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The Best Cheap Car Insurance Companies for Minnesota Drivers in 2020

When shopping around for affordable care insurance in Minnesota, residents likely will be able to choose from the top, familiar car insurance companies for rates. Here is a sample of quotes for the average driver.

Company
Amount
1. American Family
In 2020 American Family ranked #1 in Minnesota for the cheapest car insurance on average.
$1,145
per year
2. State Farm
In 2020 State Farm ranked #2 in Minnesota for the cheapest car insurance on average.
$1,359
per year
3. Illinois Farmers Ins
In 2020 Illinois Farmers Ins ranked #3 in Minnesota for the cheapest car insurance on average.
$2,139
per year
4. Allstate
In 2020 Allstate ranked #4 in Minnesota for the cheapest car insurance on average.
$2,281
per year
5. Progressive
In 2020 Progressive ranked #5 in Minnesota for the cheapest car insurance on average.
$2,570
per year
6. Progressive
In 2020 Progressive ranked #6 in Minnesota for the cheapest car insurance on average.
$2,776
per year

The above rates are the approximate cost for the average driver. Specific costs depend on a number of factors, including age, gender, driving record, type of vehicle and location. To find the best car insurance in Minnesota, check with several companies for individual quotes tailored to your personal factors.

The Best Car Insurance Companies in Minnesota for 2020

In an effort to determine the best car insurance companies in Minnesota, MoneyGeek uses a unique rating system based on a combination of ratings from reputable outlets such as JD Power and AM Best. These include JD Power’s Affordability score and AM Best’s financial strength rating, which examine factors such as affordability, reliability, ability to pay policyholders and customer service. These ratings are weighed equally in order to provide a score on a 100-point scale.

Expand all Rankings +

1

USAAScore: 100
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

2

Auto-Owners Insurance CoScore: 97.5
+

5/5

User Satisfaction

4/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

3

GEICOScore: 92.5
+

4/5

User Satisfaction

3/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

4

AllstateScore: 85
+

4/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

5

TravelersScore: 85
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A++

Financial Stability

6

ProgressiveScore: 85
+

3/5

User Satisfaction

3/5

Claims Ratings

4/5

Affordability

A+

Financial Stability

7

AAAScore: 82.5
+

3/5

User Satisfaction

3/5

Claims Ratings

4/5

Affordability

A

Financial Stability

8

State FarmScore: 80
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A

Financial Stability

9

American FamilyScore: 77.5
+

3/5

User Satisfaction

2/5

Claims Ratings

2/5

Affordability

A+

Financial Stability

10

SafecoScore: 77.5
+

2/5

User Satisfaction

4/5

Claims Ratings

2/5

Affordability

A

Financial Stability


There are many Minnesota car insurance companies, but it is State Farm that is the largest car insurance company in the state with 23.76% of the market share.

Market Share by Company

Company
Market Share
1. State Farm
23.76%
2. Progressive
17.42%
3. American Family
11.81%
4. Farmers
5.65%
5. Allstate
5.53%
6. GEICO
3.88%
7. USAA
3.18%
8. Auto-Owners Insurance Co
3.15%
9. Travelers
2.98%
10. Liberty Mutual
2.87%

Cheapest Car Insurance for Drivers With a DUI in Minnesota

The effects of a DUI on your driving record in Minnesota go beyond jail time of up to 90 days and a $1,000 fine. It also can adversely affect your car insurance, resulting in increased premiums.

Company
Amount
1. State Farm
In 2020 State Farm ranked #1 in Minnesota for the cheapest car insurance for dui.
$1,317
per year
2. Illinois Farmers Ins
In 2020 Illinois Farmers Ins ranked #2 in Minnesota for the cheapest car insurance for dui.
$2,452
per year
3. Progressive
In 2020 Progressive ranked #3 in Minnesota for the cheapest car insurance for dui.
$2,918
per year
4. Allstate
In 2020 Allstate ranked #4 in Minnesota for the cheapest car insurance for dui.
$2,988
per year
5. American Family
In 2020 American Family ranked #5 in Minnesota for the cheapest car insurance for dui.
$3,188
per year
6. Progressive
In 2020 Progressive ranked #6 in Minnesota for the cheapest car insurance for dui.
$3,301
per year

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 for MN Speeding or Distracted Driving Tickets

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 Minnesota, there were 349 distracted driving accidents in 2018.

Company
Amount
1. State Farm
In 2020 State Farm ranked #1 in Minnesota for the cheapest car insurance for distracted drivers.
$1,413
per year
2. American Family
In 2020 American Family ranked #2 in Minnesota for the cheapest car insurance for distracted drivers.
$1,718
per year
3. Illinois Farmers Ins
In 2020 Illinois Farmers Ins ranked #3 in Minnesota for the cheapest car insurance for distracted drivers.
$2,300
per year
4. Allstate
In 2020 Allstate ranked #4 in Minnesota for the cheapest car insurance for distracted drivers.
$2,913
per year
5. Progressive
In 2020 Progressive ranked #5 in Minnesota for the cheapest car insurance for distracted drivers.
$3,083
per year
6. Progressive
In 2020 Progressive ranked #6 in Minnesota for the cheapest car insurance for distracted drivers.
$3,423
per year

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.

