The Cheapest Car Insurance in Minnesota for 2022
AAA provides the cheapest car insurance in Minnesota for a minimum coverage policy at an average of $452 per year.
MoneyGeek gathered vehicle insurance quotes in Minnesota to find the most affordable premiums for various driver profiles. State Farm provides the lowest rates for young and senior drivers, as well as those with tickets and DUIs, even though AAA is the cheapest on average. We found that by simply comparing rates, drivers may save roughly $736 on their premiums.
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The Cheapest Car Insurance in Minnesota
MoneyGeek broke down the cheapest insurers in Minnesota by city for people who want customized rates based on where they live in the state. MoneyGeek also looked at the best car insurance companies in Minnesota to find the ones with the perfect balance of customer service and affordability.
Why Trust MoneyGeek? Minnesota car insurance rates in this study are based on our analysis of data and information from the Minnesota Department of Insurance and Quadrant Information Services.
These rates were updated in August 2022 to reflect how car insurance rates in Minnesota have changed up to this month.
Cheapest Minimum Liability Car Insurance in Minnesota
In Minnesota, the cheapest coverage is liability-only insurance that only meets the state's minimum requirements. This coverage only covers the costs associated with injuries and damages you cause to others in an accident for which you are at fault. It protects you against claims arising from injuries and property damage.
On average, the cheapest car insurance in Minnesota is offered by:
- AAA: $452 per year
- Farmers: $498 per year
With an annual rate of $374, USAA is the cheapest auto insurance carrier in Minnesota. However, it is only available to military families. Progressive's minimum coverage is the most expensive at an average of $959 per year.
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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Cheapest Full Coverage Car Insurance in Minnesota
Insurance policies with higher liability limits and comprehensive and collision coverage are ideal if you want complete protection against accidents and other damage. Since it provides both liability insurance and full coverage, full coverage insurance is more expensive than the state minimum insurance.
On average, the cheapest full coverage insurance providers in Minnesota are:
- Farmers: $834 per year
- State Farm: $854 per year
However, the most affordable option, USAA, is only available to military families and veterans. It costs an average of $703 per year. Progressive is the most expensive for full coverage insurance, with an average premium of $1,439 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.
How to Compare Cheap Minnesota Car Insurance Quotes Online
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.
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Cheapest Car Insurance in Minnesota for Young Drivers
Young drivers are generally more likely to submit insurance claims. They are regarded as a high risk by insurers, which results in their having to pay higher premiums. While car insurance for a 16-year-old driver in Minnesota averages $2,597 per year, a 25-year-old driver only pays $1,378 for a comparable policy.
MoneyGeek looked into the policies available in Minnesota for drivers between the ages of 16 and 25 and found that State Farm offers the cheapest insurance for young drivers between the ages of 16 and 24, while GEICO is the best option for 25-year-olds.
ANNUAL CAR INSURANCE IN MINNESOTA FOR YOUNG DRIVERS
There are obvious disparities between the average rates for drivers of different ages. State Farm offers the lowest rates for 16-year-olds in Minnesota, at an average of $2,039 per year, while the cheapest insurance company for 25-year-olds is GEICO, at $961 per year. This is a difference of around $1,078.
To keep costs down, ask your insurance provider for student discounts. This can help young drivers save on their insurance premiums.
Cheapest Car Insurance in Minnesota for Seniors
The cost of auto insurance for seniors is slightly more than that of the average adult. Senior drivers in Minnesota pay an average of $1,076 annually for auto insurance, compared to $1,064 for the average adult driver.
In Minnesota, the cheapest car insurance carriers for senior drivers needing full coverage insurance are, on average:
- State Farm: $784 per year
- AAA: $898 per year
Only former and current military people and their families can get USAA's plans, the cheapest at $759 per year. At roughly $1,613 annually, Progressive has the most expensive rates.
CHEAPEST CAR INSURANCE RATES FOR SENIORS
Even seniors with impeccable driving histories may see their car insurance premiums climb over time since insurance prices increase with age. In Minnesota, senior drivers spend around $1,076 annually on insurance. Despite the fact that this average is just $12 more than what the average adult driver spends, the discrepancy might be higher depending on your personal profile.
While expenses will inevitably rise as people age, seniors might be able to save money by comparing quotes from multiple insurance companies. This could result in senior drivers in Minnesota saving $829 annually.
Cheapest Car Insurance for Drivers With Tickets in Minnesota
Drivers in Minnesota who have even minor traffic offenses on their records generally pay higher premiums for car insurance. Drivers with speeding tickets pay an average of $1,384 in annual vehicle insurance premiums, while those without fines pay an average of $1,064 annually.
In Minnesota, the cheapest average full coverage car insurance companies for drivers with speeding tickets are:
- State Farm: $938 per year
- American Family: $940 per year
Even though USAA's policy is the cheapest at $834 a year, only active-duty and retired military personnel and their families are eligible for their policies. Rates can be as high as $1,774 if you go with Progressive, the most expensive company for those with tickets.
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.
Cheapest Car Insurance for Drivers With a DUI in Minnesota
Minnesota drivers with DUIs pay an average of $2,126 in annual premiums, while those with a clean record pay only $1,064 annually.
