Cheapest Auto Insurance Companies in Minnesota
We analyzed rates from major insurers to find the most affordable options for Minnesota drivers. Rates shown are average annual premiums for a 35-year-old driver with a clean record and good credit.
Full Coverage Rates
| Rank | Company | Annual Premium | Monthly Premium | vs. State Avg |
|---|---|---|---|---|
| 1 | USAA* | $1,140 | $95 | -33% |
| 2 | State Farm | $1,320 | $110 | -22% |
| 3 | GEICO | $1,380 | $115 | -19% |
| 4 | Auto-Owners | $1,440 | $120 | -15% |
| 5 | Progressive | $1,560 | $130 | -8% |
| 6 | Farmers | $1,680 | $140 | -1% |
| 7 | Nationwide | $1,740 | $145 | +2% |
| 8 | Allstate | $1,920 | $160 | +13% |
| 9 | Liberty Mutual | $2,100 | $175 | +24% |
| 10 | American Family | $2,220 | $185 | +31% |
*USAA is available only to military members, veterans, and their families. Rates are approximate averages and may vary by location and individual factors.
Liability-Only (Minimum Coverage) Rates
| Rank | Company | Annual Premium | Monthly Premium |
|---|---|---|---|
| 1 | USAA* | $420 | $35 |
| 2 | State Farm | $480 | $40 |
| 3 | GEICO | $504 | $42 |
| 4 | Auto-Owners | $528 | $44 |
| 5 | Progressive | $564 | $47 |
*Minimum coverage in Minnesota includes liability (30/60/10) plus required PIP coverage ($40,000). Rates shown include both.
Average Auto Insurance Rates by Minnesota City
Car insurance rates in Minnesota vary by location. The Twin Cities metro area typically has the highest rates due to traffic density and higher claim frequencies, while rural areas enjoy lower premiums.
| City | Annual Premium | Monthly Premium | vs. State Avg | Key Factors |
|---|---|---|---|---|
| Minneapolis | $2,040 | $170 | +20% | Urban density, theft, harsh winters |
| St. Paul | $1,980 | $165 | +16% | Metro traffic, congestion |
| Brooklyn Park | $1,870 | $156 | +10% | Northwest metro suburb |
| Bloomington | $1,820 | $152 | +7% | Mall of America traffic |
| Plymouth | $1,750 | $146 | +3% | West metro commuters |
| Duluth | $1,560 | $130 | -8% | Northern city, lake effect weather |
| Rochester | $1,500 | $125 | -12% | Mayo Clinic city, lower density |
| St. Cloud | $1,480 | $123 | -13% | Central Minnesota, college town |
| Mankato | $1,440 | $120 | -15% | Southern Minnesota, lower traffic |
| Moorhead | $1,360 | $113 | -20% | Western border, rural area rates |
*Rates shown are for full coverage. Your actual rate depends on your specific ZIP code, driving record, and other factors.
Minnesota Auto Insurance Rates by Age
Age is one of the biggest factors affecting car insurance rates. Teen drivers pay the most, while rates typically drop significantly after age 25 and reach their lowest point around age 50-60.
| Driver Profile | Annual Premium | Monthly Premium | vs. State Avg |
|---|---|---|---|
|
Teen Driver (16-17)
Added to parent's policy
|
$4,760 | $397 | +180% |
|
Teen Driver (18-19)
Own policy
|
$4,250 | $354 | +150% |
|
Young Adult (20-24)
Clean record
|
$2,720 | $227 | +60% |
|
Adult (25-34)
Clean record
|
$1,820 | $152 | +7% |
|
Adult (35-44)
Clean record
|
$1,650 | $138 | -3% |
|
Middle-Aged (45-54)
Clean record
|
$1,530 | $128 | -10% |
|
Older Adult (55-64)
Clean record
|
$1,445 | $120 | -15% |
|
Senior (65-74)
Clean record
|
$1,580 | $132 | -7% |
|
Senior (75+)
Clean record
|
$1,785 | $149 | +5% |
Tip for Young Drivers
If you're under 25, staying on a parent's policy is usually the cheapest option. You can also reduce rates by maintaining good grades (good student discount), completing a driver's education course, and choosing a safe, modest vehicle. Minnesota winters make safe driving habits especially important for new drivers.
