Even within Minnesota, car insurance quotes from different companies can vary by thousands of dollars for the same policy. For the best car insurance rates, compare auto quotes from at least three companies near you. Type your ZIP code above for the top insurers active in your neighborhood to begin looking for cheap rates.
Cheapest minimum coverage auto insurance in Minnesota
The average cost of minimum coverage car insurance in Minnesota is $1,043 per year, or $87 per month.
For most people in Minnesota, State Farm offered the cheapest car insurance rates for minimum coverage auto insurance. On average, State Farm charged $424 per year for coverage, 59% cheaper than the statewide average. Drivers may also find affordable coverage from American Family, Geico and Allstate — though the average cost of coverage from these companies is $374 greater than State Farm's rates.
Some Minnesota drivers could find cheap car insurance from USAA. The insurer offers the most affordable rates in the state, on average, at $369 per year. However, USAA is only available to active and retired military members and their families.
Minimum coverage car insurance policies only meet Minnesota state law's minimum requirements. Unlike full coverage car insurance, minimum coverage doesn't include comprehensive and collision coverage.
And while you can purchase minimum coverage for cheaper, low coverage limits may put you at risk of insufficient protection following a car accident.
Cheapest company for full coverage: State Farm
The average cost of full-coverage car insurance in Minnesota is $2,109 per year, or $176 per month, though you could find more affordable rates by comparing quotes.
For most people, State Farm offers the cheapest full-coverage auto insurance in Minnesota. The insurer's rates are 40% more affordable than average — a difference of $845 per year.
Drivers may also find cheap full coverage ratesfrom Auto-Owners and American Family. The average cost of coverage from these two insurers is $1,652 per year, which is $457 cheaper than the statewide mean.
Cheap car insurance for drivers with prior incidents
The average cost of full-coverage car insurance for drivers in Minnesota is typically much more expensive if they've been involved in an at-fault crash, received citations for DUIs or committed a violation. Below, ValuePenguin lists the cheapest full-coverage options in Minnesota for drivers with different driving histories. In each case, State Farm is the cheapest option for most people.
Cheapest for drivers with an accident: State Farm
Having one at-fault crash on their record can cause a driver to see significantly higher rates than normal. After an accident, the average cost of coverage in Minnesota increases by $1,138 per year, on average. However, State Farm still offers affordable rates to drivers with an accident. The insurer charges 54% less for coverage than the statewide average.
Cheapest car insurance for people with a speeding ticket: State Farm
Receiving a speeding ticket can raise one's car insurance rates, too — though not as much as being involved in an accident. State Farm again offers the most affordable car insurance for those who have gotten a speeding ticket. The insurer's rates are 46% cheaper than average, or $1,173 per year.
Cheapest car insurance for drivers with a DUI: State Farm
Getting a DUI or DWI citation can also raise one's rates. The cost of car insurance in Minnesota after a DUI is 78% more expensive than drivers without one. Still, drivers may find cheap auto coverage from State Farm. The insurer's rates are 63% cheaper than average for policyholders with a past DUI.
Cheapest car insurance for drivers with poor credit: State Farm
It's common for insurers to raise the car insurance rates for drivers with poor credit. In Minnesota, the cost of auto insurance for these drivers is $3,014, which is 43% greater than the cost for most people. Drivers with poor credit can find cheap coverage from State Farm. The insurer's rates are more than $1,000 cheaper per year than average.
Cheapest car insurance for married drivers: State Farm
It's common for insurers to reduce the cost of coverage for people who are married. The cost of full-coverage car insurance in Minnesota is 34% cheaper for married drivers. State Farm has the cheapest car insurance for married drivers, charging $666 less per year than average.
Cheapest car insurance for young drivers: State Farm
In Minnesota, the average cost of liability-only car insurance for young drivers is $2,511 per year, significantly more expensive than it is for older consumers.
While the typical cost of car insurance is 141% more expensive for younger drivers than their counterparts, it's still possible to find affordable coverage in Minnesota. State Farm offers the cheapest car insurance to young drivers. The insurer has the cheapest minimum coverage and full coverage policies.
Alternatively, drivers may find that Auto-Owners has cheap rates for young drivers. We found State Farm and Auto-Owners Insurance are the only providers in Minnesota that charge cheaper rates than average. Still, most people will find that the average cost of coverage from State Farm is nearly $1,000 cheaper than it is from Auto-Owners.