Drivers with a DUI can find the cheapest average full coverage car insurance from the following companies:
- State Farm: $938 per year
- American Family: $940 per year
The most expensive insurer for DUI drivers in Minnesota is AAA, at approximately $4,537 annually.
AVERAGE CAR INSURANCE RATES WITH A DUI
DUI convictions in Minnesota are punishable by fines, jail time or even license suspension. In addition, you can expect to pay higher insurance premiums for several years.
If you've been convicted of a DUI in Minnesota, your best bet is to search around for the best deals. There is a roughly $3,599 price difference between the cheapest and the most expensive average annual premiums in the state.
Cheapest in Minnesota for Drivers With an At-Fault Accident
Your driving record has a big impact on the cost of car insurance in Minnesota. When compared to drivers with a clean driving record who pay an average of $1,064 per year for car insurance, those who have had an at-fault accident pay an average of $1,568 per year.
The following companies offer the cheapest average car insurance in Minnesota for those with an at-fault accident history:
- American Family: $940 per year
- State Farm: $1,022 per year
USAA offers the second most affordable rates for military drivers and costs roughly $990 per year. On the other hand, Progressive, the most costly insurance carrier, quotes around $2,237 per year.
CHEAPEST CAR INSURANCE WITH AN AT-FAULT ACCIDENT
Cheapest Car Insurance in Minnesota for Drivers With Bad Credit
According to MoneyGeek's research, Minnesota drivers with bad credit spend around $2,466 in annual premiums. This is higher than the average annual premium of $1,064 for drivers with good credit.
On average, drivers with bad credit can find the most affordable full coverage auto insurance in Minnesota from:
- GEICO: $1,542 per year
- American Family: $1,636 per year
With an average premium of $1,448 per year, USAA offers the cheapest policies for drivers with bad credit, but only if they belong to military families. AAA is the most expensive option, with rates averaging $2,356 annually.
CHEAPEST CAR INSURANCE RATES FOR DRIVERS WITH BAD CREDIT
Having a poor credit score can negatively affect your insurance premiums. On average, Minnesota drivers with poor credit pay $1,402 more than those with good credit.
To get better rates if you have bad credit, shopping around for coverage is important. By doing so, you could save up to $814 annually.
In addition, it’s important to improve your credit score. This will help you get lower premiums and help you achieve other financial goals.
Cheapest Car Insurance in Minnesota for Military Drivers
Veterans and active military personnel and their families can get the cheapest car insurance in Minnesota through USAA. Additionally, of the 11 insurers we compared, it is the cheapest. Compared to AAA, the cheapest widely-available insurer, USAA's policies cost about $78 less per year, according to MoneyGeek's analysis of car insurance premiums.
- Average rate: $374 per year
- Ranks 1st out of 11 insurers
Although USAA already provides the cheapest policies, its discounts provide even more ways to save. On top of its bundling and multi-car discounts, USAA also offers discounts for defensive driving, taking an approved driver safety course and having a vehicle that is three years old or newer. You can also save up to 60% in insurance costs if you have secure storage for your car.
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
Car Insurance in Minnesota: What You Need to Know
Drivers in Minnesota must carry more insurance than in most other states, and driving without adequate insurance can result in fines, penalties or even jail time.
Minnesota Insurance Requirements
In accordance with Minnesota's auto insurance laws, drivers must have personal injury protection (PIP), uninsured/underinsured motorist protection (UM and UIM), along with the state minimum liability coverage of 30/60/10. This means that there must be at least $30,000 per person in bodily injury coverage, with up to $60,000 per accident, $10,000 in property damage coverage and $40,000 of personal injury protection. If they are sued after an accident, this could save them from having to pay out-of-pocket expenses. Experts recommend considering a policy covering $100,000 per injury and $300,000 per accident.
However, with an expensive vehicle, you may want to consider getting collision and comprehensive insurance. Comprehensive insurance pays for non-collision damages caused by fire, theft and natural disasters like floods and hurricanes, whereas collision coverage only covers collisions with other vehicles and contact with stationary objects like telephone poles or trees.
Drivers of Minnesota have other options besides buying car insurance, as long as they can demonstrate "proof of financial stability." This can be done by establishing that the driver has sufficient savings or equity that can fulfill the state's minimum liability standards (through options like cash deposit or surety bond). If a catastrophic event causes more damage than your security deposit or bond can cover, you will be liable for the remaining costs.
If you don't qualify for insurance due to a poor driving history, you can still obtain insurance through the Minnesota Automobile Insurance Plan. Before applying for these high-risk insurance plans, applicants must be able to demonstrate that they have been denied insurance for at least 60 days.
FAQs About Car Insurance in Minnesota
To help consumers make an informed purchasing decision, MoneyGeek answered the following frequently asked questions about car insurance in Minnesota.
Expert Advice on Finding Cheap Car Insurance in Minnesota
To help you find credible and accurate insight on car insurance in Minnesota, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- What steps can drivers in Minnesota take to find affordable car insurance?
Financial Planner at Abundo Wealth
About the Author
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