Compare Cheap Auto Insurance in Minnesota

• Drivers in Minnesota pay an average of $786 per year for minimum coverage and $2,010 for full coverage.
• Travelers, American Family, State Farm, and Auto-Owners offer some of the lowest premiums in many categories.
• North Star Mutual offers the lowest premiums for minimum coverage.
• For military personnel, veterans, and their family members, USAA offers competitive rates in some categories.

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• Cheapest full coverage auto insurance in Minnesota: State Farm ($1,274 annually) and American Family ($1,383 annually)
• Cheapest minimum coverage: North Star Mutual ($498 annually) and Auto-Owners ($524 annually)
• Cheapest with a teen driver: Travelers ($3,308 annually) and Auto-Owners ($3,526 annually)
• Cheapest with a speeding ticket: State Farm ($1,415 annually) and USAA ($1,781 annually)
• Cheapest with an at-fault accident: Travelers ($1,942 annually) and Auto-Owners ($2,016 annually)
• Cheapest with a DUI: American Family ($2,052 annually) and State Farm ($2,264 annually)
• Cheapest with low credit: American Family ($2,733 annually) and GEICO ($2,895 annually)

Many consumers care not only about the cost of their insurance premiums, but also the kind of service and treatment they can expect in the unfortunate event they must make a claim. In Minnesota, American Family has the highest customer satisfaction scores apart from USAA, which is only available to military personnel and their families.

While not rated on J.D. Power Studies (likely due to their size), regional insurers North Star Mutual, Western National, and West Bend received higher grades in the CRASH Network Insurer Report Card. CRASH Network is an independent organization that surveys collision repair shops on insurer’s claims practices, which can impact quality of repairs and your experience as a customer.

1. Shop around: Make sure to get quotes from multiple insurance companies before you commit to a contract. The rates noted here are average, statewide rates for general categories of drivers, but your specific situation could be different. We recommend you pick a handful of insurance providers based on the data for the general driver category that best describes you and the customer satisfaction info, and then get quotes from each of them.
2. Consider raising your deductible: If you have some savings to rely on and are willing to take on more financial risk, you can lower your premium by raising your comprehensive and/or collision deductibles. By doing so, you’re agreeing to cover more of the cost yourself in the event of an accident, before the insurance kicks in and starts covering everything.
3. Reduce coverage on older vehicles: Having collision or comprehensive insurance on an older/less valuable vehicle might not pay off much, as it won’t take much damage to total the vehicle.
4. Maintain good credit: Having a bad credit rating is one of the most significant factors in terms of driving up your insurance premiums. Anything you can do to improve your credit history — like opening a credit card account, using it to make small purchases, and being sure to pay it down to zero every month — could help immensely in lowering your premiums.

Average premium rates across the state can be informative, but the specific location you’re living in can also have a substantial impact on premiums. There are other factors that influence this but, commonly, bigger metro areas tend to have more congestion and accidents with more damage claims, driving up rates. In Minnesota, the population centers of the Twin Cities area are some of the most expensive areas to insure your vehicle, with a suburb on the outside of the city, like Bloomington, falling more toward the middle of the pack. Smaller cities, further from the denser population centers — like Duluth and Rochester — are among the cheapest.

When compared with most other states, auto insurance in Minnesota is required to meet a relatively comprehensive set of minimum requirements. This includes coverage in the event of an accident with one or more uninsured drivers, as well as personal injury protection (PIP) to cover the physical and financial injuries (like lost wages from missed work, for example) of the policyholder.

Minnesota is a “no-fault” state, meaning each driver’s PIP will go towards their own needs after an accident, which prevents litigation over small injury claims. However, this does not extend to damages to vehicles, for which the at-fault driver can be held liable.

To drive legally in Minnesota, a driver must carry insurance covering:

• Bodily injury liability: $30,000 per person/$60,000 per accident
• Property damage liability: $10,000 per accident
• Personal injury protection: $40,000
• Uninsured/underinsured motorist coverage: $25,000 per person/$50,000 per accident

It’s recommended that drivers get more than just the minimum mandated coverage — and most do. Having higher uninsured/underinsured motorist coverage can also help protect drivers in the event they’re in a costly accident with someone who does not have sufficient insurance to cover the damages (or doesn’t have insurance at all).

We analyze average auto insurance premiums in Minnesota for full and minimum coverage for good drivers with good credit as well as other driver profiles, including those with DUIs, accidents, low credit, and teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $50,000 per accident
• Personal injury protection: $40,000
• Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
• Comprehensive and collision: $500 deductible