Cheapest Minnesota Car Insurance (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
State Farm is often the best choice for Minnesota car insurance, whether for full coverage or minimum liability.
However, USAA does have cheaper rates than State Farm in Minnesota, although it is only available to members of the military and their families.
Likewise, some categories of drivers, such as young motorists or those with poor credit scores, might find a better deal elsewhere.
Cheapest full-coverage car insurance in Minnesota: State Farm
Minnesota drivers needing full-coverage car insurance usually get the best rates with State Farm, at an average rate of $1,261. American Family is the next lowest at $1,501 a year.
By comparison, the average rate for full-coverage auto insurance in Minnesota is $1,884 a year.
Cheapest companies for full-coverage car insurance
| Company | Average annual rate |
|---|---|
| State Farm | $1,261 |
| American Family | $1,501 |
| Auto-Owners | $1,587 |
| Travelers | $1,678 |
| Geico | $2,426 |
| Allstate | $2,719 |
| Farmers | $2,803 |
| USAA* | $1,098 |
Full-coverage car insurance isn’t a type of policy on its own. It’s a combination of three types of coverage; liability, collision and comprehensive.
Collision coverage compensates for damages to your car after an accident. Comprehensive coverage handles repair costs for damages from non-collision sources, such as an animal or a falling tree.
You are not required by law to carry full-coverage car insurance. However, if you’re financing or leasing your car, your lender will probably insist on full coverage in order to protect their investment.
Cheapest Minnesota liability-only coverage: State Farm
State Farm also has the cheapest average rate for liability-only car insurance in Minnesota, at $484 a year. American Family is the next cheapest at $531 a year.
Minnesota’s average liability car insurance rate state-wide is $743.
Cheapest companies for liability car insurance
| Company | Average annual rate |
|---|---|
| State Farm | $484 |
| American Family | $531 |
| Auto-Owners | $531 |
| Travelers | $740 |
| Geico | $885 |
| Allstate | $1,103 |
| Farmers | $1,321 |
| USAA* | $348 |
Liability car insurance is mandatory in most states, and is set in place to handle medical and repair costs for others involved in an accident you’re responsible for. It also handles your court expenses resulting from an accident.
Cheapest rates for young drivers in Minnesota: Auto-Owners
Auto-Owners has the cheapest liability-only rates for teen Minnesota drivers, with an average of $1,195 a year. State Farm is the next lowest option for young drivers, at $1,307 a year.
Cheapest liability car insurance companies for young drivers
| Company | Average annual rate |
|---|---|
| Auto-Owners | $1,195 |
| State Farm | $1,307 |
| Travelers | $1,650 |
| American Family | $1,965 |
| Allstate | $2,112 |
| Geico | $3,060 |
| Farmers | $6,375 |
| USAA* | $765 |
Teen drivers in Minnesota pay an average of $2,304 a year for liability car insurance, which is more than triple Minnesota’s standard average liability rate.
Teens generally pay more for car insurance than any other age group, since insurers see them as a high risk for a claim due to their lack of experience driving.
Cheapest rates after a speeding ticket in Minnesota: State Farm
If you’re a Minnesota driver with a speeding ticket or similar traffic violation on your record, your cheapest option for full coverage is State Farm, with an average rate of $1,361.
Auto-Owners is the next cheapest option at $1,587.
Cheapest car insurance companies after a ticket
| Company | Average annual rate |
|---|---|
| State Farm | $1,361 |
| Auto-Owners | $1,587 |
| American Family | $1,795 |
| Travelers | $2,151 |
| Geico | $3,134 |
| Farmers | $3,514 |
| Allstate | $3,884 |
| USAA* | $1,342 |
A speeding ticket stays on your driving record for a minimum of five years in Minnesota. During this time, expect to see higher car insurance rates, as you’ll be considered a higher risk for insurers.
Cheapest rates after an accident in Minnesota: State Farm
If you have an at-fault accident on your record, your cheapest choice for full coverage in Minnesota is probably State Farm, with an average rate of $1,461 a year.
Auto-Owners is the next cheapest at $1,940 a year.