How Driving Violations Affect Your Minnesota Rate
Traffic violations and accidents can significantly increase your insurance premiums. Here's how much you can expect to pay after common incidents.
Speeding Ticket
| Before ticket: | $1,700/yr |
| After ticket: | $2,040/yr |
| Extra cost: | +$340/yr |
At-Fault Accident
| Before accident: | $1,700/yr |
| After accident: | $2,414/yr |
| Extra cost: | +$714/yr |
DWI Conviction
| Before DWI: | $1,700/yr |
| After DWI: | $3,026/yr |
| Extra cost: | +$1,326/yr |
How Long Do Violations Affect Your Rate?
Minnesota Auto Insurance Requirements
Minnesota is a no-fault insurance state, which means your own insurance pays for your injuries regardless of who caused the accident. Here are the legal requirements and recommended coverage levels for Minnesota drivers.
What Does No-Fault Mean?
In Minnesota's no-fault system, after an accident you file a claim with your own insurance company for medical expenses and lost wages, regardless of who caused the crash. This is done through Personal Injury Protection (PIP) coverage. You can only sue the other driver for serious injuries that exceed certain thresholds (over $4,000 in medical expenses or permanent disfigurement/disability).
Minnesota Minimum Coverage Requirements
Per Person
Per Accident
Per Accident
Additional Required Coverage
Required
Required
Required
| Coverage Type | State Minimum | Recommended | Why It Matters |
|---|---|---|---|
| Bodily Injury Liability | $30,000/$60,000 | $100,000/$300,000 | Serious accidents exceed minimums quickly. Protects your assets from lawsuits. |
| Property Damage | $10,000 | $50,000+ | Modern vehicles cost $35K+. $10K barely covers a fender bender on new cars. |
| Personal Injury Protection | $40,000 | $40,000+ | Covers your medical bills and lost wages. Minnesota requires this coverage. |
| UM/UIM Coverage | $25,000/$50,000 | Match liability limits | About 9% of MN drivers are uninsured. Protects you if they hit you. |
| Collision | Not required | $500 deductible | Critical for Minnesota winters. Covers your car in icy road accidents. |
| Comprehensive | Not required | $500 deductible | Covers hail, deer strikes, and theft. All common in Minnesota. |
Credit Score Impact in Minnesota
Unlike some states, Minnesota does allow insurers to use your credit score when determining rates. Drivers with poor credit can pay 50-100% more than those with excellent credit. Improving your credit score is one of the most effective ways to lower your Minnesota auto insurance premiums over time.
Understanding Your Coverage Options
Minnesota requires several types of coverage due to its no-fault system. Understanding what each covers helps you make informed decisions.
Personal Injury Protection - PIP
RequiredWhat it covers: Medical expenses, lost wages (up to $500/week), replacement services, and funeral costs for you and your passengers after any accident—regardless of who was at fault.
Minnesota minimum: $40,000 per person. This is one of the highest PIP minimums in the country.
Key benefit: You receive payment quickly from your own insurer without having to prove the other driver was at fault. This speeds up medical care and income replacement.
Coordination with health insurance: PIP typically pays first, and your health insurance covers amounts above PIP limits.
Liability Coverage
RequiredWhat it covers: Bodily injury and property damage you cause to others in an accident where you're at fault.
Minnesota minimum: 30/60/10 (higher than many states, but still insufficient for serious accidents)
When it applies: In Minnesota's no-fault system, liability only kicks in when injuries exceed the "tort threshold"—meaning medical costs over $4,000 or permanent injury/disfigurement.
Cost impact: Higher limits add $15-35/month but provide significantly better protection from lawsuits.
Uninsured/Underinsured Motorist - UM/UIM
RequiredWhat it covers: Your injuries and damages when the at-fault driver has no insurance or insufficient coverage to pay for your losses.
Minnesota minimum: $25,000 per person / $50,000 per accident (required—you cannot waive this coverage)
Why it matters: About 9% of Minnesota drivers are uninsured. In winter accidents, hit-and-run incidents are more common when drivers flee icy roads.
Recommendation: Match your UM/UIM limits to your liability limits for consistent protection.
