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
The Cheapest and Best Car Insurance in Minnesota
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:
- USAA: $421 per year (serves only veterans, current military members and their families)
- AAA: $509 per year
The most expensive car insurance for minimum coverage is Progressive, costing $1,081 per year on average.
Average Cost for Minimun Liability Coverage
The car insurance prices are only averages and should be used as a guide to compare premiums between insurers.
These prices are only estimates based on rates for an average Minnesota driver and should not be used to compare insurance prices.
A minimum coverage policy in Minnesota is the cheapest available but only covers bodily injury and property damage liability insurance. To protect against the cost of damages to your own car or to increase the amount of liability coverage, you should consider purchasing a full coverage package.
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:
- USAA: $792 per year (serves only veterans, current military members and their families)
- Farmers: $940 per year
Progressive is the costliest company for full coverage, with average premiums of $1,622 per year.
Average Comprehensive and Collision Rates 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.
The Best Car Insurance Companies in Minnesota for 2021
Based on MoneyGeek’s research, the best car insurance companies in Minnesota for most drivers are:
- Best Overall: Auto-Owners
- Runner-up: GEICO
USAA received the highest score in Minnesota by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
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.
USAA only offers services to consumers with a military background. It is MoneyGeek’s top pick in Minnesota as it gets maximum scores on all the criteria considered in the study.
USAA ranks consistently as one of the best and most affordable insurance companies in the country. It’s the cheapest provider in Minnesota as well. If your parents also have a USAA policy, you may qualify for even more savings since the firm rewards drivers for savings if families stay loyal.Read MoneyGeek's USAA auto Insurance Review
Auto-Owners takes the second spot in MoneyGeek’s Minnesota ranking. This provider stands out with high scores for customer satisfaction and affordability.
Auto-Owners stands out for its excellent car insurance features. These include 24/7 road trouble service if you're stranded on the road due to a dead battery or flat tire. Your collision deductible will be waived if you're in an accident with another Auto-Owners policyholder. Optional coverages include protection from identity theft, rekeying locks and replacing your mobile phone.Read MoneyGeek's Auto-Owners Insurance Co auto Insurance Review
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
List of the Largest Insurance Companies in Minnesota
Based on market share, the three biggest insurers in Minnesota are State Farm, Progressive and American Family. Market share is determined by the number of premiums written by an insurance company divided by the total number of premiums written in the state. Buying your policy from an established provider doesn’t necessarily mean it’s the perfect policy for you, but larger companies will likely have the financial stability to pay your claims.
- CompanyMarket Share
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 with one insurer for $100,000 in bodily injury liability insurance, you should ensure to use the same number when comparing rates with other providers.
Input your ZIP code below to compare quotes or use MoneyGeek’s price data as a guide for which companies to evaluate.
In Minnesota, the cheapest companies for minimum coverage are USAA, AAA and Farmers. You can begin your search with these providers.
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
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.
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:
- USAA: $939 per year (serves only veterans, current military members and their families)
- State Farm: $1,057 per year
State Farm has lower premiums for those with a speeding ticket on their record than Farmers, the second cheapest company for drivers with a clean record.
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:
- USAA: $1,631 per year (serves only veterans, current military members and their families)
- GEICO: $1,737 per year
Farmers offer cheaper full coverage for the average driver with good credit, while GEICO’s rates are lower for those with poor credit.
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, therefore, 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:
- USAA: $855 per year (serves only veterans, current military members and their families)
- State Farm: $883 per year
Farmers offer lower full coverage rates for the average driver who is 40 years old, while State Farm’s prices are cheaper for senior drivers.
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.
Car insurance companies generally consider student drivers riskier to cover because of their inexperience. As a result, they charge them higher rates. In Minnesota, a student driver pays an average amount of $2,921 per year compared to $1,199 for the average driver.
The least expensive auto insurers in Minnesota for student drivers for full coverage are:
- State Farm: $2,076 per year
- Allstate: $2,799 per year
State Farm provides cheaper full coverage for student drivers, while Farmers’ costs are lower for the average non-student driver.
Average Car Insurance Rates for Students
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.
Insurance Rate Information for Military Drivers and Veterans
Average Rates for Minnesota service members
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
- $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.
Average Insurance Rate by City in Minnesota
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.
About the Author
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