The Cheapest Car Insurance in Minnesota for 2022

The cost of car insurance depends on factors like age, credit score, driving history and coverage amount. While AAA provides the lowest rates to Minnesota drivers, your premium may be more or less based on these factors.

For example, State Farm has the cheapest cost for drivers with a ticket, DUI as well as senior and young drivers. For drivers with bad credit scores, GEICO provides the best rates, while USAA is the cheapest option for current and former military members.

cheapestauto insuranceMinnesota2022

The Cheapest Car Insurance in Minnesota

Cheapest for minimum liability - AAA

Cheapest for full coverage - Farmers

Cheapest for drivers with a DUI - State Farm

Cheapest for drivers with a ticket - State Farm

Cheapest for drivers with bad credit - GEICO

Cheapest for senior drivers - State Farm

Cheapest for student drivers - State Farm

Minimum coverage car insurance in Minnesota only meets the state’s requirements. However, it doesn’t include comprehensive and collision coverage. Liability coverage is less expensive but may not offer adequate protection in an auto accident.

The cheapest car insurance companies in Minnesota for minimum coverage are:

• AAA: $509 per year
• Farmers: $561 per year

USAA, available to military members and their families, is the cheapest auto insurance option in Minnesota at an average of $421 per year. The most expensive car insurance for minimum coverage is Progressive, costing $1,081 per year on average.

Cheapest Minimum Car Insurance in Minnesota

These prices are only estimates based on rates for an average Minnesota driver and should not be used to compare insurance prices.

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It’s smart to compare car insurance quotes so you can find the lowest prices. A full coverage policy with comprehensive and collision insurance and higher liability limits can protect you against most road and off-road accidents in Minnesota. It costs more than minimum coverage, but it covers the cost of damages to your car.

The most affordable car insurance providers in Minnesota for full coverage are:

• Farmers: $940 per year
• State Farm: $962 per year

For current and former military, USAA offers the cheapest full coverage insurance in the state at $792 per year on average.

Progressive is the costliest company for full coverage, with average premiums of $1,622 per year.

Cheapest Full Coverage Car Insurance in Minnesota

Please keep in mind that your individual costs will differ from these examples. The prices are for a policy with comprehensive and collision insurance with $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident.

You can easily get an accurate online quote in Minnesota on the websites of most car insurance companies.

• When comparing quotes, make sure to use consistent limits. For example, if you get a quote from one insurer for $100,000 in bodily injury liability insurance, you should ensure to use the same number when comparing rates with other providers.
• You can use MoneyGeek’s calculator to find out the cost of car insurance in Minnesota for the average driver without providing more personal information. To get a personalized quote, however, you will be required to provide more information.
• In Minnesota, the cheapest companies for minimum coverage are USAA, AAA and Farmers. You can begin your search with these providers.

Auto Insurance Calculator

State

Minnesota

Age

40

Driving Record

Clean

Credit Score

Excellent

Vehicle Type

Compact

Vehicle Year

2020

Liability Coverage

State Min

Comprehensive and Collision Insurance

None

Gender

Female

Add Student Driver

Click the section of the wheel in your price range to see options.

low end

on average

high end

Click your preferred price range to see company options.

Click an insurer below to visit their review page or continue to your personalized quote.

Company

Average Annual Rates

1.

USAA

$474

2.

AAA

$492

3.

State Farm

$607

4.

GEICO

$610

5.

Auto-Owners Insurance Co

$643

Drivers with a DUI are generally charged higher rates by insurers. In Minnesota, the average car insurance cost for a driver with a DUI is $2,395 per year compared to $1,199 for the average driver with a clean record.

The cheapest car insurance companies in Minnesota for a driver with a DUI and full coverage are:

• State Farm: $1,057 per year
• American Family: $1,059 per year

In comparison, USAA and Farmers are the cheapest insurance providers for drivers in Minnesota with clean records.

Average Car Insurance Rates With a DUI

From 2009-2018, 1,061 people in Minnesota died in alcohol-related car accidents. Additionally, 2% of Minnesota drivers said they drove after having too much to drink within the last 30 days.

The effects of a DUI on your driving record in Minnesota go beyond fines and jail time. A DUI also can adversely affect your car insurance, resulting in increased premiums.

Because Minnesota car insurance companies weigh a DUI on your driving record on varying scales, it’s unknown just how long it will negatively impact your car insurance rates. Therefore, to keep your rates down, you should shop around for different car insurance quotes each year when it’s time to renew your policy.

In Minnesota, your car insurance premiums increase once you get involved in an at-fault accident. On average, insurers charge drivers with at-fault accidents $1,713 per year for car insurance.