Company
Amount
1. American Family
In 2020 American Family ranked #1 in Minnesota for the cheapest car insurance for poor credit history drivers.
$1,086
per year
2. State Farm
In 2020 State Farm ranked #2 in Minnesota for the cheapest car insurance for poor credit history drivers.
$1,294
per year
3. Illinois Farmers Ins
In 2020 Illinois Farmers Ins ranked #3 in Minnesota for the cheapest car insurance for poor credit history drivers.
$2,177
per year
4. Allstate
In 2020 Allstate ranked #4 in Minnesota for the cheapest car insurance for poor credit history drivers.
$2,374
per year
5. Progressive
In 2020 Progressive ranked #5 in Minnesota for the cheapest car insurance for poor credit history drivers.
$2,477
per year
6. Progressive
In 2020 Progressive ranked #6 in Minnesota for the cheapest car insurance for poor credit history drivers.
$2,656
per year

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 still can 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. In fact, according to the Minnesota Office of Traffic Safety, 20.4% of all licensed drivers in 2018 were age 65 and older, but they were involved in just 15.4% of all crashes. This will help keep the cost of car insurance for seniors affordable.

Company
Amount
1. American Family
In 2020 American Family ranked #1 in Minnesota for the cheapest car insurance for seniors.
$1,140
per year
2. State Farm
In 2020 State Farm ranked #2 in Minnesota for the cheapest car insurance for seniors.
$1,285
per year
3. Illinois Farmers Ins
In 2020 Illinois Farmers Ins ranked #3 in Minnesota for the cheapest car insurance for seniors.
$2,535
per year
4. Progressive
In 2020 Progressive ranked #4 in Minnesota for the cheapest car insurance for seniors.
$2,705
per year
5. Allstate
In 2020 Allstate ranked #5 in Minnesota for the cheapest car insurance for seniors.
$2,786
per year
6. Progressive
In 2020 Progressive ranked #6 in Minnesota for the cheapest car insurance for seniors.
$2,847
per year

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

Minnesota Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$1,493 INCREASE

This is a difference of 100%.

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 teeangers 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.

Company
Amount
1. American Family
In 2020 American Family ranked #1 in Minnesota for the cheapest car insurance for students.
$2,732
per year
2. State Farm
In 2020 State Farm ranked #2 in Minnesota for the cheapest car insurance for students.
$3,630
per year
3. Illinois Farmers Ins
In 2020 Illinois Farmers Ins ranked #3 in Minnesota for the cheapest car insurance for students.
$3,877
per year
4. Progressive
In 2020 Progressive ranked #4 in Minnesota for the cheapest car insurance for students.
$4,199
per year
5. Progressive
In 2020 Progressive ranked #5 in Minnesota for the cheapest car insurance for students.
$5,037
per year
6. Allstate
In 2020 Allstate ranked #6 in Minnesota for the cheapest car insurance for students.
$6,643
per year


Premium Comparison by Student Type

PREMIUM COMPARISON FOR TWO ADULTS + A 16-YEAR-OLD

car
Average premium for two 2014

Mustang GTs

$5,009
car
Average premium for two 2008

Town and Country Limiteds

$3,246
Annual benefits of minivans:$1,763 saved

This is 35% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$673 DECREASE

This is a savings of 20%.

Potential discounts for teens in Minnesota

Impact on annual premium with good student and defensive driving discounts:

coins
$428 SAVED

Minnesota students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

male
Average premium for a 19-year-old male
car

$3,628 at home

graduation

$3,154 at school

$474 IN SAVINGS

female
Average premium for a 19-year-old female
car

$3,026 at home

graduation

$2,718 at school

$308 IN SAVINGS

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.

Age savings for Minnesota service members

male
25 years$1,382
50 years$1,037
female
25 years$1,342
50 years$1,092

$405 Saved
$250 Saved

Median auto insurance for service members: $1,109

Who Needs Car Insurance in Minnesota?

All vehicle owners, except the handful who choose to post a substantial bond (See Alternatives to Insurance, below). State law requires drivers to carry 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 a vehicle
  • Taking a driving test
  • Renewing a vehicle registration

Requested by a law enforcement officer during a traffic stop or after an accident

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 coverage, the insurance company's name, the expiration date of the policy, 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:

Personal Injury Protection (PIP), also known as "no-fault" insurance

  • $40,000 per person, per accident.
  • $20,000 for medical expenses for any one person.
  • $20,000 for income loss, funeral expenses, and other non-medical costs.

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.

Is this package enough to cover the costs of a catastrophic accident? See: "How Much Car Insurance Coverage Do I Need?" below.

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, of course, 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.

Car Insurance Requirements in MN: How Much Coverage Do You Need?

What percentage of drivers in Minnesota lack vehicle insurance?

11.5%

National average: 13%

Source:

Insurance Information Institute.

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 coverage (PIP) only applies to the expenses from an injury in an accident (e.g. medical costs, wage loss, and funeral 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 per injury and $300,000 per accident, according to the Insurance Information Institute. For more on the different types of insurance coverage and possible discounts you may qualify for, see MoneyGeek guide to car insurance on the topic.


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Sources