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Westfield offers the cheapest minimum coverage car insurance policies in Minnesota. American Family is the best choice for young adults, sports car drivers and those with at-fault accidents on their record. AAA is the cheapest for full coverage, seniors and military drivers, whileState Farm is the most affordable choice for drivers with speeding tickets and DUI records. Nationwide is the cheapest for teen drivers in Minnesota, whereas West Bend Mutual has the lowest rates for drivers with poor credit.

To help you compare insurers for cost and service quality, MoneyGeek ranked the top insurance companies in Minnesota.

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2023

Cheapest Car Insurance Minnesota (April 2023)

Cheapest Minimum Liability Car Insurance in Minnesota (April 2023)

The following companies offer the cheapest auto insurance policies for minimum coverage in the state:

  • Westfield: $314 per year
  • State Farm: $352 per year

Iowa Farm Bureau has the most expensive minimum coverage auto insurance in the state, with an average annual cost of $743.

All drivers in Minnesota are required by law to have bodily injury liability, property damage liability and uninsured/underinsured driver coverage.

Company
Annual Premium
Monthly Premium

State Farm

$305

$25

Westfield

$314

$26

State Farm

$352

$29

Westfield

$364

$30

AAA

$368

$31

Westfield

$384

$32

AAA

$392

$33

State Farm

$412

$34

In Minnesota, a minimum coverage car insurance policy only covers third-party damages, loss of property and damage from uninsured and underinsured drivers. For added protection for you and your vehicle, consider purchasing a full coverage policy that includes collision and comprehensive coverage.

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Cheapest Full Coverage Car Insurance in Minnesota (April 2023)

The following companies offer the cheapest full coverage auto insurance in Minnesota:

  • AAA: $759 per year
  • State Farm: $826 per year

At $1,444 per year, Farmers Union Insurance is the most expensive option in the state for a full coverage car insurance policy.

Your annual rate will go up if you add comprehensive and collision coverage to your minimum coverage policy. For instance, Westfield charges $543 more for a full coverage policy compared with a minimum coverage policy.

Full coverage auto insurance provides additional security against both on- and off-road mishaps if you need to make a claim. It also provides coverage for your personal medical costs and property damage.

Company
Annual Premium
Monthly Premium

State Farm

$305

$25

Westfield

$314

$26

State Farm

$352

$29

Westfield

$364

$30

AAA

$368

$31

Westfield

$384

$32

AAA

$392

$33

State Farm

$412

$34

Depending on how much car insurance you need, your rate will vary. MoneyGeek's full coverage sample policy includes the following coverages and limits:

  • $100,000 in bodily injury liability per person
  • $300,000 in bodily injury liability per accident
  • $100,000 in property damage liability per accident

To reduce your rate, drop comprehensive and collision coverage, raise your deductible or lower your liability limits. With less coverage, you may have to pay more out of pocket if you’re found at fault in an accident.

How to Compare Cheap Minnesota Car Insurance Quotes Online

Insurers typically offer online quotes, but it can take up to 15 minutes to provide the personal information required. This can add up when comparing rates for multiple lenders.

MoneyGeek’s auto insurance calculator makes it easier for you to get a quick quote for affordable car insurance. Simply input your age, driving history and gender from the selections below to get started.

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See how the Average Annual Auto Insurance Rates vary with the options chosen.

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Cheapest Car Insurance in Minnesota for Teens and Their Families (April 2023)

In Minnesota, the following companies offer the cheapest insurance policies for teens added to a family policy:

  • Nationwide: $1,850 per year for male teens and $1,742 per year for female teens
  • State Farm: $2,303 per year for male teens and $1,880 for female teens

Auto-Owners Insurance Co is the most expensive insurance, with an average cost of $2,794 for males and $2,599 for females.

Car insurance rates for teens significantly decrease as they age, with 19-year-olds getting the cheapest offers from providers. A 19-year-old male in Minnesota can get the lowest car insurance rates from Nationwide ($1,628).

