Cheapest Car Insurance in Minnesota (October 2024)

The top insurance companies in Minnesota include Westfield, which offers the cheapest minimum coverage, and American Family, AAA and West Bend Mutual, which are great options depending on your driver profile.

The following companies offer the cheapest auto insurance policies for minimum coverage in Minnesota:

• Westfield: $284 per year
• West Bend Mutual: $391 per year

GEICO has the most expensive minimum coverage auto insurance in Minnesota, with an average annual cost of $897.

All drivers in Minnesota are required by law to have bodily injury liability, property damage liability, uninsured/underinsured motorist coverage and personal injury protection.

In Minnesota, a minimum coverage car insurance policy only covers third-party damages, property damage and damages from uninsured and underinsured drivers. For added protection for your vehicle, consider purchasing a full coverage policy that includes collision and comprehensive coverage.

The following companies offer the cheapest full coverage auto insurance in Minnesota:

• AAA: $860 per year
• American Family: $882 per year

At $1,965 per year, GEICO is the most expensive option in Minnesota for a full coverage car insurance policy.

With AAA, adding comprehensive and collision coverage to your policy raises your annual rate by around $437. Full coverage auto insurance provides additional financial security against both on- and off-road mishaps if you need to make a claim for your vehicle.

Depending on how much car insurance you need, your rate will vary. MoneyGeek's full coverage sample policy includes the following coverages and limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident
• Comprehensive and collision insurance, each with a $1,000 deductible

To reduce your rate, drop comprehensive and collision coverage, raise your deductible for comprehensive or collision or lower your liability limits. With less coverage, though, you may be vulnerable to a substantial financial loss if you’re found at fault in an accident.

Insurers typically offer online quotes, but it can take up to 15 minutes to provide the personal information required. This can add up when comparing rates for multiple lenders.

MoneyGeek’s auto insurance calculator makes it easier for you to get a quick quote for affordable car insurance. Simply input your age, driving history and gender from the selections below to get started.

Age is one of the biggest factors affecting car insurance rates in Minnesota. Nationwide, American Family and AAA offer the cheapest options, depending on what age group you and your family belong to.

In Minnesota, the following companies offer the cheapest insurance policies for teens added to a family policy:

• Nationwide: $1,742 per year for female teens and $1,850 per year for male teens
• State Farm: $1,880 for female teens and $2,303 per year for male teens

Auto-Owners is the most expensive, with an average cost of $2,794 for boys and $2,599 for girls.

Car insurance rates for teens significantly decrease as they age, with 19-year-olds getting the cheapest offers from providers. A 19-year-old male driver in Minnesota can get the lowest car insurance rates from Nationwide ($1,628).

It costs significantly less to add a 16-year-old driver to a family policy, which is only around $2,530, than individual insurance, which costs approximately $4,682 per year. Individual coverage for a 16-year-old male driver in Minnesota costs $2,152 more than a family policy. And if a teen is under 18, they must have a parent or guardian as a co-signer to legally get auto insurance.

Many auto insurance providers offer discounts to teen drivers — like good student and student away at school discounts. For instance, students who earn at least a B average or make the dean's list may qualify for a discount of up to 15% from GEICO.

Drivers in their 20s can obtain the cheapest full coverage car insurance from the following companies in Minnesota:

• American Family: $892 per year
• Iowa Farm Bureau: $1,145 per year

GEICO is the most expensive car insurance provider for drivers in their 20s, with an average annual premium cost of $2,353. In Minnesota, 25-year-old drivers pay an average of $293 more per year than 40-year-olds.

The following insurance companies offer the lowest rates for senior drivers in Minnesota:

• AAA: $782 per year
• American Family: $820 per year

GEICO has the most expensive auto insurance premium for seniors in Minnesota, with an average yearly rate of $1,694.

Compared with middle-aged drivers, older drivers in Minnesota pay an average of $106 less per year for full coverage auto insurance. However, as drivers approach their 70s and 80s, rates typically increase.

Senior drivers can receive additional auto insurance discounts from several providers, including Allstate, Farmers and GEICO, in addition to senior-specific discounts.

They can obtain the best insurance by comparing insurers’ rates, as age is simply one of many criteria that impact the cost of car insurance.

For Minnesota drivers with sports cars, American Family offers the cheapest rates. It also has the most affordable rates for drivers with a history of at-fault accidents, DWI and speeding tickets. West Bend Mutual is the most affordable car insurance provider for people with low credit scores.

Drivers in Minnesota with a speeding ticket will get the best rates from the following insurance companies:

• American Family: $1,050 per year
• Iowa Farm Bureau: $1,153 per year

GEICO offers the most expensive car insurance for drivers with a speeding ticket, at $2,293 per year. A speeding ticket in Minnesota can increase the cost of your insurance by $268.

