Cheapest Car Insurance for Low-Income Drivers in Minnesota (2024)


The cheapest car insurance for individual drivers with low income and poor credit in Minnesota is West Bend Mutual at $43 per month. For families with low income, the most affordable option is Auto-Owners at $50 per month.

Minnesota does not have state-backed car insurance programs for low-income families and individuals. Therefore, finding the provider with the most affordable rate is one option to manage costs. Additionally, there are ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, it has downsides. For example, in an at-fault accident, it may not cover all the damages, leaving you with out-of-pocket expenses.

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Cheapest for Individuals With Low Income

West Bend Mutual is the cheapest car insurance provider for individual drivers with low-income and poor credit history in Minnesota with an average minimum coverage premium of $43 per month or $513 per year.

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Cheapest for Families With Low Income

Auto-Owners is the cheapest car insurance provider for families with low-income in Minnesota with an average minimum coverage premium of $50 per month or $597 per year.

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Cheapest for Senior Drivers With Low Income

West Bend Mutual is the cheapest car insurance provider for seniors with low-income and poor credit score in Minnesota with an average minimum coverage premium of $45 per month or $541 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the Minnesota Department of Insurance to get the cheapest average costs for low-income drivers of Minnesota.

33,288Quotes Analyzed
 
15Companies Compared
 
61ZIP Codes

Does Minnesota Offer Low-Income Insurance?

Like most other states, car insurance companies in Minnesota don't offer income-based assistance programs. Income isn't a factor when calculating your car insurance rates in Minnesota, but other factors — including your age and credit history — are important.

The best way to find the cheapest rates is to compare quotes from several insurance companies. A minimum coverage policy is often the most inexpensive way to stay legal on the road, but it can leave you vulnerable to a substantial loss from an at-fault accident. If you rarely drive, look into pay-per-mile insurance, which could be a great way to save.

Minimum Car Insurance Requirements in Minnesota

To legally operate a vehicle in the Land of 10,000 Lakes, you're required to carry a minimum car insurance policy that includes specific coverage amounts. Here's what you need:

  • $30,000 for bodily injury liability per person
  • $60,000 for bodily injury liability per accident
  • $10,000 for property damage liability per accident
  • $25,000 uninsured motorist bodily injury per person
  • $50,000 uninsured motorist bodily injury per accident
  • $40,000 personal injury protection (PIP) per person

While a liability-only car insurance policy covers expenses for the other driver in an accident you cause, it doesn't cover your own vehicle's damages. To protect your car from a range of risks, including theft and natural disasters, you'd need a full coverage car insurance policy with collision and comprehensive coverages.

In Minnesota, where harsh winters can lead to increased accidents and vehicle damage, opting for full coverage might be wise. Knowing the risks and benefits of each policy will help you decide what's best for your situation. For instance, if you frequently drive in areas prone to wildlife crossings or have a car loan, full coverage offers peace of mind beyond the minimum state requirements.

Cheapest Car Insurance for Individuals With Low Income in Minnesota

Credit history is vital for low-income drivers because it can significantly impact car insurance premiums in Minnesota. A poor credit record often signals higher risk to insurers, leading to increased premiums. Understanding how credit affects insurance rates is crucial for finding affordable coverage.

The cheapest car insurance companies for drivers with low-income and poor credit record in Minnesota are:

  • West Bend Mutual: $513 per year, $43 per month
  • Westfield: $686 per year, $57 per month

Drivers with good insurance credit, you can get the cheapest car insurance in Minnesota from:

  • Westfield: $316 per year, $26 per month
  • West Bend Mutual: $391 per year, $33 per month

Obtaining state minimum coverage is essential because driving without insurance is illegal. In Minnesota, being uninsured can lead to suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000, among other penalties.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
West Bend Mutual$513$43
Westfield$686$57
Farmers Union Insurance$713$59
Iowa Farm Bureau$994$83
American Family$1,017$85
AAA$1,125$94
Nationwide$1,207$101
Allstate$1,216$101
Western National$1,247$104
Country Financial$1,294$108
GEICO$1,425$119
Auto-Owners Insurance Co$1,442$120
State Farm$1,492$124
Travelers$2,485$207
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Cheapest Car Insurance for Families With Low Income in Minnesota

While your income doesn't directly impact car insurance rates, your family situation does. In Minnesota, single parents with a teen see an annual premium of $942, which is $345 more than what married couples with a teen pay, at $597 per year. The difference is quite stark, making it clear that family status plays a role in determining premiums.