The cheapest car insurance in Minnesota for drivers with at-fault accidents is from:

• American Family: $1,059 per year
• State Farm: $1,151 per year

Former and current military members may also consider USAA as one of the cheapest options since it costs $1,116 per year to get car insurance from the company if you have an at-fault accident.

Cheapest Car Insurance With an At-Fault Accident

Even a minor driving offense like a speeding ticket can raise your car insurance costs. In Minnesota, drivers with a speeding ticket need to pay $1,559 per year on average for car insurance coverage compared to $1,199 for drivers without a ticket.

The least expensive car insurance carriers in Minnesota for a driver with a speeding ticket and full coverage are:

• State Farm: $1,057 per year
• American Family: $1,059 per year

USAA is the most affordable car insurance for drivers with tickets in the state at an average cost of $939 per year. However, this option is only available to current and former military members and their families.

Progressive is Minnesota’s most expensive car insurance option for drivers with tickets at an average of $1,999 per year.

Average Car Insurance Rates With a Ticket

Speeding and distracted driving tickets can impact car insurance rates and not in a good way. These are seen as indicators of a higher-risk driver, resulting in higher car insurance premiums. Distracted driving accidents are another indication of higher risk.

In some cases, speeding and distracted driving tickets will have short-term effects on car insurance rates, while other cases will see long-term effects. To get the cheapest car insurance in Minnesota under these circumstances, the best approach is to check with various Minnesota car insurance companies for car insurance quotes every year when it’s time to renew your policy.

It’s important to maintain a healthy credit score since it can reduce your car insurance costs. The average cost of car insurance for drivers with poor credit in Minnesota is $2,338 per year. Drivers with good credit pay $1,199 annually.

The most affordable car insurance companies in Minnesota for a driver with full coverage and poor credit are:

• GEICO: $1,737 per year
• American Family: $1.843 per year

USAA, exclusively available for military members, offers the most affordable car insurance for drivers with bad credit in Minnesota at an average of $1,631 per year. MetLife is the costliest option in the state at $3,587 per year.

Average Car Insurance Rates for Drivers With Bad Credit

Credit scores are yet another factor Minnesota car insurance companies use to evaluate the risk level of drivers. Simply put, the higher the credit score, the lower the risk and the lower the insurance costs. In Minnesota, the average credit score is 733.

A good credit score is generally considered 700 or higher. There are steps you can take to raise your credit score, which can result in lower insurance rates. In the meantime, if you have bad credit, you can still find affordable car insurance in Minnesota by shopping around and getting personalized quotes from several different companies.

Seniors typically pay slightly higher car insurance rates than middle-aged and young adult drivers. In Minnesota, a senior driver is charged $1,212 per year on average for auto insurance coverage compared to $1,199 for the average driver.

The cheapest car insurance providers in Minnesota for senior drivers for full coverage are:

• State Farm: $883 per year
• AAA: $1,011 per year

USAA is the most affordable car insurance for seniors at $855 per year, on average. It is only available to military members and their families.

Progressive is the most expensive car insurance for seniors in Minnesota at an average of $1,818 annually.

Average Car Insurance Rates for Seniors

As they get older, seniors in Minnesota naturally become higher-risk drivers due to declining physical and, possibly, mental health faculties. However, older drivers generally are safe in Minnesota. According to the Minnesota Office of Traffic Safety, 20.4% of all licensed drivers in 2018 were age 65 and older. 22.1% of all fatal Minnesota crashes in 2017 were caused by senior drivers. This will help keep the cost of car insurance for seniors affordable.

Car insurance for seniors can vary based on a number of factors, including their age, so it’s a good idea to compare car insurance quotes from several Minnesota car insurance companies every year when preparing to renew a policy.

Auto insurance policies are more costly for younger drivers because they are considered to be less experienced. In Minnesota, the annual cost of car insurance for a 16-year-old is $2,926. Meanwhile, 25-year-old drivers pay $1,553 per year for the same coverage.

The cheapest car insurance coverage in Minnesota for drivers between the age of 16 and 25 is State Farm. According to MoneyGeek, State Farm has the lowest rates for our sample drivers whose age falls between the 16-25 range.

Annual Car Insurance In Minnesota for Young Drivers

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• Age
  Average Cost
  Cheapest Company
  Company Cost
• 16
  $2,926
  State Farm
  $2,297
• 17
  $2,776
  State Farm
  $2,067
• 18
  $2,627
  State Farm
  $1,863
• 19
  $2,786
  State Farm
  $1,819
• 20
  $2,420
  State Farm
  $1,663
• 21
  $1,969
  State Farm
  $1,574
• 22
  $1,838
  State Farm
  $1,446
• 23
  $1,603
  State Farm
  $1,312
• 24
  $1,507
  State Farm
  $1,216
• 25
  $1,553
  GEICO
  $1,082

Show more

In most cases, insurance companies will not charge for someone with a learner's permit when added to their parent’s policy. Once teens have a provisional or full license, they must have auto insurance in order to drive unaccompanied. Typically, it is cheaper for parents to add a young driver to a family policy. Additionally, student discounts may be available to reduce car insurance premiums for young drivers, such as getting good grades, taking a driver’s education course and driving a midsize sedan.