It costs significantly less to add a 16-year-old driver to a family policy, which only costs around $2,530 than for a 16-year-old driver to purchase individual insurance costing approximately $4,682 per year. Individual coverage for a 16-year-old male driver in Minnesota costs $2,152 more than a family policy with a 16-year-old male driver.

Company
Family Plan Annual Premium
Individual Plan Annual Premium

GEICO

$635

$1,287

GEICO

$771

$1,564

GEICO

$820

$1,662

State Farm

$891

$929

GEICO

$943

$1,431

Nationwide

$958

$1,644

State Farm

$983

$1,025

State Farm

$988

$1,030

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MONEYGEEK EXPERT TIP

On average, car insurance rates for male teens tend to be significantly more expensive than for female teens. This rate difference is not as notable when drivers reach their 20s and beyond.

Many auto insurance providers offer discounts to teen drivers — like good student and distance learner discounts. For instance, students who earn at least a B average or make the dean's list may qualify for a discount of up to 15% from GEICO.

Cheapest Car Insurance in Minnesota for Young Adults (April 2023)

Drivers in their 20s can obtain the cheapest full coverage car insurance from the following companies in Minnesota:

  • American Family: $839 per year
  • AAA: $1,011 per year

Western National is the most expensive car insurance provider for drivers in their 20s, with an average annual premium cost of $1,928.

With American Family, a 25-year-old driver in Minnesota pays $11 more per year than a 40-year-old driver for the same coverage.

Company
Annual Premium
Monthly Premium

State Farm

$305

$25

Westfield

$314

$26

State Farm

$352

$29

Westfield

$364

$30

AAA

$368

$31

Westfield

$384

$32

AAA

$392

$33

State Farm

$412

$34

Cheapest Car Insurance in Minnesota for Seniors (April 2023)

The following insurance companies offer the lowest rates for senior drivers in Minnesota:

  • AAA: $689 per year
  • State Farm: $724 per year

Country Financial has the most expensive auto insurance premium for seniors in the state, with an average yearly rate of $1,359.

With State Farm, older drivers typically pay $102 less per year for auto insurance than middle-aged drivers. However, as drivers approach their 70s and 80s, rates typically increase.

Company
Annual Premium
Monthly Premium

State Farm

$305

$25

Westfield

$314

$26

State Farm

$352

$29

Westfield

$364

$30

AAA

$368

$31

Westfield

$384

$32

AAA

$392

$33

State Farm

$412

$34

Senior drivers can receive additional auto insurance discounts in addition to senior-specific discounts. Discounts for senior drivers are offered by several providers, including Allstate, Farmers and GEICO.

Elderly drivers can also obtain the best insurance by comparing insurers’ rates, as age is simply one of many criteria that impacts the cost of car insurance.

Cheapest Car Insurance in Minnesota After a Ticket, Accident or DUI (April 2023)

For Minnesotan drivers with tickets and DUI histories, State Farm offers the cheapest rates. American Family offers the most affordable premiums for drivers with a record of at-fault accidents.

Car insurance companies typically charge more to risky drivers. You may be able to reduce the cost of your insurance by enrolling in state-approved driving courses and regularly having your record verified.

CHEAPEST CAR INSURANCE COMPANIES AFTER A DRIVING INCIDENT

Cheapest after a ticket: State Farm ($892 per year)
Cheapest after an accident: American Family ($828 per year)
Cheapest after a DUI: State Farm ($862 per year)

Cheapest Car Insurance in Minnesota After a Ticket

Drivers in Minnesota with a speeding ticket will get the best rates from the following insurance companies:

  • State Farm: $892 per year
  • American Family: $984 per year

Country Financial offers the most expensive car insurance for drivers with driving violations, at $1,876 per year. A speeding ticket in Minnesota can increase the cost of your insurance by $244.