Collision Coverage
RecommendedWhat it covers: Damage to your own vehicle from collisions with other cars, objects, or rollovers, regardless of fault.
Why it's critical in Minnesota: Icy roads, snow-covered highways, and black ice cause many single-vehicle accidents. Without collision coverage, you pay out of pocket for these repairs.
Deductible options: Typically $250, $500, or $1,000. Higher deductible = lower premium.
Cost impact: Adds $25-70/month depending on your vehicle value and deductible choice.
Comprehensive Coverage
RecommendedWhat it covers: Non-collision damage including theft, vandalism, fire, floods, falling objects, animal strikes, and weather damage.
Minnesota-specific risks covered:
- Deer strikes: Minnesota has one of the highest deer-vehicle collision rates. Over 40,000 deer crashes occur annually.
- Hail damage: Summer storms bring golf ball-sized hail that can total a vehicle.
- Falling ice/tree branches: Heavy snow and ice storms can damage parked vehicles.
Cost impact: Adds $15-35/month. Essential for Minnesota's weather conditions.
Gap Insurance
OptionalWhat it covers: The difference between what you owe on your car loan and what your car is worth if it's totaled.
Example: You owe $22,000 on your loan, but your car is only worth $17,000. If totaled in a winter accident, gap insurance covers the $5,000 difference.
Who needs it: Anyone who put less than 20% down, has a loan longer than 4 years, or leases their vehicle.
Cost impact: Usually $20-40/year when added to your policy (much cheaper than dealer-sold gap insurance).
How to Save on Minnesota Auto Insurance
Minnesota's unique no-fault system and harsh winters create specific opportunities to save. Here are proven strategies to lower your premiums.
Improve Your Credit Score
Minnesota insurers can use credit scores to set rates. Drivers with excellent credit save up to 50% compared to those with poor credit. Pay bills on time and reduce debt to improve your score and lower your premiums.
Winter Driving Course
Completing an approved defensive driving or winter driving course can earn you a discount of 5-10%. These skills also help you avoid accidents on icy Minnesota roads, keeping your record clean and rates low.
Garage Your Vehicle
Parking in a garage protects your car from Minnesota's weather and theft. Many insurers offer discounts of 3-8% for garaged vehicles. It also reduces comprehensive claims from hail and ice damage.
Try Regional Carriers
Minnesota has strong regional insurers like Auto-Owners and Western National that often beat national carriers on price. They understand local conditions and may offer better rates for Minnesota drivers.
Bundle Your Policies
Combining auto with home or renters insurance typically saves 5-25%. This can mean $200-400 in annual savings while simplifying your coverage with one company and one bill.
Consider Higher PIP Deductible
Minnesota allows you to add a deductible to your PIP coverage (up to $4,000 if you have health insurance). This can reduce your premium significantly, especially if your health insurance has good coverage.
Winter Tires Save More Than You Think
While not all insurers offer a direct discount for winter tires, using them significantly reduces your accident risk. A clean driving record over time is the best way to keep rates low. Some insurers like State Farm and Farmers have started offering small discounts for winter tire use—ask your agent about available savings.
Best Auto Insurance Companies in Minnesota
Based on rates, customer satisfaction, and coverage options, these are the top insurers for Minnesota drivers.
Best Overall
State Farm
Largest insurer in Minnesota with competitive rates and an extensive local agent network. Known for excellent claims service and comprehensive bundling options. Great choice for families and homeowners.
Best for Online
GEICO
Consistently offers low rates in Minnesota. Best for drivers who prefer managing everything online or through their mobile app. Strong digital tools and easy quote process make comparison shopping simple.
Regional Favorite
Auto-Owners Insurance
A Midwest-based regional carrier with excellent rates and high customer satisfaction. Known for personalized service through independent agents. Great option for those who prefer working with a local agent.
Best for High-Risk
Progressive
Great option for drivers with accidents or violations on their record. Offers Snapshot usage-based insurance and the Name Your Price tool. Competitive rates even for high-risk drivers in Minnesota.
What Minnesota Drivers Are Saying
"I was paying over $200 a month for auto insurance in Minneapolis. After comparing quotes through Credit Haven, I found a policy with Auto-Owners that saved me $65 a month with better coverage. I didn't even know regional carriers existed until I started comparing options."