USAA is excluded from rankings because it is only available to current and former military members and their families.
Cheapest for young drivers with one accident: State Farm
Rates are just as likely to rise for young drivers after they're involved in an at-fault crash, increasing the average cost of coverage in addition to the age-based surcharge. Young drivers with an accident may find the cheapest rates from State Farm, which charges 55% less than average.
Cheapest for young drivers with one speeding ticket: State Farm
Young drivers with a speeding ticket may also commonly find cheap car insurance from State Farm. The insurer's rates for these drivers is half of the amount companies typically charge. This adds up to a difference of $3,115 per year, or $260 per month.
Best car insurance companies in Minnesota
Besides comparing the cost of car insurance from companies across Minnesota, ValuePenguin also examined the insurers’ customer service reputation. When shopping for car insurance, it's important to consider both service and cost. This ensures you get the best experience if you ever have to file a claim.
ValuePenguin commissioned a survey of policyholders to gauge people’s attitudes regarding their insurance providers. All policyholders with Auto-Owners were extremely satisfied with their most recent claim. The insurer also had the highest percentage of people describe its insurance as "excellent."
% of respondents overall extremely satisfied with most recent claim
% of respondents who rated customer service as "excellent"
|3||American Family (AmFam)||86%||50%|
In an effort to identify the best car insurance companies in Minnesota, we consulted the Complaint Index, published by the National Association of Insurance Commissioners (NAIC). Progressive had the lowest number of complaints for its size.
2019 NAIC complaint index
2020 J.D. Power Claims Satisfaction
AM Best Rating
|American Family Insurance||0.45||862||A|
The NAIC Complaint Index measures the number of complaints an insurance provider receives relative to its market share, or size. The agency uses 1.00 as the median number of complaints, meaning a Complaint Index above 1.00 signifies that an insurer receives more complaints than typical.
Minnesota auto insurance requirements
Minnesota state requires auto insurance coverage for all drivers with the following coverages and minimum limits:
While these limits identify the lowest amount of car insurance you can hold legally, you should consider adding more coverage, as damage above these levels could require you to pay significant out-of-pocket expenses following an accident.
How much liability insurance you need usually depends on your total assets at risk in the event of a lawsuit. For example, if you own highly valued property, we recommend greater liability coverage and considering umbrella insurance, which helps cover liabilities beyond your auto limits.
Average cost of car insurance in Minnesota by city
We found that the average cost of auto insurance in Minnesota is $2,109 per year to insure vehicles with full coverage. Annual premiums can range by city, however. Below are the average rates of car insurance in all the cities in Minnesota, where full coverage quotes were available. Rates are listed by those with cheapest to the most expensive car insurance rates:
Average annual cost
Percent from average
Auto insurance rate increases by company in Minnesota
In Minnesota, auto insurance rates have decreased by 2.7% on average across the ten largest car insurance companies. Specifically, State Farm cut its premiums the most, decreasing rates by 7.6% for 2020. The primary reason for the rate decreases was the COVID-19 pandemic. Coronavirus reduced the amount of driving overall across the nation and thus reduced the total number of auto claims. This allowed auto insurance providers to offer cheaper rates.
Premiums written (millions) 2019
Rate Change 2019
Rate Change 2020
Recap of the cheapest auto insurance in Minnesota
- Minimum coverage: State Farm
- Full coverage: State Farm
- After an at-fault accident: State Farm
- After a speeding ticket: State Farm
- After a DUI: State Farm
- Poor credit history: State Farm
- Very good credit history: State Farm
- Married couples: State Farm
- Young drivers: State Farm
- Young drivers with one accident: State Farm
- Young drivers with speeding ticket: State Farm
We collected thousands of rates from ZIP codes across Minnesota for the largest 10 insurers. We used a sample driver with the following profile:
- 30-year-old man
- Drives a 2015 Honda Civic EX
- Average credit
The base policy for the study was a full-coverage policy with the following limits:
|Bodily liability||$50,000 per person/$100,000 per accident|
|Personal injury protection||$10,000|
|Property damage||$25,000 per accident|
|Uninsured/underinsured motorist bodily injury||$50,000 per person/$100,000 per accident|
|Comprehensive and collision||$500 deductible|
For our minimum-coverage policy, we quoted a policy with the minimum required limits in Minnesota, above.
For other rates analyses (age, credit score, accident history and marriage status) the base policy listed above was alternated to reflect the new driver.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.