Company
Annual Premium
Monthly Premium

State Farm

$336

$28

Westfield

$380

$32

State Farm

$385

$32

Westfield

$433

$36

State Farm

$455

$38

Westfield

$456

$38

Western National

$488

$41

Western National

$492

$41

Cheapest Car Insurance in Minnesota After an Accident

The following insurance providers offer the cheapest option for Minnesotan drivers with at-fault accidents on their records:

  • American Family: $828 per year
  • State Farm: $958 per year

Country Financial offers the most expensive auto insurance in Minnesota at $2,028 per year. Having an at-fault accident on your driving record may increase your rate by $410 per year.

Company
Annual Premium
Monthly Premium

State Farm

$368

$31

State Farm

$421

$35

Westfield

$473

$39

Western National

$488

$41

Western National

$492

$41

State Farm

$498

$42

American Family

$503

$42

American Family

$505

$42

Cheapest Car Insurance in Minnesota After a DUI

Drivers with a DUI offense can get the cheapest car insurance in Minnesota from the following companies:

  • State Farm: $862 per year
  • American Family: $984 per year

At $3,694 per year, GEICO is the most expensive provider in the state. In Minnesota, a DUI offense may increase the cost of your car insurance by $858 per year.

Company
Annual Premium
Monthly Premium

State Farm

$336

$28

State Farm

$385

$32

State Farm

$455

$38

Western National

$488

$41

Western National

$492

$41

American Family

$584

$49

American Family

$585

$49

American Family

$594

$50

Cheapest Car Insurance in Minnesota for Drivers With Poor Credit (April 2023)

The following companies offer the cheapest car insurance to drivers in Minnesota with poor credit:

  • West Bend Mutual: $1,319 per year
  • Nationwide: $1,511 per year

With an average yearly cost of $3,690, the most expensive insurer is Travelers.

One of the most important factors insurers evaluate when determining your premium is your credit score. Drivers with bad credit in Minnesota will pay approximately $1,133 more per year than those with good credit.

Company
Annual Premium
Monthly Premium

American Family

$1,573

$131

Nationwide

$1,747

$146

AAA

$2,013

$168

Westfield

$2,110

$176

West Bend Mutual

$2,219

$185

GEICO

$2,270

$189

Farmers Union Insurance

$2,454

$205

Allstate

$2,515

$210

Drivers with poor credit are more likely to file claims. Because of this, insurers typically charge them more for car insurance. Though this practice is illegal in some states, it’s permitted in Minnesota.

You can gradually reduce the cost of your insurance by raising your credit score, but you can also save money by choosing a company that offers discounts for safety features or bundling.

Cheapest Car Insurance in Minnesota for Sports Cars (April 2023)

The following companies offer the cheapest rates for sports car drivers in Minnesota:

  • American Family: $773 per year
  • State Farm: $951 per year

Allstate offers the most expensive car insurance in the state for sports car drivers, with an average annual cost of $1,445.

Sports cars typically cost more to insure than conventional cars because of their high repair and replacement expenses. In Minnesota, it costs $5 more to insure a Toyota Camry LE than a Ford Mustang.

Company
Annual Premium
Monthly Premium

State Farm

$305

$25

Westfield

$314

$26

State Farm

$352

$29

Westfield

$364

$30

AAA

$368

$31

Westfield

$384

$32

AAA

$392

$33

State Farm

$412

$34

In this study, the rates for a sports car were obtained using a Ford Mustang as our sample model. Your rate may vary based on your car’s model.

Electric vehicles, sports cars and luxury vehicles usually cost more to insurance than other model types, but this varies by state.

Cheapest Car Insurance in Minnesota for Military Drivers (April 2023)

For the lowest cost, veterans and active-duty military service members in Minnesota can purchase auto insurance from AAA at an average of $759 per year.

USAA also has inexpensive auto insurance plans, with an average annual premium cost of $847. Military members and their families have access to their plans in all 50 states.

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MoneyGeek Top Pick
AAA
  • $759 each year
  • Ranks first out of 15 insurers for affordability

In terms of financial stability and affordability, State Farm has a stellar reputation. It provides numerous discounts for auto insurance, including savings for bundling, safe driving, installing anti-theft systems and defensive driving.

