How to Compare Car Insurance Quotes 2024
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Cheapest Minnesota Car Insurance (2024)

Published on:
Content was accurate at the time of publication.

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.

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

CompanyAverage 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.

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

CompanyAverage 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.

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

CompanyAverage 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.

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

CompanyAverage 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.

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

CompanyAverage 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

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

CompanyAverage 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.

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

CompanyAverage 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.

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.

CityAnnual
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 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