The Cheapest Car Insurance in Minnesota (April 2023)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.