The most affordable car insurance companies for married couples with a teen in Minnesota are:

  • Auto-Owners: $597 per year; $50 per month
  • State Farm: $772 per year; $64 per month

For single parents with a teen, the cheapest options are:

  • Auto-Owners: $942 per year; $79 per month
  • State Farm: $1,250 per year; $104 per month

Married couples with a teen can save on premiums compared to single parents. This could be due to insurers viewing married couples as more stable and less risky. Regardless of your family status, maintaining a good credit score is key to securing more affordable car insurance rates.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
Auto-Owners Insurance Co$597$50
State Farm$772$64
Nationwide$853$71
Travelers$941$78
Allstate$946$79
GEICO$1,021$85

Cheapest Car Insurance for Seniors With Low Income in Minnesota

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially if you maintain a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

  • West Bend Mutual: $45 per month, $541 per year
  • Farmers Union Insurance: $52 per month, $624 per year

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Minnesota, there are specific laws and guidelines for seniors getting car insurance to ensure fair treatment.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
West Bend Mutual$541$45
Farmers Union Insurance$624$52
Westfield$788$66
Iowa Farm Bureau$881$73
American Family$1,025$85
AAA$1,045$87
Nationwide$1,137$95
Western National$1,233$103
GEICO$1,243$104
State Farm$1,319$110
Country Financial$1,332$111
Allstate$1,338$111
Auto-Owners Insurance Co$1,356$113
Travelers$2,204$184
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

What Factors Affect Car Insurance Rates in Minnesota?

Car insurance rates in Minnesota are influenced by various factors. Although your income doesn't directly affect your rates, it can impact your credit score. A poor credit record can lead to higher rates, while a good credit record can result in lower rates. Understanding the factors that contribute to car insurance rates can help you make informed decisions in choosing the best car insurance for you.

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    Driving record

    At-fault accidents and moving violations increase rates for drivers.

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    Age and gender

    Younger drivers and male drivers often face higher rates.

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    Credit history

    A poor credit history can lead to higher insurance rates.

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    Location

    Living in urban areas with high traffic can increase rates.

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    Vehicle type

    Luxury and sports cars usually cost more to insure.

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    Coverage levels

    Higher coverage levels result in higher premiums.

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    Insurance company

    Different insurers offer various discounts and have unique underwriting methodologies.

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    Claims history

    Filing a claim frequently can lead to higher rates.

How to Save on Car Insurance in Minnesota

There are several strategies to help you find affordable car insurance in Minnesota. Whether you qualify for state-sponsored programs for low-income drivers or not, there are ways to save on your premiums. Here are some tips to lower your car insurance premiums:

  1. 1
    Choose minimum coverage

    Opting for a state-mandated minimum coverage can help you save yet meet legal requirements to drive. This is an efficient way to reduce premiums while remaining compliant.

  2. 2
    Comparison shop

    By getting quotes from multiple insurers to compare rates and discounts, you can find the best deals. Shopping locally might also lead to the lowest rates in Minnesota.

  3. 3
    Look for discounts

    Insurance companies offer various discounts for factors like good students, safe driving records, military service or bundling your auto insurance with other policies.

  4. 4
    Increase your deductible

    If you opt for collision or comprehensive coverage, choosing a higher car insurance deductible can reduce your premium. Ensure you can afford the deductible in case of an accident.

  5. 5
    Consider pay-per-mile insurance

    For low-mileage drivers in Minnesota, pay-per-mile insurance is a cost-effective option. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

  6. 6
    Bundle your policies

    Bundling other insurance needs like homeowners or renters insurance with your auto policy can lead to discounts. The best home and auto bundles can save you around $496 each year.

  7. 7
    Drive a cheaper car

    Your car's make, model, and year significantly impact your insurance costs. Driving the cheapest cars to insure can save you hundreds of dollars in insurance costs each year.

FAQ: Low-Income Car Insurance in Minnesota

Finding affordable car insurance for low-income drivers in Minnesota can be tough. Get answers to some of the most commonly asked questions about low-income car insurance in Minnesota.

Does Minnesota have a state-backed low-income car insurance program?

How can low-income families get affordable car insurance in Minnesota?

Does your income affect the cost of car insurance in Minnesota?

What are the benefits of usage-based telematics programs for drivers with low-income in Minnesota?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.