Though State Farm does not provide any distinctive coverage, it does offer rideshare insurance to customers. A reduction in medical bills is also offered to drivers who have cars manufactured in 1994 or later.

Cheapest Car Insurance in Minnesota by City

One of the main factors impacting the cost of car insurance is the city in which you reside. Residents that live in neighborhoods with greater rates of theft, crashes and vandalism are more likely to file insurance claims and incur higher costs.

For instance, residents in Rochester can purchase the cheapest insurance from AAA at an average cost of $673 per year, whereas residents in Minneapolis will pay $940 for insurance from the same provider.

Explore the list of Minnesota cities below for a comparison of average vehicle insurance prices by location.

City
Cheapest Company
Annual Premium

Minneapolis

AAA

$940

Rochester

AAA

$673

St. Paul

AAA

$925

Car Insurance in Minnesota: What You Need to Know

Minnesotan drivers are required to carry liability insurance, PIP and uninsured and underinsured motorist coverage. More information on what you should know about auto insurance in Minnesota is provided below.

Minnesota Car Insurance Requirements

In accordance with Minnesota's auto insurance laws, drivers must carry a minimum amount of liability insurance as well as PIP and uninsured and underinsured motorist coverage.

Drivers who have a history of serious traffic violations in Minnesota are required to submit an SR-22 form.

  • male icon

    Bodily Injury Liability

    In Minnesota, you must have a minimum of $30,000 in bodily injury liability coverage per person and $60,000 in bodily injury liability coverage per accident. This covers the medical expenses of others if you’re found at fault in an accident.

  • accident2 icon

    Property Damage Liability

    In Minnesota, you’re required to have $10,000 in property damage liability per accident. You may raise your limits if you want extra protection against the costs of damage to property.

  • hospital icon

    Personal Injury Protection

    All drivers in Minnesota are required to have PIP. Regardless of who was responsible for the collision, it covers your injuries. Minnesota is a no-fault state.

  • carInsurance icon

    Uninsured/Underinsured motorist coverage

    All drivers must have both underinsured and uninsured motorist coverage, as per Minnesota law. For a person involved in a collision, the minimum underinsured motorist coverage is $25,000 to cover potential fatalities or serious injuries.

MoneyGeek advises purchasing bodily injury liability insurance with minimum levels of $100,000 per person and $300,000 per accident and raising the $100,000 cap on property damage coverage.

If you lease your vehicle, you may be required to carry comprehensive and collision coverage. Comprehensive insurance will pay for the necessary repairs for off-road damages to your vehicle, whereas collision insurance will cover expenses if your car collides with another car or object.

Car Insurance Alternatives in Minnesota

The Minnesota Automobile Insurance Plan accepts applications from Minnesotans who have recently been turned down for auto insurance on the free market. This network of insurers was created to help high-risk drivers obtain auto insurance coverage.

Companies or wealthy individuals may be eligible for automobile self-insurance in Minnesota. To qualify, drivers must meet numerous requirements, including owning at least 25 motor vehicles registered under the same name, having a minimum income of $5 million and more. When the Commissioner of Commerce is confident that you have the financial stability and administrative capabilities necessary to fulfill all obligations and responsibilities under the No-Fault Act, approval will be given.

FAQs About Car Insurance in Minnesota

It may be complicated to explore and compare auto insurance providers given the options. To learn more about auto insurance in Minnesota, read the answers to some frequently asked questions below.

Expert Advice on Finding Cheap Car Insurance in Minnesota

To help you find credible and accurate insight into car insurance in Minnesota, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.

  1. What steps can drivers in Minnesota take to find affordable car insurance?
Andrew Dressel
Andrew Dressel

Financial Planner at Abundo Wealth

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.


sources
  • Minnesota Department of Commerce. "Self Insurance." Accessed December 15, 2022.