The following insurance providers offer the cheapest option for Minnesotan drivers with an at-fault accident on their records:

• American Family: $882 per year
• AAA: $1,224 per year

GEICO offers the most expensive auto insurance in Minnesota at $3,485 per year. Having an at-fault accident on your driving record may increase your rate by $479 per year.

Drivers with a DWI (Minnesota does not use DUI) offense can get the cheapest car insurance in Minnesota from the following companies:

• American Family: $1,050 per year
• West Bend Mutual: $1,365 per year

At $6,416 per year, GEICO is the most expensive provider. In Minnesota, a DWI offense may increase the cost of your car insurance by $1,039 per year.

The following companies offer the cheapest car insurance to drivers in Minnesota with poor credit:

• West Bend Mutual: $1,239 per year
• American Family: $1,656 per year

With an average yearly cost of $4,001, the most expensive insurer is Western National.

One of the most important factors insurers evaluate when determining your premium is your credit-based insurance score. Drivers with bad credit in Minnesota will pay approximately $1,263 more per year than those with good credit.

According to actuarial data, drivers with poor credit are more likely to file claims, so insurers typically charge them more. Though this practice is illegal in some states, it’s permitted in Minnesota.

You can gradually reduce the cost of your insurance by improving your credit score, but you can also save money by choosing a company that offers discounts for safety features or bundling.

The following companies offer the cheapest rates for sports car drivers in Minnesota:

• American Family: $821 per year
• Travelers: $974 per year

GEICO offers the most expensive car insurance in Minnesota for sports car drivers, with an average annual cost of $2,421.

Sports cars typically cost more to insure than conventional cars because of their high repair and replacement expenses. In Minnesota, it costs $150 more to insure a sports car than a Toyota Camry LE.

MoneyGeek used a Ford Mustang as its sample sports car in this study, but costs may differ depending on your particular car model. It is generally more expensive to insure sports, electric and luxury cars; otherwise, model may not be a significant factor. However, this may not be true for all states.

For the lowest cost, veterans and active duty military service members in Minnesota can purchase auto insurance from AAA at an average of $860 per year.

USAA also has inexpensive auto insurance plans, with an average annual premium cost of $960. Active duty military members, veterans and their families have access to its plans in all 50 states and Washington, D.C.

Another option for savings as a military community member is GEICO, which offers specific discounts for them.

One of the main factors impacting the cost of car insurance is the city in which you reside. Residents that live in neighborhoods with greater rates of theft, crashes and vandalism are more likely to file insurance claims and incur higher costs.

For instance, residents in Rochester can purchase the cheapest insurance from West Bend Mutual at an average cost of $709 per year, whereas residents in Minneapolis will pay $1,070 for insurance from AAA.

Explore our list of Minnesota cities below for a comparison of average vehicle insurance prices by location.

Minnesota drivers are required to carry liability insurance, personal injury protection (PIP) and uninsured and underinsured motorist coverage. More information on what you should know about auto insurance in Minnesota is provided below.

In accordance with Minnesota's auto insurance laws, drivers must carry a minimum amount of liability insurance as well as PIP and uninsured and underinsured motorist coverage.

Drivers who have a history of serious violations in Minnesota, such as a DWI or driving without a license, are required to have their insurer submit a SR-22 form to the state's Driver and Vehicle Services department.

MoneyGeek advises purchasing bodily injury liability insurance with minimum levels of $100,000 per person and $300,000 per accident and raising property damage liability to $100,000.

If you lease or finance your vehicle, you may be required to carry comprehensive and collision coverage. Collision will cover repairs if your car collides with another vehicle or an object, like a tree or fence. It also covers rollover accidents and pothole damage. Comprehensive, also known as "other than collision," covers theft, vandalism, fire and weather-related damage, as well as animal strikes, like hitting a deer.

The Minnesota Automobile Insurance Plan accepts applications from Minnesotans who have recently been turned down for auto insurance on the free market. This network of insurers was created to help high-risk drivers obtain auto insurance coverage.

Companies or wealthy individuals may be eligible for automobile self-insurance in Minnesota. To qualify, drivers must meet numerous requirements, including owning at least 25 motor vehicles registered under the same name, having a minimum income of $5 million and more. When the Commissioner of Commerce is confident that you have the financial stability and administrative capabilities necessary to fulfill all obligations and responsibilities under the No-Fault Act, approval will be given.

It may be complicated to explore and compare auto insurance providers given the options. To learn more about auto insurance in Minnesota, read the answers to some frequently asked questions below.