"Understanding the no-fault system was confusing until I read the guide here. I learned that I needed good PIP coverage, and comparing quotes showed me which companies offered the best rates. Ended up saving $400 a year just by switching."
"After a deer hit my car last fall, I was worried my rates would skyrocket. Comparing quotes showed me that comprehensive claims don't raise rates as much as I thought. I also learned to increase my comprehensive coverage for Minnesota's weather and wildlife."
Frequently Asked Questions
How much does car insurance cost in Minnesota?
The average cost of full coverage car insurance in Minnesota is approximately $1,700 per year ($142/month), which is about 15% lower than the national average. However, rates vary significantly based on your city, age, driving record, and credit score. Minimum coverage with PIP averages around $500-600/year.
What is Minnesota's no-fault insurance system?
Minnesota is a no-fault state, meaning after an accident, you file a claim with your own insurance company for medical bills and lost wages through your Personal Injury Protection (PIP) coverage, regardless of who caused the crash. You can only sue the at-fault driver if your injuries exceed certain thresholds: medical expenses over $4,000 or permanent disfigurement/disability.
What is PIP coverage and how much do I need?
Personal Injury Protection (PIP) is required in Minnesota with a minimum of $40,000 per person. PIP covers your medical expenses (up to $20,000), rehabilitation, lost wages (up to $500/week), replacement services, and funeral expenses after any accident, regardless of fault. It pays quickly without waiting to determine who caused the crash. You can choose a deductible of up to $4,000 if you have health insurance to reduce your premium.
Does my credit score affect my Minnesota car insurance rate?
Yes, Minnesota allows insurers to use credit-based insurance scores when setting rates. Drivers with poor credit can pay 50-100% more than those with excellent credit. This is one of the biggest factors affecting your premium after your driving record. Improving your credit score over time is an effective way to lower your rates.
What is Minnesota's minimum car insurance requirement?
Minnesota requires: liability coverage of 30/60/10 ($30,000 per person, $60,000 per accident for bodily injury, $10,000 for property damage), PIP coverage of $40,000, and uninsured/underinsured motorist coverage of $25,000/$50,000. These minimums are higher than many states due to the no-fault system, but experts still recommend higher limits for adequate protection.
Do I need comprehensive coverage for Minnesota winters?
While not legally required, comprehensive coverage is highly recommended in Minnesota. It covers deer strikes (Minnesota has over 40,000 annually), hail damage from summer storms, falling ice and tree branches, and theft. Without it, you'd pay out of pocket for these common Minnesota risks. The cost is typically $15-35/month.
Why are Twin Cities insurance rates higher than outstate Minnesota?
Minneapolis and St. Paul have higher rates due to increased traffic congestion, more accidents, higher vehicle theft rates, and greater population density. Urban areas see more claims per capita than rural areas. Moving just 20-30 minutes outside the metro can sometimes reduce your premium by 10-20% if your commute allows it.
What happens if I drive without insurance in Minnesota?
Driving without insurance in Minnesota is a misdemeanor. Penalties include: fines of up to $1,000, license plate impoundment, vehicle impoundment, license revocation, and requirement to file SR-22 proof of insurance for up to 3 years. If you cause an accident while uninsured, you'll be personally liable for all damages and your license will be revoked until you pay restitution.
Can I get a discount for winter tires in Minnesota?
Some Minnesota insurers offer small discounts (2-5%) for using winter tires. State Farm and Farmers have been known to offer this discount. Even if your insurer doesn't offer a direct discount, winter tires significantly reduce your accident risk on icy roads, which helps keep your driving record clean and your rates low long-term. Ask your agent about available discounts.
Are there regional insurance companies I should consider in Minnesota?
Yes, Minnesota has excellent regional carriers that often beat national companies on price. Auto-Owners Insurance, Western National, and Grinnell Mutual are popular Midwest-based options with strong customer satisfaction ratings. They understand local conditions like harsh winters and rural driving. These companies typically work through independent agents rather than direct sales.
Is it free to compare quotes on Credit Haven?
Yes, comparing quotes through Credit Haven is 100% free with no obligation. We help you see your options from multiple Minnesota insurers so you can make an informed decision about your coverage. We don't sell insurance directly—we connect you with licensed providers who can offer you personalized quotes.
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