What are my options for cheap car insurance in Minnesota?

Table of Contents Cheapest car insurance in MinnesotaWhat is the cost of car insurance in

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According to our cost estimates, full coverage car insurance in Minnesota can range from $943 a year to $1,709 or more depending on the provider and your driving history.

Read on to find out about the cheapest car insurance companies in Minnesota for different situations. When shopping around, compare car insurance quotes to find the best option for you.

In this article:

  • Cheapest car insurance in Minnesota

  • 5 car insurance options in Minnesota

  • Minnesota car insurance requirements

  • How to get car insurance in Minnesota

  • Frequently asked questions

  • Our methodology

Cheapest car insurance in Minnesota

We’ve compared insurance providers in Minnesota on cost and found that USAA tends to be the most affordable option with estimates of $943 a year. Our cost estimates apply to full coverage insurance for a 35-year-old driver with good credit and a clean driving record.

Since many factors can affect what you pay for car insurance in Minnesota, we’ll take a closer look at a few scenarios below.

Car Insurance Company

Estimated Annual Cost*

USAA

$943

Geico

$1,254

State Farm

$1,258

American Family

$1,351

Auto-Owners

$1,357

Travelers

$1,509

Farmers

$1,709

What is the cost of car insurance in Minnesota?

In 2018, drivers paid about $873 on average for car insurance in Minnesota, according to the National Association of Insurance Commissioners (NAIC). This makes Minnesota car insurance about 17% less expensive than the national average of $1,057 a year. The NAIC includes all types of car insurance policies, from minimum to full coverage, in its figures.

Cheapest Minnesota car insurance for young drivers

You’ll face higher rates for car insurance in Minnesota as a young driver. According to our full coverage rate estimates, drivers in their early 20s typically find the cheapest rates from USAA, State Farm and Geico.

Car Insurance Company

Estimated Annual Cost*

USAA

$1,411

State Farm

$1,679

Geico

$1,756

American Family

$1,784

Travelers

$1,811

Cheapest Minnesota car insurance for drivers with a speeding ticket

Minnesota drivers with a recent speeding ticket tend to find the cheapest rates from USAA. Our rate estimates show costs can be as low as $1,117 a year. After that, State Farm, Geico, American Family and Auto-Owners provide affordable car insurance rates.

Car Insurance Company

Estimated Annual Cost*

USAA

$1,117

State Farm

$1,371

Geico

$1,461

American Family

$1,691

Auto-Owners

$1,740

Cheapest Minnesota car insurance for drivers with a recent accident

USAA also typically provides the cheapest rates for drivers in Minnesota who have a recent accident on their record. We found that rates can be as low as $1,298 a year with USAA. Other affordable options include State Farm, Auto-Owners and American Family.

Car Insurance Company

Estimated Annual Cost*

USAA

$1,298

State Farm

$1,484

Auto-Owners

$1,720

American Family

$1,875

Travelers

$2,117

Cheapest Minnesota car insurance for drivers with poor credit

If you have a poor credit score in Minnesota, you may have to pay hundreds more for car insurance each year. In this case, Geico is generally the most affordable option, with full coverage rate estimates of $1,620 a year.

Car Insurance Company

Estimated Annual Cost*

Geico

$1,620

USAA

$2,169

American Family

$2,558

State Farm

$2,645

Progressive

$2,880

5 car insurance options in Minnesota

When shopping for car insurance, it’s important to look beyond providers’ prices and consider factors such as claims satisfaction and discount availability. Here is how we rated five car insurance companies in Minnesota.

Minnesota Car Insurance Companies

Overall Rating

Coverage Rating

Cost Rating

1. State Farm

8.6

8.5

8.0

2. USAA

9.1

8.5

9.5

3. Geico

9.1

8.5

8.5

4. Liberty Mutual

8.5

8.5

7.5

5. American Family

7.5

8.5

7.5

(Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in Minnesota.)

1. State Farm

State Farm car insurance in Minnesota offers low average rates and extensive coverage options, our research revealed. In Minnesota, you can get extras such as rental car reimbursement, travel expense coverage, roadside assistance and rideshare insurance. If you are a good driver with low average mileage, you can save money with the Drive Safe & SaveTM usage-based program. State Farm is also known for having a great student discount of 25%.

