Cheapest Car Insurance in Minnesota (June 2024)

Westfield offers the cheapest minimum coverage car insurance policies in Minnesota. American Family, AAA and West Bend Mutual are also great options, depending on your driver profile.

To help you compare insurers for cost and service quality, MoneyGeek ranked the top insurance companies in Minnesota.

The following companies offer the cheapest auto insurance policies for minimum coverage in Minnesota:

• Westfield: $316 per year
• AAA: $423 per year

GEICO has the most expensive minimum coverage auto insurance in Minnesota, with an average annual cost of $839.

All drivers in Minnesota are required by law to have bodily injury liability, property damage liability, uninsured/underinsured motorist coverage and personal injury protection.

In Minnesota, a minimum coverage car insurance policy only covers third-party damages, property damage and damages from uninsured and underinsured drivers. For added protection for your vehicle, consider purchasing a full coverage policy that includes collision and comprehensive coverage.

The following companies offer the cheapest full coverage auto insurance in Minnesota:

• AAA: $860 per year
• American Family: $882 per year

At $1,816 per year, GEICO is the most expensive option in Minnesota for a full coverage car insurance policy.

With AAA, adding comprehensive and collision coverage to your policy raises your annual rate by around $437. Full coverage auto insurance provides additional financial security against both on- and off-road mishaps if you need to make a claim for your vehicle.

Depending on how much car insurance you need, your rate will vary. MoneyGeek's full coverage sample policy includes the following coverages and limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident
• Comprehensive and collision insurance, each with a $1,000 deductible

To reduce your rate, drop comprehensive and collision coverage, raise your deductible for comprehensive, collision or both, or lower your liability limits. With less coverage, though, you may be vulnerable to a substantial financial loss if you’re found at fault in an accident.

Insurers typically offer online quotes, but it can take up to 15 minutes to provide the personal information required. This can add up when comparing rates for multiple lenders.

MoneyGeek’s auto insurance calculator makes it easier for you to get a quick quote for affordable car insurance. Simply input your age, driving history and gender from the selections below to get started.

Age is one of the biggest factors affecting car insurance rates in Minnesota. MoneyGeek found that Nationwide, American Family, and AAA offer the cheapest options, depending on what age group you and your family belong to.

In Minnesota, the following companies offer the cheapest insurance policies for teens added to a family policy:

• Nationwide: $1,742 per year for female teens and $1,850 per year for male teens
• State Farm: $1,880 for female teens and $2,303 per year for male teens

Auto-Owners is the most expensive, with an average cost of $2,794 for boys and $2,599 for girls.

Car insurance rates for teens significantly decrease as they age, with 19-year-olds getting the cheapest offers from providers. A 19-year-old male driver in Minnesota can get the lowest car insurance rates from Nationwide ($1,628).

It costs significantly less to add a 16-year-old driver to a family policy, which only costs around $2,530 than for a 16-year-old driver to purchase individual insurance costing approximately $4,682 per year. Individual coverage for a 16-year-old male driver in Minnesota costs $2,152 more than a family policy with a 16-year-old male driver. And if a teen is under 18, they must have a parent or guardian as a co-signer to legally get auto insurance.

Many auto insurance providers offer discounts to teen drivers — like good student and student away at school discounts. For instance, students who earn at least a B average or make the dean's list may qualify for a discount of up to 15% from GEICO.

Drivers in their 20s can obtain the cheapest full coverage car insurance from the following companies in Minnesota:

• American Family: $892 per year
• Iowa Farm Bureau: $1,145 per year

GEICO is the most expensive car insurance provider for drivers in their 20s, with an average annual premium cost of $2,175. In Minnesota, 25-year-old drivers pay an average of $298 more per year than 40-year-olds.

The following insurance companies offer the lowest rates for senior drivers in Minnesota:

• AAA: $782 per year
• American Family: $820 per year

GEICO has the most expensive auto insurance premium for seniors in Minnesota, with an average yearly rate of $1,566.

Compared with middle-aged drivers, older drivers in Minnesota pay an average of $104 less per year for full coverage auto insurance. However, as drivers approach their 70s and 80s, rates typically increase.

Senior drivers can receive additional auto insurance discounts in addition to senior-specific discounts. Discounts for senior drivers are offered by several providers, including Allstate, Farmers and GEICO.

Elderly drivers can also obtain the best insurance by comparing insurers’ rates, as age is simply one of many criteria that impacts the cost of car insurance.

For Minnesota drivers with sports cars, an at-fault accident or DWI history, American Family offers the cheapest rates. American Family also has the most affordable rates for drivers with speeding tickets.

Car insurance companies typically charge more to risky drivers. You may be able to reduce the cost of your insurance by enrolling in state-approved driving courses and regularly having your record verified.

West Bend Mutual is the most affordable car insurance provider for people with low credit scores.