Cheapest car insurance companies after an accident
| Company | Average annual rate |
|---|---|
| State Farm | $1,461 |
| Auto-Owners | $1,940 |
| Travelers | $2,340 |
| American Family | $3,196 |
| Farmers | $4,196 |
| Allstate | $4,566 |
| Geico | $4,717 |
| USAA* | $1,509 |
Best rates after a DUI in Minnesota: Travelers
If you have a DUI (driving under the influence) conviction — also known as DWI (driving while intoxicated) — then Travelers has the lowest average rate for full-coverage car insurance, at $2,710 a year.
Auto-Owners is almost as cheap for those with a DUI, averaging $2,748 a year.
Cheapest car insurance rates after a DUI
| Company | Average annual rate |
|---|---|
| Travelers | $2,710 |
| Auto-Owners | $2,748 |
| American Family | $2,751 |
| State Farm | $2,816 |
| Farmers | $4,259 |
| Allstate | $4,729 |
| Geico | $8,605 |
| USAA* | $1,987 |
A DUI/DWI stays on your record in Minnesota for up to 10 years, during which time you’ll see higher car insurance rates.
If your license is suspended due to a DUI, you will need to file an SR-22 to get it reinstated. It acts as proof that you carry Minnesota’s minimum car insurance limits, and you are required to have the SR-22 for three years.
Best Minnesota rates for bad credit: American Family
For drivers in Minnesota with a poor credit rating, American Family usually has the most affordable car insurance rates, with an average of $3,014 a year. Geico is likely the next cheapest at $3,471 a year.
Best car insurance companies for drivers with bad credit
| Company | Average annual rate |
|---|---|
| American Family | $3,014 |
| Geico | $3,471 |
| Auto-Owners | $4,697 |
| Allstate | $5,029 |
| Travelers | $5,069 |
| Farmers | $5,355 |
| State Farm | $8,227 |
| USAA* | $2,618 |
Minnesota drivers with poor credit scores pay higher rates because auto insurance companies see a link between credit scores and the chances of filing a claim.
Credit-based insurance scoring is still a debated topic and has been limited or prohibited in some states.
Minnesota insurance rates by city
Of Minnesota’s 25 most populated cities, Mankato has the lowest average car insurance rate in Minnesota, at $1,647 a year. Meanwhile, Brooklyn Park has the state’s highest average rate of $2,245 a year.
| City | Annual |
|---|---|
| Apple Valley | $1,863 |
| Blaine | $2,024 |
| Bloomington | $2,035 |
| Brooklyn Park | $2,245 |
| Burnsville | $1,950 |
| Coon Rapids | $2,042 |
| Cottage Grove | $1,885 |
| Duluth | $1,840 |
| Eagan | $1,917 |
| Eden Prairie | $1,872 |
| Edina | $2,004 |
| Lakeville | $1,872 |
| Mankato | $1,647 |
| Maple Grove | $1,872 |
| Maplewood | $2,197 |
| Minneapolis | $2,197 |
| Minnetonka | $1,890 |
| Moorhead | $1,688 |
| Plymouth | $1,923 |
| Rochester | $1,710 |
| Shakopee | $1,863 |
| St. Cloud | $1,844 |
| St. Louis Park | $2,019 |
| St. Paul | $2,129 |
| Woodbury | $1,939 |
Minnesota car insurance laws
Minnesota is a no-fault car insurance state. This means you file with your own car insurance company to cover your damages if you’re in an accident, regardless of who is responsible.
In order to offset costs, states with no-fault car insurance laws often require drivers to carry uninsured/underinsured motorist coverage, as well as personal injury protection.
Minimum coverage for car insurance in Minnesota
Minnesota’s required liability car insurance coverage limits are:
- $30,000 bodily injury coverage per person
- $60,000 bodily injury coverage per accident
- $10,000 property damage coverage
- $25,000 uninsured motorist bodily injury coverage per person/$50,000 per accident
- $25,000 underinsured motorist bodily injury coverage per person/$50,000 per accident
- $40,000 personal injury protection
Methodology
LendingTree obtains rates from insurance company filings reported to Quadrant Information Services. Rates shown in this article are based on an analysis of more than 800,000 car insurance quotes for sample drivers in every Minnesota ZIP code. Your rates may vary.
Unless stated otherwise, our sample driver is a 30-year-old man with good credit and no tickets, accidents or DUIs driving a 2015 Honda Civic EX.
Minimum liability policies provide liability coverage with the state’s required minimum limits.
Full coverage policies include the following limits and deductibles:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Collision: $500 deductible
- Comprehensive: $500 deductible
*USAA is only available to current and former members of the military and their families