State Farm highlights include:

2. USAA

According to our rate estimates, USAA is the cheapest provider for many drivers in Minnesota. You can get USAA if you are a member of the military or a veteran, or if you have close family in the military. USAA’s usage-based program, SafePilot®, is available in Minnesota. You can save up to 30% with the program depending on your driving habits. USAA offers extras including accident forgiveness, roadside assistance and car replacement assistance.

USAA highlights include:

  • 12 discounts

  • A+ rating from the Better Business Bureau (BBB)

  • A++ financial rating from AM Best

  • High scores in the J.D. Power Auto Insurance Study, J.D. Power Insurance Shopping Study and J.D. Power Auto Claims Satisfaction Study

3. Geico

Geico is another good option for cheap car insurance in Minnesota. One thing that sets Geico apart from other providers is that it offers mechanical breakdown insurance, which is similar to an extended warranty for internal components of your vehicle. Geico also offers a range of extra coverage options, including roadside assistance and rental reimbursement.

Geico highlights include:

4. Liberty Mutual 

In our research, we found that Liberty Mutual was a great option for teens and military drivers in Minnesota. The company offers a number of extra coverage options, including a lifetime repair guarantee. With this option, Liberty Mutual makes arrangements for repairs and guarantees the repairs for as long as you own your vehicle. You can also get options such as gap insurance, original parts replacement and rental reimbursement from the company.

Liberty Mutual highlights include:

5. American Family

American Family is another affordable option for car insurance in Minnesota. Extra options from American Family include gap insurance, rental reimbursement and emergency roadside assistance. The company also offers rideshare insurance for drivers in the gig economy to stay protected on the road.

American Family highlights include:

Minnesota car insurance requirements

Minnesota’s minimum coverage requirements are a bit more extensive than some other state minimums. Minnesota law requires drivers to carry personal injury protection (PIP), liability, uninsured motorist coverage and underinsured motorist coverage. Here are the details according to the Minnesota Commerce Department:

  • PIP: $40,000

  • Bodily injury liability insurance:$30,000 per person and $60,000 per accident

  • Property damage liability:$10,000 per accident

  • Underinsured/uninsured motorist insurance:$25,000 per person and $50,000 per accident

Minnesota is a no-fault state. That means you pursue injury claims from your own company under your PIP coverage. This is also why the state requires PIP coverage for every driver. The no-fault system only applies to medical expenses from accidents, not property damage.

Be aware that Minnesota state requirements such as liability coverage won’t cover your vehicle if you are responsible for the accident. To get full coverage, consider adding collision insurance and comprehensive insurance to your policy.

How to get car insurance in Minnesota

In Minnesota, you can find affordable auto insurance coverage from many providers, including State Farm, USAA and Geico. We recommend comparing multiple car insurance quotes as you shop for coverage since each provider will treat your situation differently. 

Frequently asked questions

How much do you pay for car insurance in Minnesota?

According to the NAIC, drivers in Minnesota pay an average of about $873 a year for car insurance, which includes minimum and full-coverage policies. Our own rate estimates show that full-coverage insurance can range from $942 to $1,709 and above depending on the provider.

Why is Minnesota car insurance so expensive?

Car insurance in Minnesota is actually less expensive than in most other states. At an average cost of $873 a year, it’s cheaper than the national average of $1,057, according to the NAIC. If you are finding expensive car insurance rates in Minnesota, shop around until you find better prices.

What is a fair price for car insurance?

Since car insurance prices depend on many factors, the best way to know if you’re getting a fair price is to compare four or five companies when you shop. In Minnesota, a fair price for full coverage car insurance for a good driver ranges from $900 to $1,800 annually.

Our methodology

We created a comprehensive rating system to formulate our rankings of car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider.

Here are the factors our ratings take into account:

  • Reputation: Our research team considered market share, ratings from industry experts and years in business when giving this score.

  • Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.

  • Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.

  • Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.

  • Customer Experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

*Data accurate at time of publication.