Drivers in Minnesota with a speeding ticket will get the best rates from the following insurance companies:

• American Family: $1,050 per year
• Iowa Farm Bureau: $1,153 per year

GEICO offers the most expensive car insurance for drivers with a speeding ticket, at $2,120 per year. A speeding ticket in Minnesota can increase the cost of your insurance by $273.

The following insurance providers offer the cheapest option for Minnesotan drivers with an at-fault accident on their records:

• American Family: $882 per year
• AAA: $1,224 per year

GEICO offers the most expensive auto insurance in Minnesota at $3,220 per year. Having an at-fault accident on your driving record may increase your rate by $482 per year.

Drivers with a DWI (Minnesota does not use DUI) offense can get the cheapest car insurance in Minnesota from the following companies:

• American Family: $1,050 per year
• State Farm: $1,360 per year

At $5,928 per year, GEICO is the most expensive provider. In Minnesota, a DWI offense may increase the cost of your car insurance by $1,025 per year.

The following companies offer the cheapest car insurance to drivers in Minnesota with poor credit:

• West Bend Mutual: $1,566 per year
• American Family: $1,656 per year

With an average yearly cost of $3,561, the most expensive insurer is Western National.

One of the most important factors insurers evaluate when determining your premium is your credit-based insurance score. Drivers with bad credit in Minnesota will pay approximately $1,243 more per year than those with good credit.

Drivers with poor credit are more likely to file claims, according to actuarial data. Because of this, insurers typically charge them more for car insurance. Though this practice is illegal in some states, it’s permitted in Minnesota.

You can gradually reduce the cost of your insurance by improving your credit score, but you can also save money by choosing a company that offers discounts for safety features or bundling.

The following companies offer the cheapest rates for sports car drivers in Minnesota:

• American Family: $821 per year
• Travelers: $992 per year

GEICO offers the most expensive car insurance in Minnesota for sports car drivers, with an average annual cost of $2,233.

Sports cars typically cost more to insure than conventional cars because of their high repair and replacement expenses. In Minnesota, it costs $115 more to insure a sports car than a Toyota Camry LE.

In this study, the rates for a sports car were obtained using a Ford Mustang as our sample model. Your rate may vary based on your car's model. Electric vehicles, sports cars, and luxury vehicles usually cost more to insure than other model types.

For the lowest cost, veterans and active-duty military service members in Minnesota can purchase auto insurance from AAA at an average of $860 per year.

USAA also has inexpensive auto insurance plans, with an average annual premium cost of $1,017. Active-duty military members, veterans and their families have access to its plans in all 50 states and Washington, D.C.

Another option for savings as a military community member is GEICO, which offers specific discounts for them.

One of the main factors impacting the cost of car insurance is the city in which you reside. Residents that live in neighborhoods with greater rates of theft, crashes and vandalism are more likely to file insurance claims and incur higher costs.

For instance, residents in Rochester can purchase the cheapest insurance from AAA at an average cost of $768 per year, whereas residents in Minneapolis will pay $1,070 for insurance from the same provider.

Explore our list of Minnesota cities below for a comparison of average vehicle insurance prices by location.

Minnesota drivers are required to carry liability insurance, personal injury protection (PIP) and uninsured and underinsured motorist coverage. More information on what you should know about auto insurance in Minnesota is provided below.

In accordance with Minnesota's auto insurance laws, drivers must carry a minimum amount of liability insurance as well as PIP and uninsured and underinsured motorist coverage.

Drivers who have a history of serious violations in Minnesota, such as a DWI or driving without a license, are required to have their insurer submit a SR-22 form to the state's Driver and Vehicle Services department.

MoneyGeek advises purchasing bodily injury liability insurance with minimum levels of $100,000 per person and $300,000 per accident and raising property damage liability to $100,000.

If you lease or finance your vehicle, you may be required to carry comprehensive and collision coverage. Collision will cover repairs if your car collides with another vehicle or an object, like a tree or fence. It also covers rollover accidents and pothole damage. Comprehensive, also known as "other than collision," covers theft, vandalism, fire and weather-related damage, as well as animal strikes, like hitting a deer.

The Minnesota Automobile Insurance Plan accepts applications from Minnesotans who have recently been turned down for auto insurance on the free market. This network of insurers was created to help high-risk drivers obtain auto insurance coverage.

Companies or wealthy individuals may be eligible for automobile self-insurance in Minnesota. To qualify, drivers must meet numerous requirements, including owning at least 25 motor vehicles registered under the same name, having a minimum income of $5 million and more. When the Commissioner of Commerce is confident that you have the financial stability and administrative capabilities necessary to fulfill all obligations and responsibilities under the No-Fault Act, approval will be given.

It may be complicated to explore and compare auto insurance providers given the options. To learn more about auto insurance in Minnesota, read the answers to some frequently asked questions below.