Cheap Minnesota Low-Income Car Insurance for Families and Individuals

There is no government car insurance program in Minnesota that assists low-income drivers. MoneyGeek compared the state's car insurance companies to help low-income drivers save money on car insurance. According to our research, AAA provides the cheapest auto insurance in Minnesota for low-income families and individuals.

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Last Updated: 11/25/2022
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When determining the cost of car insurance in Minnesota, your income is not a factor. The two biggest factors that decide car insurance premiums in Minnesota are whether or not you have a teen driver on your policy and your credit score.

MoneyGeek calculated the cheapest auto insurance options for low-income individuals and families with poor or good credit scores in Minnesota.

Is There Car Insurance for Low-Income Families and Individuals in Minnesota?

Minnesota doesn’t offer a government program to help low-income families and individuals with car insurance costs. Despite the car insurance requirement, 9.9% of Minnesota drivers are uninsured. That may be because they can’t afford car insurance.

For low-income car insurance in Minnesota, a traditional minimum coverage policy is most likely your best bet. Drivers who don’t travel frequently may consider pay-per-mile insurance coverage, a cost-effective option for low-income motorists in Minnesota.

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Does Minnesota Have a Government Program to Support Low-Income Drivers with Insurance?

In Minnesota, there is no government-funded assistance program to support low-income drivers. The best way to find low-cost car insurance is to compare quotes from several companies. For low-income drivers in Minnesota looking to save money on their premiums, MoneyGeek has uncovered the cheapest car insurance companies for low-income individuals and families in Minnesota.

The Cheapest Minnesota Car Insurance Companies for Low-Income Drivers

When determining your auto insurance premium in Minnesota, car insurance companies can't take income into account, but other criteria that may relate to income are fair game, such as age and credit score.

A minimum coverage policy is the cheapest auto insurance available. MoneyGeek found AAA offers the cheapest car insurance for low-income families and individuals in Minnesota of varying types.

MoneyGeek also looked into the cheapest minimum auto insurance for low-income families and individuals in Minnesota based on the driver's age.

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The Cheapest Minnesota Car Insurance Companies for Low-Income Families

While income has no bearing on car insurance costs, your family’s credit score could have a significant impact on your premium. With a poor credit score versus a good credit score, rates in Minnesota differed by an average of $2,269 per year for MoneyGeek’s sample single parent. For a couple with a child, they differed by around $2,802 per year with a poor credit score versus a good credit score.

On average, the two cheapest insurers for a couple with a kid and a poor credit score in Minnesota are:

  • AAA: $4,063 per year
  • Farmers: $4,481 per year

For a military family couple with a kid, USAA is an inexpensive option at around $3,362 annually.

On average, the cheapest auto insurance companies in Minnesota for single parents with poor credit ratings are:

  • AAA: $2,857 per year
  • State Farm: $3,527 per year

If you’re a low-income single parent with a background in the military and have a poor credit score, you may be eligible for USAA’s roughly $2,751 rate per year.

Just because you're low-income doesn't imply you have a bad credit score. The chart below shows the most cost-effective car insurance solutions in Minnesota for various profiles.

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Single parent w/ a kid

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $1,393
  • AAA
    $1,446
  • State Farm
    $1,786
  • GEICO
    $1,793
  • Auto-Owners Insurance Co
    $1,889
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The Cheapest Minnesota Car Insurance Companies for Low-Income Individuals

Rates in Minnesota varied by around $714 per year for MoneyGeek’s average 40-year-old driver if they had a good credit score versus a poor credit score.

On average, the following are the two cheapest companies for low-income Minnesota drivers with poor credit:

  • AAA: $1,036 per year
  • Farmers: $1,142 per year

USAA offers the cheapest policy for low-income 40-year-old drivers with poor credit and a military background, roughly $857 per year.

Even if you have a low income, that doesn't mean you have a poor credit score. AAA costs around $524 per year for good credit drivers, Farmers roughly $578, and USAA about $434.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $434
  • AAA
    $524
  • Farmers
    $578
  • State Farm
    $624
  • GEICO
    $657

The Cheapest Minnesota Car Insurance Companies for Low-Income Students

Young student drivers in Minnesota face higher car insurance premiums due to their lack of driving experience. Many college students are low-income, and car insurance costs may take a considerable percentage of their income, despite the fact that they don’t pay more because of their low income.

On average, the cheapest car insurance companies in Minnesota for student drivers with poor credit are:

  • AAA: $2,269 per year
  • Farmers: $2,502 per year

USAA car insurance is the cheapest for student drivers at around $1,877 per year, but coverage is only available to eligible young drivers from military families.

Even if you have a low income, you may not have poor credit. With good credit, you may pay around $1,149 per year with AAA, about $1,267 with Farmers, and roughly $950 with USAA if eligible.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $950
  • AAA
    $1,149
  • Farmers
    $1,267
  • State Farm
    $1,366
  • GEICO
    $1,438

The Cheapest Minnesota Car Insurance Companies for Low-Income Seniors

Senior drivers' car insurance premiums are somewhat higher than middle-aged drivers. In Minnesota, car insurance for low-income seniors could be even more expensive depending on their credit score. Rates in Minnesota varied by around $753 per year for MoneyGeek’s sample 70-year-old driver, whether they had a poor credit score or a good credit score.

In Minnesota, the car insurance companies that average the cheapest rates for low-income seniors with poor credit are:

  • AAA: $1,105 per year
  • State Farm: $1,108 per year

For senior drivers with poor credit, USAA offers auto insurance for around $984 per year, but the policy is only available to active or former military.

You don't necessarily have a bad credit score because you’re a low-income driver. The average rates for senior drivers with a good credit score annually are AAA at $559; State Farm at $561; and USAA at $498.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $498
  • AAA
    $559
  • State Farm
    $561
  • GEICO
    $616
  • Farmers
    $665

Does Income Affect Car Insurance Rates in Minnesota?

When calculating your auto insurance premiums, insurance companies can’t consider your income. Other criteria that may have a link to income, on the other hand, might affect your rates.

For example, younger people pay higher rates since insurance companies believe they are more likely to have an accident due to inexperience, and they may have a lower income because they are just starting their careers.

MoneyGeek identified the key factors that may be associated with low income and how they affect car insurance rates in Minnesota. They are:

  • Adding a teen driver.
  • Credit score.
  • Age of driver.

Insurance companies also consider your driving record and the model of your car.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    Adding a teen driver makes rates as much as 3x more expensive.

  • Credit Score

    A driver with a poor credit score might pay 2.4x more than one with a good credit score.

  • Age of Driver

    In Minnesota, rates can be 2.2x higher for young drivers versus middle-aged drivers.

  • Driving Record

    A violation on your record could result in paying 2x more than a person without a ticket, accident, etc.

  • Car Model

    Depending on the model of your car, insurance could be twice as expensive.

Frequently Asked Questions About Low-Income Car Insurance in Minnesota

You may have questions about obtaining low-income car insurance in Minnesota. MoneyGeek answers frequently asked questions about low-income insurance in Minnesota for families and individuals below.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Minnesota using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Minnesota.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.