To find the best car insurance, Minnesota drivers must compare personalized quotes from multiple carriers in the state. Insurers base their quotes on individual circumstances, such as your age, driving history, coverage level and location. MoneyGeek’s ranking of the best car insurance in Minnesota aims to give drivers an idea about the cost of annual premiums and what affects the prices. MoneyGeek’s rating is based on average annual premiums, claims experience, customer service and financial strength, among other factors. Comparing car insurance quotes from some of the best companies in Minnesota could help you save up to $829.
The Best Cheap Car Insurance in Minnesota for 2021
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Cheapest Car Insurance Companies and Quotes in Minnesota
To rank the most affordable car insurance in Minnesota, MoneyGeek considered the average annual premiums for comprehensive and collision coverage. However, the prices listed are just average costs that can change depending on individualized factors. Comparing quotes is the best way to find the most suitable and accurate plan.
Average Comprehensive and Collision Rates in Minnesota
- CompanyAnnuallyMonthly
- 1. USAA$792$66
- 2. Farmers$940$78
- 3. State Farm$962$80
- 4. AAA$997$83
- $1,021$85
The rates listed above are approximate annual premiums for the average driver. Actual costs depend on various factors, including age, gender, driving record, vehicle type and location. To find the best car insurance in Minnesota, check with several companies for individual quotes tailored to your personal factors.
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Cheapest Liability Car Insurance in Minnesota
Minimum coverage auto insurance policies in Minnesota only meet the state’s requirements — they don’t include collision and comprehensive coverage. Liability-only insurance is cheaper, but it may give you inadequate protection in a car accident. USAA is the most affordable option in Minnesota for the state minimum and 50/100/50 liability-only coverages, but its services are only for veterans, current military staff and their families. The next cheapest provider is AAA for both kinds of coverage.
Average Cost for Liability Coverage
- CompanyAnnuallyMonthly
- 1. USAA$421$35
- 2. AAA$509$42
- 3. Farmers$561$47
- 4. State Farm$605$50
- 5. GEICO$637$53
The Best Car Insurance Companies in Minnesota for 2021
MoneyGeek determined the final rating of auto insurance providers in Minnesota using information from reputable outlets like J.D. Power and AM Best, combining them with industry standards for insurance rating and review. Considering these aspects, MoneyGeek calculated the scores of each insurer out of 100.
The best car insurance providers in this ranking are based on the affordability of average annual rates, claims experience, customer satisfaction and financial strength.
Expand All Rankings +
2
Auto-Owners Insurance CoScore: 97.5
+
9
American FamilyScore: 77.5
+
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
Market Share by Company
The National Association of Insurance Commissioners reports that the largest insurer in Minnesota is State Farm, with 23.8% of the total market share. Progressive has the second largest share of the market, with 17.4%.
- CompanyMarket Share
- 1. State Farm23.8%
- 2. Progressive17.4%
- 11.8%
- 4. Farmers5.7%
- 5. Allstate5.5%
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What Is the Average Cost of Car Insurance in Minnesota?
Many factors affect auto insurance rates. MoneyGeek calculated the average cost for a 40-year-old male driver with a Toyota Camry and a clean driving record. Specific costs can be higher or lower than these averages since insurance providers consider individualized factors like age, credit score and driving history.
- Average Driver: $1,199
- DUI: $2,395
- Speeding Ticket: $1,559
- Poor Credit Score: $2,338
- Seniors: $1,212
- Students: $2,921
Cheapest Car Insurance for Drivers With a DUI in Minnesota
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.
Average Car Insurance Rates With a DUI
- CompanyAnnuallyMonthly
- 1. State Farm$1,057$88
- $1,059$88
- 3. Farmers$1,320$110
- 4. USAA$1,474$123
- 5. Progressive$1,844$154
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.
Cheapest Car Insurance With Tickets in Minnesota
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.
Average Car Insurance Rates With a Ticket
- CompanyAnnuallyMonthly
- 1. USAA$939$78
- 2. State Farm$1,057$88
- $1,059$88
- 4. Farmers$1,098$92
- 5. GEICO$1,292$108
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.
Cheapest Car Insurance Companies in Minnesota 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, therefore, the lower the insurance costs. In Minnesota, the average credit score is 733.
Average Car Insurance Rates for Drivers With Bad Credit
- CompanyAnnuallyMonthly
- 1. USAA$1,631$136
- 2. GEICO$1,737$145
- $1,843$154
- 4. Allied$1,845$154
- 5. State Farm$1,903$159
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.
Cheapest Car Insurance Companies in Minnesota 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.
Average Car Insurance Rates for Seniors
- CompanyAnnuallyMonthly
- 1. USAA$855$71
- 2. State Farm$883$74
- 3. AAA$1,011$84
- 4. Farmers$1,037$86
- $1,043$87
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.
Cheapest Car Insurance for Students in Minnesota
Minnesota has a graduated driver's license system to introduce teenage drivers to the behind-the-wheel experience, including a learning permit, a provisional license and a full license. In most cases, insurance companies will not charge for someone with a learner's permit when added to their parents’ policy. Once teenagers 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 teenage driver to a family policy. Providing car insurance for college students varies based on where they attend school, so talk with your insurance agent to ensure your student’s coverage is sufficient.
While teens and college students continue to be high risk drivers due in large part to their inexperience, there is good news. According to the Minnesota Department of Public Safety, Office of Traffic Safety, the number of teen-related accidents dropped from 17% in 2017 to 16% in 2018. The number of teen fatalities also dropped from 11% in 2011 to 8% in 2018. These lower rates can help keep teen car insurance rates affordable.
Average Car Insurance Rates for Students
- CompanyAnnuallyMonthly
- 1. State Farm$2,076$173
- 2. Allstate$2,799$233
- 3. GEICO$3,114$260
- 4. Allied$3,204$267
- 5. Progressive$3,434$286
Insurance Rate Information for Military Drivers and Veterans
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
50 years$1,037
25 years$1,342
50 years$1,092
50 years$1,092
Car Insurance in Minnesota: What You Need to Know
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.
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sources
- Centers for Disease Control. "Sobering Facts: Alcohol-Impaired Driving State Fact Sheets." Accessed January 18, 2021.
- Experian. "Experian 2020 Consumer Credit Review." Accessed January 18, 2021.
- Governing: The Future of States and Localities. "Military Active-Duty Personnel, Civilians by State." Accessed January 18, 2021.
- Minnesota Department of Public Safety, Office of Traffic Safety. "Minnesota Motor Vehicle Crash Facts 2018." Accessed March 14, 2020.
- Minnesota Office of Traffic Safety. "Older Drivers." Accessed March 14, 2020.
- National Association of Insurance Commissioners. "2018 Market Share Reports." Accessed January 18, 2021.
- National Highway Traffic Safety Administration. "Traffic Safety Facts." Accessed January 18, 2021.
- NOLO. "DUI Laws by State." Accessed January 18, 2021.
- Veterans Data Council. "Supporting Veterans in Louisiana." Accessed January 18, 2021.