Military discounts on auto insurance are available for active-duty members of the armed forces and veterans in the North Star State, with about 600 active-duty members and more than 360,000 veterans. Major insurance carriers offer them, as well as specialized companies that work only with military members and vets. To find the best rate, consider your net worth and the value of your car, compare it with the mandated minimum insurance for Minnesota and get several quotes from insurance companies.

Once your auto insurance is squared away, as a military member, you won't need to register your insured vehicle while stationed in Minnesota so long as it is properly registered in your home state. Minnesota residents on active duty out-of-state are exempt from registration tax for up to one year after discharge. You must be the owner or co-owner and the vehicle must be registered in Minnesota throughout your service.

Average Rates for Minnesota service members

25 years$1,382
50 years$1,037

25 years$1,342
50 years$1,092

All vehicle owners must carry insurance in Minnesota, except the handful who choose to post a substantial bond. State law requires drivers to have insurance at all times, including coverage for vehicles that owners are "contemplating" using.

Proof of Insurance in Minnesota

State law requires drivers to show an insurance card or other proof of coverage when:

• Registering or renewing a vehicle
• Taking a driving test
• Requested by a law enforcement officer

The state legally allows drivers to carry proof of insurance electronically on a mobile device. Whether you carry it on your phone or in your wallet, your proof of insurance should include your coverage level, the insurance company's name, the policy’s expiration date and a list of insured vehicles.

Minimum Liability Insurance Requirements in Minnesota

Minnesota has more basic insurance requirements than many other states. The types and minimum amounts of vehicle insurance you need to buy are as follows.

Personal Injury Protection (PIP)

• $40,000 per person, per accident

Liability

• $30,000 for injuries to one person in an accident
• $60,000 for injuries to two or more individuals in an accident
• $10,000 for property damage

Uninsured Motorist Coverage

• $25,000 for injuries to one person in an accident
• $50,000 for injuries to two or more people in an accident

Underinsured Motorist Coverage

• $25,000 for injuries to one person in an accident
• $50,000 for injuries to two or more people in an accident

It's important to note that PIP coverage does not apply to motorcycles, so motorcyclists must purchase a separate policy.

Alternatives to Insurance in Minnesota

Residents have alternatives to purchasing automobile insurance in Minnesota as long as they can provide "proof of financial responsibility." In other words, the driver must prove he or she has enough savings or equity to meet the minimum liability requirements set by the state (via surety bond or cash deposit).

If the costs of a catastrophic accident exceed your bond or deposit, you'll still be liable for the costs.

High-Risk Auto Insurance Program in Minnesota

The Minnesota Automobile Insurance Plan offers high-risk insurance plans to people who have a bad driving record and can't get coverage. To be eligible, applicants must demonstrate they have attempted to obtain automobile insurance within the past 60 days and were denied coverage.

How Much Coverage Do You Need in Minnesota?

Minnesota requires more insurance than most other states. However, the minimum coverage still isn't likely to cover all of the costs of an accident. The required no-fault personal injury protection coverage (PIP) only applies to the injury expenses; it won't cover vehicle repair or replacement.

You may want to consider a more robust insurance policy that will offer better protection. Most consumer and insurance industry groups recommend you have at least $100,000 of liability coverage per injury and $300,000 per accident, according to the Insurance Information Institute.

Cheapest Car Insurance in Minnesota by City

Where you stay in Minnesota can greatly impact your car insurance cost. For instance, you will pay an average of $920 per year for the cheapest full coverage car insurance if you stay in Rochester, and $1,223 if you stay in Minnesota, which is also the highest among the cities included in our research.

Click on your city to see the car insurance rates in your location.

Average Insurance Rate by City in Minnesota

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• City
  Annually
  Monthly
• 1.
  Minneapolis
  $1,223
  $102
• 2.
  Rochester
  $920
  $77
• 3.
  St. Paul
  $1,167
  $97

To help consumers make an informed purchasing decision, MoneyGeek answered the following frequently asked questions about car insurance in Minnesota.

About the Author

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Karon Warren is a professional journalist who has covered personal finance, health insurance, home insurance, car insurance, mortgages, banking and more for two decades.

Karon earned her bachelor of arts degree in journalism from the University of Southern Mississippi. She is also a member of the American Society of Journalists and Authors. Karon uses her journalist skills to create in-depth, well-researched finance stories that educate people so they can make informed financial decisions that best serve their financial goals.

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