like age, driving history, credit score and preferred coverage, you can instantly receive rate estimates.

Selecting the best auto insurance for you depends on how much you value service, cost, coverage and other factors. MoneyGeek's unique scoring system evaluated Minneapolis's top car insurance providers within distinct categories:

• Best overall: Westfield (MoneyGeek score 79 out of 100)
• Best for service: West Bend Mutual (MoneyGeek score 85 out of 100)
• Best cheap: Westfield (MoneyGeek score 87 out of 100)

Westfield is the top pick in Minneapolis for overall value and affordability, indicating a blend of cost-effective pricing and satisfying service. West Bend Mutual, the winner for best service, is ideal for those seeking premium customer care, regardless of cost.

According to MoneyGeek's study, the following companies offer the overall best car insurance in Minneapolis:

• Westfield: MoneyGeek score of 81 out of 100 ($1,252 per year)
• West Bend Mutual: MoneyGeek score of 90 out of 100 ($1,592 per year)

These rates are for full coverage policies. Westfield earned high satisfaction and affordability scores, contributing significantly to its overall MoneyGeek score and reflecting the company's high-quality service and reliable insurance coverage.

MoneyGeek found that the following companies are the best options in Minneapolis for consumers seeking top-notch customer service, regardless of cost:

• West Bend Mutual: MoneyGeek score of 85 out of 100 ($1,592 per year)
• Westfield: MoneyGeek score of 79 out of 100 ($1,252 per year)

These rates are for full coverage policies. West Bend Mutual stands out in the Minneapolis car insurance market primarily due to its exceptional customer satisfaction rating and claims handling score. These elements are significant contributors to the MoneyGeek score, indicating that customers can expect a superior level of service throughout the life of their policy.

The following companies provide the best cheap car insurance in Minneapolis, combining affordability with customer satisfaction.

• Westfield: MoneyGeek score of 87 out of 100 ($572 per year)
• Auto-Owners: MoneyGeek score of 81 out of 100 ($685 per year)

These rates are for minimum coverage policies. Westfield stands out due to its exceptional affordability, offering significant savings without compromising on the quality of service. The high scores in claims handling and customer satisfaction are the other major contributors to Westfield's top MoneyGeek score.

In Minneapolis, the average cost of car insurance is $1,383 annually. This is higher than the average car insurance cost in Minnesota as a whole, which is $1,243 per year. However, it's lower than the national average of $1,720.

Car insurance premiums are influenced by various factors, including location. Areas with higher population density, traffic congestion and accident rates tend to have higher insurance costs. For example, in Minnesota, the city of St. Paul is the most expensive for car insurance with an average premium of $1,406 per year, while Rochester is the least expensive, at $1,001 per year — a difference of $405 between the two cities. In less populated, non-metro areas where traffic density is lower, car insurance rates may be further reduced.